In Oklahoma City, dozens of employees with disabilities spend their days carefully packaging products at the Dale Rogers Training Center. It’s one of many sheltered workshops in the state that operates under a federal waiver allowing employers to pay less than minimum wage.
These waivers, known as Section 14(c) certificates, were established in the 1930s to create job opportunities for people with disabilities. Today, critics argue they’re outdated and unfair, while supporters say they provide structure and purpose for those who might otherwise be unemployed.
While the U.S. Department of Labor recently withdrew proposed rules to phase out 14(c) certificates, more than a dozen states have already ended or restricted their use. Oklahoma has not—yet.
This year, state lawmakers approved a plan to form a task force to explore transitioning Oklahoma’s 1,200 subminimum-wage workers into minimum wage jobs or day programs. The task force is expected to begin work in 2026, with recommendations due by the end of 2027.
Advocates say the success of such a shift will depend on whether the state can provide viable alternatives. For some families and providers, the concern is that eliminating subminimum wage jobs could leave individuals with complex disabilities without employment or daily support.
Oklahoma has 40 employers that currently use or have applied for 14(c) waivers. Pay rates are calculated based on a worker’s productivity compared to someone without a disability. The average wage is $4.08 an hour, and about 90% of workers have intellectual or developmental disabilities.
Although subminimum wage employment has declined nationwide, Oklahoma has taken a slower approach. Mark Kinnison, of the Oklahoma Department of Rehabilitation Services, said employment alternatives are being explored but will require more resources and staffing.
One potential outcome is for employers to raise wages without changing their programs. Others may develop new services, or close if unable to cover the increased cost.
The Dale Rogers Training Center, the state’s largest 14(c) employer, has already begun voluntarily moving away from subminimum wages, offering clients roles in janitorial work, screenprinting, and manufacturing—all paying at least minimum wage.
But not all providers are in the same position. Rachel McVay, executive director of 4RKids in Enid, said her program may have to cut participants if forced to raise wages. The organization serves about 50 people and operates a mini golf course, gift shop, and other small businesses, but lacks the space or funds to expand into adult day services.
“Phasing out 14(c) makes total sense in theory,” McVay said. “I just hope the task force can find a way to support those who can’t hold competitive jobs.”
Wanda Felty, a longtime advocate, agrees with ending 14(c) but acknowledges the concerns of families who fear their loved ones might lose needed structure or benefits. While officials say benefit loss is rare, many still worry.
Rebekah Reynolds, whose son has a severe disability, told lawmakers last year that his 14(c) job is a meaningful and sustainable option. “It’s a viable and robust setting,” she said.
Oklahoma has been recognized as a national leader in helping people with disabilities obtain competitive employment. The state spent nearly $24 million last year on employment services. Still, program leaders caution against abrupt change.
Melissa Gituma of Developmental Disability Services said the agency has offered incentives for providers to voluntarily raise wages, and plans to support providers through any future transition. “We believe in the shift—we just don’t want to take any options off the table,” she said.
ThinkAbility, a provider in Duncan, ended its use of 14(c) waivers in 2020. Executive Director Robin Arter said the change came after concerns about “pretend work” and disengagement. Now, individuals work at a café, gift shop, screenprinting shop, and garden.
While the transition was difficult—requiring cost absorption and sparking fears of benefit loss—many workers have thrived. Higher wages allowed some to save money, buy a car, or even get married and purchase a home.
“We had to teach people to dream about what they could save for,” Arter said.
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