Advocates concerned about workers with disabilities earning below minimum wage

Amna Nawaz:

Only about 20 percent of people with disabilities in the U.S. have a job, and some with intellectual and developmental disabilities are paid less than the federal minimum wage. Last week, the Labor Department said it's reviewing the policy, allowing that.

Judy Woodruff went to Minnesota to learn what the disability community thinks for our series Disability Reframed.

Judy Woodruff:

Thirty-one-year-old Erik Marschel is into all kinds of sports, but the Gophers are one of his favorite teams. He loves his job greeting and guiding fans at the University of Minnesota football games.

Erik Marschel, Employee (through computer voice):

Can I please see your ticket?

Judy Woodruff:

Erik has cerebral palsy and apraxia, which limits his ability to speak. He understands others, but often uses a communication device to express himself.

He visited six different employers with his dad before finding this job and earns $17 an hour, like the rest of his co-workers.

Erik Marschel (through computer voice):

It was difficult to get the employer to understand the value I could bring to the job, but I was persistent. It was also hard when changes happened at work, but, with patience and training, I was able to succeed.

Judy Woodruff:

Before this, Marschel worked in what's known as a 14(c) program, where he was paid below minimum wage to place labels on bags of bagels.

Franklin Roosevelt, President of the United States: In the working out of a great national program…

Judy Woodruff:

Section 14(c) of President Franklin Roosevelt's Fair Labor Standards Act made it legal to pay workers with disabilities less than the federal minimum. It was designed to help wounded war veterans get access to jobs.

There are now some 42,000 people in 14(c) work nationwide. The average hourly wage of a person working in the program is $4.15, but more than half earn less than $3.50.

Kevin Marschel, Father of Erik Marschel: It was strange because we'd get these little checks for 14 cents, 15 cents, things like that, and I'm going, oh, what is he doing exactly here?

Judy Woodruff:

Kevin Marschel says, while some of his son's first jobs were training opportunities, he was surprised by just how little Erik was earning.

Kevin Marschel:

I guess the other side of it was that he was ready and able for some more challenges. Essentially, he can't walk or talk, yet he has the ability to get out there and do a job of this structure and type.

And it's all about to have the right training and the right supports around him.

Judy Woodruff:

Supports like his fellow co-workers and job coaches that step in if Erik needs help.

Today, almost all 14(c) workers have an intellectual or developmental disability, and critics have long said no one should be paid that little. Two years ago, the Minnesota state legislature set up a task force to create a plan to phase out 14(c) programs, while 17 states have taken action to phase out 14(c).

Jillian Nelson, Task Force on Eliminating Subminimum Wages: The issue around increasing wages for people with disabilities is really just a human rights issue.

Judy Woodruff:

Jillian Nelson was diagnosed with autism when she was 21. Today, she co-chairs Minnesota's Task Force on Eliminating Subminimum Wages, a group that has called for a slow phaseout of the 14(c) program.

Jillian Nelson:

When it happens suddenly and without planning, that's when people's lives crumble. It was very important to me to make sure that, when Minnesota pursued this, that we had a plan, we had investment, we had support, so that when we ended subminimum wage in Minnesota, everybody was protected.

Judy Woodruff:

But, 200 miles north of Minnesota west of Minneapolis, in small town Park Rapids, Minnesota, 32-year-old Laura Kovacovich says 14(c) has been a crucial lifeline.

Laura has autism and obsessive compulsive disorder, among other disabilities. Since 2013, she has worked at the barely used thrift store.

What do you really love about this job?

Laura Kovacovich, Employee:

What I love pricing and shelfing, going — items, and putting them out on the shelves.

Judy Woodruff:

Putting on the shelves.

Laura Kovacovich:

And I sort the items that I call unsellable items.

Judy Woodruff:

Laura has become an employee the store can count on. She makes around $5 an hour.

Laura, if you couldn't do some of the jobs that you do now, what would you think about that? How would you feel about that?

Laura Kovacovich:

I'd be very sad if I could no longer work there. I can't and don't want to work in a competitive job in a competitive community, because job supervisors who don't understand my disabilities would not know what to do if I get upset or anxious easily.

