Sheltered Workshops and Special Minimum Wage Workers
In 2022, Senate Bill 639 (SB 639) went into effect, ending California’s participation in the federal 14c subminimum wage program waiver for persons with disabilities under Labor Code sections 1191 and 1191.5.
Before SB 639, under Labor Code section 1191, the Labor Commissioner could issue a one-year license to a person with a mental or physical disability, or both, authorizing employment at a wage less than the legal minimum wage.
Before SB 639, under Labor Code section 1191.5(a), the Labor Commissioner could issue a license to a nonprofit organization like a sheltered workshop or rehabilitation facility to employ workers at a special minimum wage.
As a result of SB 639, effective January 1, 2025, Labor Code section 1191 is inoperative, and Labor Code section 1191.5 is repealed. Commencing January 1, 2025, an employee with a disability shall not be paid less than the legal minimum wage required or the applicable local minimum wage ordinance, whichever is higher.
For questions, please email DLSELicensing@dir.ca.gov.
January 2025
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