Why are disabled people paid much less than other workers in the US?

The last half-century has seen a marked change in diversifying the workplace. Landmark legislation, such as the Equal Pay Act of 1963 and the Pregnancy Discrimination Act 15 years later, have made great strides in fighting against discrimination against women in work.

Though certainly not a completed endeavour, the attitude change in support of women needs to be replicated for disabled workers. Despite ongoing efforts to promote inclusivity, recent findings reveal a significant disparity in earnings between disabled and non-disabled workers. There are 7.5 million workers with disabilities in the US.

Atticus, a law firm specialising in disability and senior support, studied US Census Bureau data to assess the situation of more than 1,000 workers, both those with and without disabilities. The report is here in full.

Disabled workers are regularly treated worse than non-disabled workers

The headline figure from the survey is that non-disabled workers make 42% less than the average, $13,000 a year less to be specific. While this isn’t necessarily being underpaid in the same role, the problem here is that disabled workers are not being given the same opportunities to break in to the highest-paying roles in the US. This is reinforced with the stastic that workers with disabilities are 10% less likely to have received a pay raise in the past year.

Using the data gathered from their survey, Atticus found that workers with disabilities have over 50% more financial stress, in part due to a 75% higher risk of unexpected job termination. These financial issues combined mean they are over 60% less likely to contribute to monthly savings compared to workers without disabilities. This entrenches the wealth disparity between the two worker groups.

Significantly, 44% of workers with disabilities depend on at least three income sources to afford life in a country wracked by inflation and high interest rates over the last three years..

“The persistent earnings disparities, compounded by systemic discrimination and the necessity to juggle multiple jobs, underscore the critical need for change,” said James Campigotto, Creative Strategist for Atticus.

Why are disabled workers paid less?

The Fair Labor Standards Act (FLSA) should prevent employers from paying disabled workers less than other workers. However, the FLSA does allow for the use of special minimum wage certificates for individuals with disabilities, referred to as Section 14(c) certificates. These certificates are issued by the Department of Labor (DOL) and allow employers to pay subminimum wages to workers with disabilities when certain conditions are met.

Qualifying for support schemes from the federal government also has problems. The earning threshold for Social Security Disability Insurance (SSDI) is up to $1,550 a month in 2024; earning over that means financial support is sapped away.