Sponsors (6)
Introduced July 25, 2025 by Robert C. Scott · Last progress July 25, 2025
The bill shifts people with disabilities toward wage parity, rights‑based, community integrated employment with federal funding, technical assistance, and transparency—while imposing higher costs, administrative burdens, and short‑term disruption risks for employers, states, and some workers during the transition.
People with disabilities will receive higher and legally protected pay: the bill phases wages up to at least the applicable federal/state/local minimum and sunsets §14(c) authority, moving many workers toward wage parity.
People with disabilities will gain expanded access to competitive, integrated employment and wraparound supports through required transition models, stakeholder involvement, and HCBS‑compliant program design.
Federal grants and dedicated funding (including $50M/year FY2026–2031) provide states, nonprofits, and employers resources to support transitions away from subminimum-wage placements and build community‑based employment supports.
Employers (especially small businesses and some nonprofits) and some state programs will face higher labor and service costs to meet wage and integrated‑service requirements, which could reduce hiring, hours, or financial viability.
Short‑term transition risks: some workers with disabilities may lose placements or experience service disruption if employers or providers restructure, close certificate programs, or cannot absorb increased costs.
Significant administrative, reporting, and compliance burdens on state agencies, employers, and providers (grant applications, data collection, evaluations) could divert resources from direct services and raise operating costs.
Based on analysis of 13 sections of legislative text.
Phases out FLSA §14(c) subminimum-wage certificates over four years, funds state and nonprofit grants and technical assistance to shift workers into competitive integrated employment.
Phases out the FLSA §14(c) system that allows employers to pay subminimum wages to people with disabilities and funds state and nonprofit grants to help employers and workers shift to competitive integrated employment. It sets a four-year wage phase-up for existing subminimum-wage workers, bars new certificates, requires a sunset of the certificate authority, creates grant programs and a single national technical-assistance award, and mandates multi-year evaluations and annual reporting. The bill authorizes $50 million per year for FY2026–2031 to support these changes.