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Phasing Out Subminimum Wages for Disabled Workers: Employment Transformation Act

This law gradually eliminates the practice of paying individuals with disabilities less than the minimum wage, previously allowed under special certificates. Over a five-year period starting from the effective date, employees currently under these certificates must transition to earning at least the federal minimum wage. The bill provides grants to states and employers to support this shift toward competitive integrated employment models, ensuring workers receive necessary community support services.
Key points
Wage Increase: Wages for individuals with disabilities currently earning subminimum wages will gradually increase over a five-year period until they reach the full minimum wage rate.
End of Special Certificates: Beginning on the day after the date that is 4 years after the effective date of the transition, the authority to issue special certificates allowing subminimum wages will expire, and existing certificates will lose legal effect.
Grants for Transition: States and employers receive federal grants to transform their business models to provide competitive, integrated jobs and essential integrated community support services for disabled workers.
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Additional Information
Print number: 118_HR_1263
Sponsor: Rep. Scott, Robert C. "Bobby" [D-VA-3]
Process start date: 2023-02-28