Sponsors (8)
The bill shifts people with disabilities toward higher, minimum‑wage competitive employment and funds supports and technical assistance to make that transition possible, but it imposes higher labor and administrative costs, transitional risks for workers and small providers, and new federal spending that could produce local gaps or legal challenges.
People with disabilities will see higher pay: workers currently paid under 14(c) will reach at least applicable minimum wage over a multi-year phase-in (and individual pre‑enactment wages are preserved), increasing incomes and reducing poverty risk.
People with disabilities will gain greater access to competitive, integrated employment and wraparound community supports through priority services, HCBS‑aligned supports, and new funding targeted to transitions out of subminimum‑wage work.
The bill accelerates the end of the 14(c) subminimum‑wage system (sunset and bar on new certificates) and focuses federal policy on competitive integrated employment, simplifying long‑term enforcement and signaling a clear nationwide transition.
Small employers and some service providers will face substantially higher labor and compliance costs, which could lead to reduced hiring, elimination of positions, contraction of services, or business closures.
Workers with disabilities risk short‑term income or service gaps and potential job losses during the transition if community supports, placements, or funding are insufficient to absorb displaced workers.
State and local agencies, providers, and federal offices will face added administrative, reporting, and program‑design burdens that could divert staff time and funds from direct services.
Based on analysis of 13 sections of legislative text.
Phases out FLSA 14(c) certificates over five years, steps up subminimum wages to full minimum, and funds grants/technical assistance to transition workers with disabilities to competitive integrated employment.
Introduced July 24, 2025 by Christopher Van Hollen · Last progress July 24, 2025
Requires employers who use FLSA section 14(c) special certificates to move workers with disabilities into competitive integrated jobs and phases out the certificate program over five years. Creates federal grant programs, technical assistance, audits, and an evaluation, raises subminimum wages stepwise to the full minimum, bans new certificates, and authorizes $200 million per year for FY2026–2030 to support transitions and community services.