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Statehouse

Ohio Subminimum Wage News 
Click on Each News Report to Read the Full Story

November 2015  Below minimum pay for disabled challenged

February 2016
Judge orders back pay for disabled workers

December 2017          Sheltered workshop and Honda of America Manufacturing sued for disability discrimination 

October 2022
Two Ohio lawmakers want to prohibit paying people with disabilities less than minimum wage

January 2023  Laboring Under Discrimination

February 2023           Workers with disabilities can legally make less than minimum wage in Ohio

March 2023

Making Cents: Subminimum wage for Adults with Disabilities

January 2024       Court ruling affirms decision awarding back pay to individuals who were unlawfully paid less than minimum wage

January 2024
Rep. Jarrells Responds to federal court ruling on subminimum wages, advocates for equal compensation

 February 2024             
Reps. Jarrells, Lipps introduce legislation transitioning Ohio away from paying subminimum wages

March 2024   
Ohio proposes bill to eliminate subminimum wage

March 2024  
Akron legal news: District court affirms damages award in wage disability case

June 2024                         Ohio may end program the pays disabled people less than minimum wage

June 2024   
Ohio lawmakers working to phase out subminimum wage

September 2024   Ohioans push to end subminimum wage for some workers

October 2024   
Ohio pushing to end subminimum wage 

December 2024 
What Ohioans think about federal push to end subminimum wages for workers with disabilities

March 2025 
The effort to end subminimum wage in Ohio

April 2025

Bloomberg Business week: It's legal to pay US workers with disabilities as little as .25 an hour

There is a total of 17 states, 11 of which have already completed implemenation (the remaining 6 states are in the process of phasing out). However, Illinois & Georgia passed legislation in 2025 and will be added to the list. 
 

Click on Each State Below to its Legislation

Maryland (2016, HB 420/SB 417)
Phased out payment of subminimum wage for individuals with disabilities by October 2020Prevents approval of new certificates as of October 2015Current Status: Phased Out
Maryland reports no active or pending 14(c) certificates in the state
 

Alaska (2018, repeal of 8 AAC 15.120); (2022, SB185)
(2018) https://labor.alaska.gov/news/2018/news18-04.pdf 
(2018) https://aws.state.ak.us/OnlinePublicNotices/Notices/Attachment.aspx?id=110744 
(2018) Repealed (by regulation) minimum wage exemption for individuals with disabilities effective February
2018. • (2022) https://legiscan.com/AK/bill/SB185/2021 
(2022) Amended list of exceptions (maintains rule related to individuals with disabilities)
Current Status: Phased out
Alaska reports no active or pending 14(c) certificates in the state.

Oregon (2019, SB 494)
Phased out subminimum wage for people with disabilities by June 2023
Current Status: Phased out
Oregon reports no active or pending 14(c) certificates in the state

Maine (2020, LD1874/HP1340)
Ended subminimum wage as of December 2019
Current Status: Phased out
Maine reports no active or pending 14(c) certificates in the state

Washington (2021, SB5284)
Prevents issuance of new 14(c) certificates and begins sunset of all existing certificates effective August 2023
Eliminated payment of subminimum wage by state agencies as of enactment
Current Status: Phased out
Washington reports no active or pending 14(c) certificates in the state

Hawaii (2021, S793)
Ends use of 14(c) certificates as of January 2022
Current Status: Phased out
Hawaii reports no active or pending 14(c) certificates in the state
 

Colorado (2021, SB39)
Prevents issuance of new 14(c) certificates and phases out existing certificates in place as of July 2025
Current Status: Phased Out
Colorado reports no active or pending 14(c) certificates in the state.
 

California (2021, SB639
The Act prohibits new special licenses from being issued after January 1, 2022, permits a license to only
be renewed for existing license holders who meet requisite benchmarks, and prohibit an employee
with a disability from being paid less than the legal minimum wage by January 1, 2024.
 

Delaware (2021, HB122)
The Act requires that authorization to pay individuals with disabilities less than the minimum wage required to be paid to other employees with be phased out by July 1, 2023
Current Status: Phased out
Delaware reports no active or pending 14(c) certificates in the state
 

Rhode Island (2022, S2242)
Repeals 28-12-9 of the general laws which provides that the director of labor and training may approve of wages below the minimum wage for those persons whose earning capacity is impaired due to physical or mental disability
Current Status: Phased out
Rhodes Island reports no active or pending 14(c) certificates in the state. 
 

