Utah Policy Brief on H.B. 205
Utah's Legalized Exploitation of Disabled Workers: Ending Subminimum Wage
This policy brief examines H.B. 205, a 2024 Utah legislative bill that would have ended the practice of paying disabled workers subminimum wages. In Utah, over 600 disabled individuals working in facilities authorized under Section 14(c) of the Fair Labor Standards Act earn an average of $3.50 per hour, less than half the federal minimum wage. A 2024 Department of Justice report found that Utah violates federal civil rights law by unnecessarily segregating people with intellectual and developmental disabilities in sheltered workshops while paying them subminimum wages.
Research shows that these programs do not lead to economic prosperity. Instead, workers remain segregated from their communities with limited opportunities for career advancement. Only 2.3% of workers in these facilities ever transition to competitive integrated employment. The brief outlines how H.B. 205 would have provided fair wages, increased community inclusion, improved health outcomes, and cost less than current workshop models. It also highlights that 18 states have already eliminated subminimum wage practices, demonstrating that systemic change is possible.
This resource includes policy recommendations, community resources, and actionable steps for advocating for dignified employment opportunities for disabled workers in Utah.
