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01/29/2024 “Wage Disparities and the Disabled” By Kaylee McGrath

Opening Statement:

There are some opinions that a paycheck is often seen as a measure of one’s value in the workforce. However, for U.S. workers with disabilities, it reflects a persistent gap widened by working multiple jobs and widespread discrimination. Many people including myself, have wondered why there is still a pay gap regarding wages among people with disabilities and when did this unfair practice start? This topic of conversation has also been greatly discussed over the course of many years in our government as our elected officials have been debating this for some time to reduce the pay gap across the U.S. (Raise the Wage Act (RTWA) of 2023). While doing my research and preparing this article, I became totally enraged to learn that wage disparities are worse for women with disabilities. I have been writing various articles on disabilities since the spring of 2020, as well as what industries, careers, and jobs are out there that are not only suitable for people with disabilities, how someone with a disability can be successful, and earn a respectable living. If a nondisabled person and a disabled person can do the same job, same responsibilities, they should be paid equally within the qualifications of experience and education. Since all data from 2023 are not in yet, most of the information and statistics I’ve used and noted are of course from 2022 or earlier. Nevertheless, presently, there is still an unfair wage gap and there shouldn’t be.

 

·         When Did It Become Legal to Pay Lower Wages for Disabled Workers?

In 1938, then President Franklin D. Roosevelt signed the bill for the “Fair Labor Standards Act”. Listed in section 14(c) of the Fair Labor Standards Act authorized employers, after receiving a certificate from the Wage and Hour Division (WHD), to pay wages that are less than the Federal Minimum Wage to workers who have disabilities for the work being performed. This initiative was designed to help wounded War Veterans obtain access to jobs. Nationwide, there are currently over 40,000 disabled workers under the 14(c).

·         Current US Federal Minimum Wage

Currently, the US Federal minimum wage is very low at $7.25 an hour, and in disbelief on what its name might suggest, it isn’t even the minimum. In 37 states, employers can legally pay certain employees less than the statutory floor, making even $7.25 an hour, an already far below the living wage that is unattainable for millions of working Americans. There have been government discussions to raise the federal minimum wage this summer to $10.50.

·         Are Sheltered Employment Facilities Still in Operation?

The short answer is, yes! Sheltered workshops used to exist across the nation, but in recent years, several states have taken steps to abolish them, shifting their focus to training people with disabilities for competitive employment at a living wage. New Jersey still has Sheltered Employment and Workshops.  

·         What is an Example of a Sheltered Workshop/Employment?

Sheltered employment is employment provided for handicapped/disabled individuals in a protected environment under an institutional program. The most common types of sheltered employment are the following:  Sheltered Workshops, workshops engage in manufacturing, assembly, reconditioning, repair, and other operations.

·         What is the Difference Between Sheltered Employment and Supported Employment?

Because of exceptions in wage and hour laws, workers confined to Sheltered Workshops can be and typically are paid sub-minimum wage. However, workers in Supported Employment tend to earn minimum wage or greater.

·         Looking at Various Industries and Private Sectors

Recent data has shown that U.S. workers with disabilities earned an average of 42% less than their equals without disabilities, and they are also 10% less likely to have received a pay raise within the past year.

·         Disability And Wage Inequality (Dated from 2013 – 2023)

Based on a comparison of U.S. Census data spanning the past 10 years, wage disparities analyzed between workers with and without disabilities. It was found that significant variations in income gaps existed over this period, offering valuable insights into the economic challenges faced by workers with disabilities.

·         Smallest Gap, Highest Gap, and the Unfortunate Upward Trend

The lowest median wage disparity was in 2013, where workers with disabilities earned about $10,000 less than other workers each year. However, this situation worsened significantly in 2022, when this wage difference jumped to nearly $13,000 and resulted in workers with disabilities making 42% less than other workers, on average. This gap has shown a general upward trend over the past decade, with occasional fluctuations along the way. These may reflect various economic factors and policy changes that have influenced the earnings of workers with and without disabilities.

Other Data Facts and Findings

1.       Over 30% of workers with disabilities have experienced discrimination at work related to their disability.

2.       Nearly 20% of workers with disabilities believe they were let go from a job due to their disability.

3.       Additional part-time work account for nearly 40% of income among workers with disabilities by selling products on platforms like eBay or Amazon (21%), and slightly fewer (16%) sold handmade crafts or art through channels like Etsy.

4.       Over 3 in 10 workers with disabilities work multiple jobs to make ends meet.

Gender Wage Gap vs. Disability Wage Gap Information

·         As the gender pay gap has held steady, however in some major city areas, young women are out-earning or being paid equally to their male equals. But unfortunately, these efforts overlook the disability pay gap, especially for disabled women.

·         Fact…, there are more women with disabilities than men with disabilities across all age groups, and they make about 72 cents for every dollar earned by disabled men. According to recent statistics, disabled women are also far less likely to be employed than nondisabled women. Over the past many years, the disabled community have been disproportionately affected by unemployment and wage disparities compared to nondisabled populations. Our disabled community is more likely to have self-employed and part-time workers than nondisabled populations for a variety of reasons being: The flexibility, or even the asset limits put in place to receive benefits under Social Security. The women’s pay gap is particularly prominent. People with disabilities make an estimated 68 cents for every dollar earned by nondisabled people, and the disability wage gap is not just an American problem, but one that occurs worldwide.

 

Closing Statement:

As a woman with a disability, it’s disappointing, very hard to understand, and to accept that we/us/them are paid less money than our peers without disabilities. This includes being paid less money than men with various disabilities. It shouldn’t matter if a male or female, disabled or nondisabled works at a local convenience store cleaning up, making coffee, sandwiches, being employed by a retail store chain stocking shelves or putting items on hangers, pumping gas, janitorial work, a factory worker assembling parts, an office worker doing various administrative work (with or without accommodations), or a professional white-collared position doing the same job. It is totally unfair for a college student working part time in either a convenience store or retail store doing the same job as someone disabled and the college students are paid more money.  If you are being paid to clean up the same type of mess or putting items on a hanger, it is the same work, so therefore it should be the same pay. It shouldn’t matter if a disabled person needs to sit in a wheelchair, requires a special desk, uses a technology device or software to do their job. If you can do the job, you should be paid equally for it (taking in consideration similar years of experience and education). The Americans with Disabilities Act (ADA) promises nondiscrimination or a ban against discrimination for workers with disabilities, but it seems to me that it falls short of the fulfillment of its obligations that it states. Although, wage disparities continue because of a variety of factors, including disability, race, gender, etc., it needs to end. Unfortunately, I think it will be a while until the U.S. Government will help in this matter to amend our very old and outdated bills and laws to truly help and support people with disabilities. These days, our government officials seem to have their own “personal agendas” instead of fulfilling their promises of keeping the best interests of our country and ALL OUR CITIZENS, disabled and nondisabled. Well, I think I’ve said enough regarding this matter and I hope all reading this understand and possibly agree with my thoughts. Please feel free to message me, comment, and read other articles I’ve written concerning disabilities in the workplace. My blog has new articles posted every Monday morning, I hope you can stop by and share your feelings and opinions.

 

Source of Information: Various Google Searches, Legal Articles, U.S. Department of Labor, Topic Related Blogs, Personal Experiences and Comments.

 

Until Next Week, Stay Safe and Well!      

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