Tennessee (2022, SB2042)
As enacted, requires employers to pay employees no less than minimum wage, regardless of the subminimum wage for an employee whose earning or production capacity is impaired by age, physical, or mental deficiency or injury.
Current Status: Phased out
Tennessee reports no active or pending 14(c) certificates in the state
 

South Carolina (2022, S533)
Prohibit The Use of Section 14(c) of the Fair Labor Standards Act of 1938 to Pay Subminimum Wages to Individuals with Disabilities
Current Status: Phase out in progress
South Carolina reports 6 active 14(c) certificates serving 278 individuals, and no pending certificates
 

Virginia (2023, HB1924)
Prevents issuance of new 14(c) certificates and phases out existing certificates in place as of July 2030.
Current Status: Phase out in progress
Virginia reports 5 active 14(c) certificates serving 129 individuals, and no pending certificates

Nevada (2023, AB259)
Prevents issuance of new 14(c) certificates as of January 2025 and phases out existing certificates in place as of January 2028.
Current status: In progress
Nevada reports 4 active 14(c) certificates serving 154 individuals, and no pending certificates
 

As of July 2024, there are a total of thirteen (13) states that do not currently utilize 14(c) certificates. While no legislation prohibiting the use of 14(c) certificates is in place, the District of Columbia, Vermont and Wyoming report no active or pending 14(c) certificates at this time. 
 

Other recent state activities:

Minnesota passed legislation (2021, HF33, Article 17, Section 14-15) establishing a task force to develop a plan to phase out subminimum wages by August 2025. Additionally, $14.1 million in grants were appropriated to help disability service providers transform their business models and boost work option in the community.

Kansas passed legislation (2024, SB15) expanding an income tax credit for goods and services purchased form qualified businesses that employ disabled workers and that pay those workers at least the minimum wage. The law also creates a matching grant program to assist employers to voluntary transition away from and relinquish their 14(c) certificate. 
 

Texas (2019, SB753)
Requires that organizations that operate state use contracts to employ people with disabilities must pay at least minimum wage. 
 

Illinois (2021, EO 2021-6)
Eliminates subminimum wage in state contracting for people with disabilities

At the local level, Chicago (2019) passed city-specific bans on subminimum wage. (Previously, Seattle (2018), Denver (2019) and Reno (2019) passed similar city-specific bans, and King County, WA (2019) barred sub-minimum wage for employees and contractors. However, these locales are now subject to statewide legislation eliminating 14(c). 


As of July 1, 2024, Ohio and New York have legislation in progress to phase out 14(c). Additionally, legislation was introduced in Georgia, Kentucky, Minnesota, Oklahoma, Vermont and West Virginia during the 2024 legislative session, but died in committee or chamber. 

Source Data Gathered by: 
www.apse.org
 

Source Data:
U.S. Department of Labor Wage and Hour Division (USDOL, 14(c) Certificate Holders, 7/2024) 
American Community Survey (ACS, Employment Data, 2022)
 

Comparisons of employment rates from the year legislation was enacted to the most currently available date (Ages 21-64)

Click the link below to access the current listing of Ohio's employers who pay subminimum wage to employees with disabilities

Ohio's Facility-Based Employment, ​includes:

  • Sheltered workshops

  • Work activity centers  

  • Extended employment programs​​

 

(click                           for all of Ohio's outcome data)

Image of a graph of Ohio's wages and outcome data. 

Screenshot 2025-04-27 105817.png

Reporting Period 2023

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$0.00 -$4.99                                   3189 individuals with disabilities

$5.00 - $8.54                                     401  individuals with disabilities

​$8.71 - $8.79                                        23  individuals with disabilities

$8.81 - $9.29                                      226 individuals with disabilities

$9.31 - $10.09                                      47 individuals with disabilities

$10.10 - Minimum wage 2023   2597 individuals with disabilities

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Total                                                     3886 individuals with disabilities in subminimum wage

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Click the link below for full context 

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