Judy Woodruff:

Laura got this job and another one making rugs through the Hubbard County Developmental Achievement Center, or DAC. The nonprofit provides day programs and job services to people with disabilities.

Wages here are dependent on productivity levels, a process that is approved by the U.S. Department of Labor. Twice a year, employees undergo a wage review. And the center is also required to talk to them about other employment opportunities.

While some workers make below $4 an hour, others will make up to $10.59, Minnesota's minimum wage. After several years on the rug-making team, two of which she's worked the loom, Laura began making $10.59 this year. She says the decision to work is all her own.

Laura Kovacovich:

My work, my life, my home, my choice.

(Laughter)

Dawn Kovacovich, Mother of Laura Kovacovich: It should be your choice, right.

Judy Woodruff:

Laura's mother, Dawn Kovacovich, says her daughter requires constant support staff, and most competitive work isn't an option for people with severe disabilities.

Dawn Kovacovich:

Some of them need diaper changes. Some people need assistance with seizures. Others, like Laura, have to have somebody there every minute in case there's an anxiety issue.

You can't just stick somebody in a rural community like this in some job and say, well, here, accommodate them. You're not going to find an employer who can handle that.

Judy Woodruff:

Dawn says, without the 14(c) program, Laura would spend all her time in day services or at home.

But Jillian Nelson says, under the task force plan, places like the DAC can keep giving people work as long as they're all paid minimum wage.

Jillian Nelson:

We are not saying anyone has to change where they spend their time or how they spend their time. We don't want to take away the choice. We have provided support for programs to figure out how to change their business model, so they can continue doing things the way they're doing them now, but just paying people more money.

Judy Woodruff:

But Dawn told us, because her daughter's living expenses are covered through Medicaid, that her jobs aren't just about the money.

One would think that earning at least the minimum wage would be seen as a fair thing to do, but you're saying that's not right.

Dawn Kovacovich:

Fair does not mean equal. It does not mean exactly the same for you as it does for me, because we have different needs. It's about having the right to work. And I'm all about equal rights. I think everybody has the right to equality of life, and the right to work will be taken away if we're taking away the sliding wage option.

Gertrude Matemba-Mutasa, CEO, Lifeworks Services:

People with disabilities can bring value to your businesses.

Judy Woodruff:

Back near Minneapolis, Gertrude Matemba-Mutasa the CEO of Lifeworks, a nonprofit that helps people with disabilities find day support services, like volunteering and field trips, and seek paid work options too.

In 2017, Lifeworks came out against 14(c) and stopped connecting clients to jobs that paid less than minimum wage.

Gertrude Matemba-Mutasa:

Eighty-eight percent of the employers we were working with transitioned to minimum wage, and they are thriving.

What really made the difference was really making the business case to employers to say, think of this as part of your diversity strategy, bringing in diverse employees who are going to have unique life experiences, unique skills and can add a tremendous amount of value.

State Sen. Paul Utke (R-MN):

They're not capable of putting out the job performance that people typically making minimum wage and above are getting.

Judy Woodruff:

But former business owner and Minnesota State Senator Paul Utke says most employers can't afford that business model.

State Sen. Paul Utke:

You have got to make things — at the end of the day, make things work pay-wise. I mean, what's your output versus your investment?

We're all paid for what we can do. Their reimbursement is kind of based on what they're being able to put out.

Judy Woodruff:

In Minneapolis, Erik works eight hours a week, on average, and hopes to increase that time. For now, he has a job he loves and a paycheck he says he spends on those who love him.

Erik Marschel (through computer voice):

I really like to be able to buy my parents things for their birthdays. It makes me feel proud to provide for my needs.

Judy Woodruff:

What would you want other people who have disabilities to know?

Erik Marschel (through computer voice):

I am sharing my story to help make sure other people with disabilities can find success as well. Don't be afraid. It may take some time, but it is worth it.

Judy Woodruff:

Just what opponents of 14(c) programs want to hear, even as some families worry other meaningful jobs for people with disabilities will go away.

For the "PBS NewsHour," I'm Judy Woodruff in Minneapolis and Park Rapids, Minnesota.