Sponsors (7)
The bill shifts federal policy and funding to phase out subminimum wages and expand competitive, integrated employment for people with disabilities—raising wages and civil‑rights protections while imposing transition costs, administrative burdens, and short‑term risks for some workers and providers.
People with disabilities will gain substantially expanded access to competitive, integrated employment and supports instead of subminimum-wage certificate jobs, improving inclusion and long-term job prospects.
People with disabilities will see pay increases — including a phased path to at least the higher of federal/state minimums and to the full federal minimum within four years — raising incomes for formerly subminimum‑paid workers.
States, nonprofits, and employers will receive federal grant funding and dedicated appropriations (including $50M/year FY2026–2031) to support transitions to integrated employment, reducing some local fiscal burden for implementation.
Employers, state agencies, and taxpayers will face increased costs to raise wages, provide integrated supports, and administer transitions, which could strain budgets and affect hiring or service levels.
Some people with disabilities may experience short‑term disruption or risk losing existing placements as providers and employers restructure or close programs during the transition to integrated employment.
State agencies and local providers will face significant administrative and capacity burdens (applications, reporting, HCBS program changes), which could divert resources from direct services or delay implementation.
Based on analysis of 13 sections of legislative text.
Phases out FLSA §14(c) subminimum wages over four years, bars new certificates, funds state grants/technical assistance, and requires evaluations and HCBS-compliant supports.
Introduced July 25, 2025 by Robert C. Scott · Last progress July 25, 2025
Requires the Department of Labor to fund and support state and other programs that help employers stop using FLSA §14(c) special certificates and move workers with disabilities into competitive integrated employment. It phases up the permitted subminimum wage over a four-year period to reach the full applicable minimum wage, bans new special certificates, sunsets existing certificates after the phase-in, and provides grants, technical assistance, and evaluations to support transitions and track outcomes. Authorizes $50 million per year (FY2026–2031) to carry out grant programs, a single national technical assistance award, and multi-year evaluations and reporting. The law sets reporting and data requirements, requires services funded to comply with the HCBS rule, and defines key terms like competitive integrated employment and integrated services.