Sponsors (8)
Official title: To assist employers providing employment under special certificates issued under section 14(c) of the Fair Labor Standards Act of 1938 in transforming their business and program models to models that support individuals with disabilities through competitive integrated employment, to phase out the use of such special certificates, and for other purposes.
Introduced July 25, 2025 by Robert C. Scott · Last progress July 25, 2025
The bill accelerates wage parity and expands integrated employment and protections for people with disabilities through federal funding, technical assistance, and stronger standards, at the cost of higher public and private transition expenses, administrative burdens, and short‑term risks of disrupted employment for some affected workers.
People with disabilities will see wages rise: workers paid under special certificates will get phased pay increases and will receive at least the higher of federal or state/local minimum wage, moving many toward wage parity within four years.
The bill ends the long‑standing legal basis for subminimum wages by phasing out §14(c) (banning most new certificates and sunsetting authority after four years), which expands labor protections and civil rights for workers with disabilities.
More people with disabilities will gain access to competitive, integrated employment and wraparound supports through funded transition models, employer technical assistance, and state/local workforce alignment.
Workers with disabilities risk short‑term job loss or reduced hours/options if some employers cannot absorb higher wages or choose to close certificate‑based programs during the transition.
Raising wages and meeting integrated‑service standards will increase labor and program costs for employers, state agencies, and providers, potentially prompting reduced hiring, service cuts, or operational restructuring (especially for small employers and nonprofits).
The federal cost of new grants and programs (including roughly $300M over FY2026–2031 and ongoing appropriations language) creates budgetary pressure and could increase taxpayer commitments or compete with other priorities.
Based on analysis of 13 sections of legislative text.
Phases out FLSA §14(c) special certificates over four years, funds State grants and national assistance to move workers with disabilities into competitive integrated employment, and requires reporting and evaluation.
Creates a federal program to help employers stop using FLSA §14(c) special certificates that allow subminimum wages for some workers with disabilities and to move those workers into competitive, integrated employment. It provides competitive grants to States and eligible entities, a national technical assistance grant, evaluation and reporting requirements, and a four-year phase‑out of special‑certificate wage authority with a short wage phase‑in schedule. Requires employers receiving support to pay transformed employees at least the applicable federal or state minimum wage (or the employer’s customary rate for similar non‑disabled employees, if higher), funds integrated community supports consistent with HCBS rules, bans new special certificates, and sunsets existing certificates after the transition period. Authorizes $50 million per year for FY2026–2031 to implement the program and related activities.