California Disability Minimum Wage Increase

Starting in 2025, California will ban the practice of paying subminimum wages to individuals with intellectual or developmental disabilities. Under the current system, there are "Sheltered" disability programs, where people can be paid between $3 to $14 per hour depending on their speed.

There is a debate in California’s disability community about the opportunity for everyone with a disability to be able to find a job in the broader labor market and whether this should be the goal. While some people with disabilities appreciate the steady tasks, guaranteed hours, and company of coworkers that come with sheltered employment; the opponents of subminimum wage programs argue that they segregate individuals with disabilities, preventing them from obtaining better-paying work.

The shift to the minimum wage may impact local businesses and nonprofits that currently contract with sheltered workshops. The state's Department of Developmental Services is ramping up funding to help transition workers from subminimum wage workshops to "Competitive Integrated Employment" where they would earn at least minimum wage alongside coworkers who don't have disabilities.