House Republicans Take Disability Employment Hearing to Wisconsin, Defending Subminimum Wage Programs

Why it matters

The House Education and the Workforce Committee held a field hearing on February 13, 2026, in Beaver Dam, Wisconsin — not Washington — to build a public case for preserving programs that allow employers to pay workers with disabilities below the federal minimum wage. The disability employment hearing, titled "Work, Dignity, and Choice in Disability Employment," came seven months after the Trump administration's Department of Labor withdrew a Biden-era rule that would have phased out Section 14(c) certificates — effectively punting the question to Congress. The witness panel was stacked 3-to-1 in favor of keeping the program, and the committee's own social media promoted testimony that "debunks efforts to destroy disability employment opportunities."

The big picture: A decades-old policy under growing pressure

Section 14(c) of the Fair Labor Standards Act, enacted in 1938, allows employers holding special certificates from the U.S. Department of Labor to pay workers with disabilities below the federal minimum wage based on productivity assessments. Critics say workers can legally earn as little as $0.25 per hour. Supporters say the programs provide meaningful work and community for people who might otherwise have no employment at all.

The disability employment policy landscape shifted in December 2024 when the Biden administration proposed phasing out 14(c) certificates entirely. That proposed rule drew thousands of public comments on both sides. Then in July 2025, the Trump DOL formally withdrew the proposal, arguing the executive branch lacks statutory authority to unilaterally terminate a program Congress wrote into law.

That withdrawal preserved the status quo but did not settle the debate. Both chambers of the 119th Congress have introduced versions of the Transformation to Competitive Integrated Employment Act — H.R. 4771 and S. 2438 — which would phase out subminimum wages over five years while funding transition support. Meanwhile, over a dozen states have already moved independently to ban or restrict subminimum wage disability employment.

A coalition of 66 disability rights organizations condemned the Trump DOL withdrawal in July 2025. The National Association of Councils on Developmental Disabilities declared: "The time has come to end the practice of paying sub-minimum wages."

On the other side, the Coalition for the Preservation of Employment Choice — which spent $120,000 lobbying in 2025 against the Transformation Act and the Raise the Wage Act — argues that eliminating 14(c) certificates would close facilities and destroy jobs.

What they're saying: Disability work, dignity, and choice at the center

The hearing was held at Green Valley Enterprises in Beaver Dam, in the district of Rep. Glenn Grothman (R-WI-6), who delivered the opening statement. He framed the stakes bluntly:

• "Without section 14(c), they would likely be forced to lay off all employees and close their doors permanently," Grothman said of Wisconsin's 40-plus 14(c) employers.
• Erasing 14(c) "would erase people's jobs and would take away the community and friends that they love," he added.

The committee's recap noted that "excitement and pride radiated in the room" as workers and families gathered — a description that underscored the majority's framing.

Four witnesses testified. Kit Brewer, Vice President of the Coalition for the Preservation of Employment Choice, is the most prominent national voice defending 14(c) certificate disability employment. He also serves as Executive Director of Project CU, a sheltered workshop in St. Louis. A Bloomberg investigation identified him as the industry's leading public advocate.

Barbara LeDuc, President and CEO of Opportunities, Inc., brought four decades of vocational rehabilitation experience. Her organization operates in Beaver Dam — the hearing's host city — and holds a 14(c) certificate. She also serves on the board of SourceAmerica, a national nonprofit connecting disability employers with federal contracts.

Dr. Laura Owens, a professor at the University of Wisconsin-Milwaukee and President of TransCen, Inc., served as the panel's counterpoint. Her written testimony explicitly supported the Transformation to Competitive Integrated Employment Act, arguing it "builds on WIOA's emphasis on competitive, integrated employment by phasing out the payment of subminimum wages."

Kathy Armstrong, a Beaver Dam parent whose child works under a 14(c) certificate, provided personal testimony. Her written statement put a human face on the pro-preservation argument.

The full hearing transcript has not been made publicly available, limiting visibility into specific exchanges between members and witnesses.

Political stakes in the disability employment hearing

The hearing's design tells its own story. Committee Chair Rep. Tim Walberg (R-MI-5) chose to hold it in a Republican district, at a facility that uses 14(c) certificates, with a witness panel tilted toward preservation. This is consistent with the Trump administration's position — which preserved 14(c) by withdrawing the Biden-era rule — but placed the policy question squarely before Congress.

For Ranking Member Rep. Bobby Scott (D-VA-3) and committee Democrats, the field hearing format presented a challenge. Arguing against a program in a room full of its beneficiaries and their families requires careful messaging. Democrats broadly support phasing out subminimum wages as a civil rights issue, but the optics of telling local workers and parents that their program should end are politically difficult.

The Coalition for the Preservation of Employment Choice spent $30,000 in the fourth quarter of 2025 alone lobbying against H.R. 4771 and S. 2438 through K&L Gates LLP. Neither Opportunities, Inc. nor TransCen appears in federal lobbying records, and neither organization made federal campaign contributions — consistent with their nonprofit status.

Wisconsin is a perennial battleground state. Disability employment policy resonates with caregiving families and suburban voters — constituencies both parties are courting.

The other side

Disability rights advocates view 14(c) as legalized discrimination. Disability Belongs™ called it "The Civil Rights Fight Hidden in Your Paycheck" in January 2026. The National Council on Disability, an independent federal agency, has called for ending 14(c) for years.

Dr. Owens' testimony represented this view on the panel. TransCen, Inc. promotes competitive integrated employment — the model where people with disabilities work in mainstream settings at or above minimum wage. Proponents point to states that have already eliminated subminimum wages without the catastrophic job losses that defenders predict.

The Federal Register notice withdrawing the Biden rule summarized the reform argument: commenters said "the payment of subminimum wages is an unfair, antiquated, and discriminatory pay practice" and that 14(c) certificates are "no longer necessary," as demonstrated by states that have already moved away from them.

What's next

The hearing builds a record that could inform several legislative vehicles. The Workforce Innovation and Opportunity Act is due for reauthorization — and any WIOA bill could include provisions addressing 14(c). The Transformation to Competitive Integrated Employment Act sits in this committee's jurisdiction. Fiscal year 2026 appropriations for the Labor Department could also include riders affecting 14(c) enforcement or new certificate issuance.

No markup has been scheduled. The committee has not announced follow-up hearings on the topic.

The bottom line

The Trump administration handed Congress the 14(c) question by withdrawing the regulatory phase-out — and the House Education and Workforce Committee is using field hearings to shape the answer on its own terms.

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