Equal Pay Day: Why Wage Equity for People with Disabilities Matters

Today marks National Equal Pay Day—a day that symbolizes how far into the year women must work to earn what men earned in the previous year. While gender pay inequality continues to be a national concern, this day is also an important moment to shed light on another persistent and often overlooked pay gap: the wage disparity experienced by people with disabilities.

The Reality of Wage Gaps for People with Disabilities

People with disabilities face significant wage disparities across all sectors of the workforce. According to a 2023 report from the U.S. Bureau of Labor Statistics (BLS), the median earnings for workers with disabilities were only 66 cents for every dollar earned by workers without disabilities. This wage gap not only reflects biases and barriers in hiring but also longstanding systemic inequities in education, access, and accommodations.

A 2020 report by the National Disability Institute (NDI) found that individuals with disabilities are twice as likely to live in poverty and are employed at significantly lower rates than those without disabilities. Even among those who are employed full-time, pay equity remains elusive.

The Subminimum Wage Debate

One major contributor to this issue is the continued use of Section 14(c) of the Fair Labor Standards Act, which allows employers to pay people with disabilities less than the federal minimum wage. Though intended to create opportunities, this practice has come under increasing scrutiny for perpetuating inequality.

In 2020, the U.S. Commission on Civil Rights issued a report recommending the phase-out of 14(c) certificates, stating that the program “limits the potential of people with disabilities and fails to prepare them for integrated employment.”

Indiana's Step Toward Fair Wages

We're proud to share that Indiana has already made legislative progress in this area. In 2023, Indiana passed House Bill 1342, which phases out the use of subminimum wages for people with disabilities. The law prohibits new 14(c) certificates from being issued and sets a timeline for existing ones to expire, moving the state toward competitive, integrated employment opportunities for all Hoosiers.

This legislative shift reflects a growing recognition that all people—regardless of ability—deserve equal pay for equal work. Indiana is now one of a growing number of states leading the way in making wage equity a reality.

Source: Indiana General Assembly – House Bill 1342 (2023)

Why This Matters to Sycamore Services

At Sycamore Services, we believe in the value and potential of every individual. Our mission is built on the principles of equity, inclusion, and opportunity. We work to empower people with disabilities to achieve greater independence and meaningful employment in their communities—at wages that reflect their talents and contributions.

We support employment models that emphasize:

• Competitive, integrated employment

• Skills development and training

• Person-centered planning and support

• Advocacy for policy change that promotes wage equity

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Moving Toward Change

There is growing momentum across the country to eliminate subminimum wages and expand inclusive workforce practices. Indiana’s leadership in this area sets a strong example of what’s possible when we prioritize fairness and inclusion.

How You Can Help

• Advocate for wage equity policies in your community

• Support businesses and organizations that employ people with disabilities at fair wages

• Educate others about the wage gap and its impact on the disability community

• Donate to or volunteer with nonprofits that promote inclusive employment

At Sycamore Services, we’re committed to continuing this vital work—and we thank you for being a part of it.

References

• U.S. Bureau of Labor Statistics. (2023). Persons with a Disability: Labor Force Characteristics – 2022. https://www.bls.gov/news.release/pdf/disabl.pdf

• National Disability Institute. (2020). The ADA at 30: Economic Self-Sufficiency and Equity for Americans with Disabilities. https://www.nationaldisabilityinstitute.org/reports/

• U.S. Commission on Civil Rights. (2020). Subminimum Wages: Impacts on the Civil Rights of People with Disabilities. https://www.usccr.gov

• U.S. Department of Labor. (n.d.). Section 14(c) of the Fair Labor Standards Act. https://www.dol.gov/agencies/whd/workers-with-disabilities

• Indiana General Assembly. (2023). House Bill 1342. https://iga.in.gov/legislative/2023/bills/house/1342

  
  
  
  

Interested in learning more about inclusive employment or how Sycamore Services supports equal pay for people with disabilities? Contact us today—we’d love to connect. 💚

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