Sponsors (6)
Introduced July 25, 2025 by Robert C. Scott · Last progress July 25, 2025
The bill shifts people with disabilities away from subminimum-wage certificate programs toward paid, integrated employment with funded supports, stronger oversight, and aligned standards—while imposing higher labor and administrative costs, fiscal outlays, and transitional risks that could disrupt some workers and small providers in the short term.
People with disabilities previously paid under 14(c) will be paid at least the applicable minimum wage (phased in over up to 4 years), raising earnings for many workers with disabilities.
People with disabilities will receive funded supports, employer technical assistance, and evidence-based tools to find and retain competitive, integrated employment, improving long-term job prospects and independence.
The bill provides dedicated federal funding (e.g., $50M/year FY2026–FY2031 and other grants) to support integrated community services, workforce transformation, and employment supports for people with disabilities.
Small employers and program operators face higher labor costs and operational changes that could lead to reduced hiring, layoffs, or business/program closures, potentially displacing some workers with disabilities.
Workers with disabilities risk short-term disruption or loss of employment if adequate community-based supports and alternative placements are not available when programs close or employers change models.
States, local agencies, employers, and nonprofits will face added administrative, reporting, and compliance burdens (plan revisions, data collection, meeting multiple federal standards), straining staff and budgets.
Based on analysis of 13 sections of legislative text.
Phases out subminimum-wage 14(c) certificates over four years, funds state grants and national technical assistance, and requires transitions to competitive integrated employment with HCBS‑compliant supports.
Creates a federal program to phase out subminimum-wage employment under FLSA section 14(c) and help employers and states move people with disabilities into competitive, integrated jobs with community-based supports. It funds state grants, a national technical‑assistance grant, and a multi‑year evaluation, and it phases up allowed subminimum wages over four years before ending the authority to issue or use 14(c) special certificates.