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Phasing Out Subminimum Wages for Disabled Workers: Grants for Integrated Employment.

This Act aims to phase out special certificates (Section 14(c) FLSA) that allow employers to pay people with disabilities less than the minimum wage. Over five years, all employees under these certificates must transition to earning at least the federal minimum wage. The government provides grants to states and employers to support this shift toward competitive, integrated employment models, ensuring fair pay and community inclusion.
Key points
Wage Increase: Over a 5-year period, disabled workers currently earning subminimum wages must transition to earning at least the federal minimum wage (or higher state/local rate).
Certificate Sunset: Special certificates allowing subminimum wages will expire and cease to have legal effect 5 years after the Act's enactment; no new certificates will be issued.
Financial Aid: States and employers are eligible for grants (up to $15 million for states) to transform their business models to provide competitive integrated employment for people with disabilities.
Integrated Services: The law mandates the provision of integrated community participation and wraparound services to support individuals with disabilities in maintaining employment and maximizing independence.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_S_2438
Sponsor: Sen. Van Hollen, Chris [D-MD]
Process start date: 2025-07-24