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Delaware House Democrats

Subminimum Wage to Be Phased Out

June 21, 2023

The Delaware General Assembly passed House Bill 122 in June 2021, with the goal of guaranteeing fair and equal employment opportunities for people with disabilities. Known as the Jamie Wolfe Employment Act – in tribute to the tireless advocate for disability rights in Delaware who died in 2018 – the bill mandated a phased elimination of subminimum wage employment by January 2024. 

As part of the phase-out plan, a series of public forums where families will have the opportunity to review and comment will be held, beginning TuesdayJuly 11, 2023

Subminimum wage was added to the Fair Labor Standards Act in 1986 to include Section 14(c), allowing individuals with disabilities to earn less than the federal or state minimum wage, intended to provide an expanded range of employment options. However, that program resulted in those individuals being paid far less than minimum wage, sometimes less than $1 per hour.

In recent years, the number of 14(c) employment programs in Delaware has dwindled as attitudes and laws have changed with respect to people with disabilities and their capacity to participate in the job market.

“It’s time to affirm that all Delawareans, including those with disabilities, are entitled to earn the same minimum wage,” said Rep. Debra Heffernan, who sponsored HB 122 last year. “It’s time to move on from an outdated program model.” 

A 2020 report issued by the U.S. Commission on Civil Rights recommended ending the 14(c) program, calling it “inconsistent with the civil rights protections to which people with disabilities are entitled.” The report found that the average 14(c) employee earns $3.34 per hour and works 16 hours per week, usually engaged in tasks such as packing, collating or basic assembly.

Twelve states have already phased out the 14(c) program, with 13 others, including Delaware, in the process of doing so. 

“A person with disabilities who puts in a hard day’s work should be paid the same as anyone else. Their labor is no different. Their dignity is no different. And thanks to the support of my colleagues and the tireless work of advocates, their paychecks will soon be no different,” said Sen. Nicole Poore, the Senate prime sponsor of HB 122. “I want to thank the Employment First Oversight Commission for their work to develop a plan to phase out Delaware’s use of this 84-year-old federal program so all Delawareans can be paid a fair and equitable wage.”

The Delaware Employment First Oversight Commission (EFOC) was charged with development and implementation of the mandated phase-out of subminimum employment for disabled individuals. Additionally, the bill addressed resource and funding requirements, ensuring all individuals with disabilities, regardless of the nature or severity of the disability, have an opportunity to be employed with competitive wages in an integrated setting.

“Few things measure one’s value and self-worth like getting a paycheck that is equitable to your peers. That is why I am so grateful to Representative Debra Heffernan for her leadership in this matter,” said John McNeal, Director for the State Council for Persons with Disabilities. “She and Representative Kendra Johnson were paramount to the successful development of this implementation plan. I also want to thank the Employment First Oversight Commission, under the purview of the State Council for Persons with Disabilities, for their work to ensure this is a right of all Delawareans. 

“The tireless work done by the Task Force —which included relevant state agencies, individuals and family members with disabilities, as well as a number of nonprofit organizations— developed a plan that will help train and support people with disabilities to achieve their occupational goals. There is still much work to be done and the Employment First Oversight Commission is committed to its responsibilities to ensure integrated employment for all people with disabilities who desire it.”

The EFOC plan phases out the 14(c) sub-minimum wage provision by January 31, 2024. 

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