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Amends subparagraph (A) of 29 U.S.C. 214(c)(1) to establish phased minimum-wage floors (percentages of the section 6(a)(1) wage) over a multi-year schedule and to provide an alternative floor based on the wage in effect the day before enactment.
Adds paragraphs (6) and (7) to 29 U.S.C. 214(c): (6) prohibits issuance of new special certificates to employers that were not issued such certificates before the date of enactment; (7) provides a sunset under which the authority to issue special certificates expires and existing special certificates lose legal effect beginning the day after the date that is 5 years after enactment.
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced July 24, 2025 by Christopher Van Hollen · Last progress July 24, 2025
Requires a phased end to the special subminimum-wage certificates under section 14(c) by increasing certified workers' wages to the full minimum over five years, banning new certificates for employers who don't already hold them, and terminating the certificate authority five years after enactment. Creates Department of Labor grant programs, technical assistance, and a multi-year evaluation to help States, employers, and service systems move people with disabilities into competitive, integrated employment and to fund community supports that meet federal home- and community-based services standards.
Assist employers with special certificates issued under section 14(c) of the Fair Labor Standards Act of 1938 to transform their business and program operations to models that support people with disabilities to find and retain work in competitive integrated employment.
Ensure people with disabilities, families of such people, State and local governments, and other stakeholders are involved in the transformations described in paragraph (1).
Ensure people employed in programs using such special certificates transition to competitive integrated employment positions and, as needed, to integrated services that support them in their homes and in community settings.
Identify models and processes for shifting business and program models from such special certificates to competitive integrated employment models and integrated community participation and wraparound services, and share that information with other special certificate holders, State and local entities, and other service providers for people with disabilities.
Support States and local governments as they revise and implement their Olmstead plans and local plans to improve competitive integrated employment outcomes for people with disabilities through all State workforce development systems.
Who is affected and how:
People with disabilities: Directly targeted; the Act aims to increase wages and move people into competitive, integrated employment while funding community supports that meet HCBS standards. Beneficiaries may gain higher pay, greater inclusion in community workplaces, and access to integrated supports—but outcomes will depend on effective local transition planning and availability of supports.
Employers that use 14(c) certificates and sheltered workshops: Face an enforced transition away from paying subminimum wages, bans on new certificates for employers without prior certificates, and a five-year deadline. They may receive grant funding and technical assistance to restructure operations, but they will also face compliance costs, wage bill increases, and administrative reporting and audit requirements.
State and local governments, workforce systems, and HCBS providers: Expected to play central roles in planning and delivering employment services and community supports. The Act funds competitive grants to help states update Olmstead and workforce plans, but states may need to coordinate multiple systems and possibly reallocate resources.
Nonprofits and technical assistance providers: Will participate as grantees and contractors performing TA, evaluations, and workforce-development activities; the Act creates contracting and grant opportunities.
Federal agencies (Department of Labor): Responsible for grant administration, compliance monitoring, reporting, audits, and contracting for evaluations; will bear administrative responsibilities to implement the program.
Potential benefits and risks:
Benefits: Increased wages for workers with disabilities; stronger pathways to competitive, integrated employment; funded supports aligned with HCBS standards; improved data and accountability about employment outcomes.
Risks/challenges: Transition risks for workers if local supports or integrated jobs are not available; financial and operational strain on employers (particularly small nonprofits) who must raise wages; potential job displacement if transitions are mismanaged; administrative burden for employers and government agencies to meet reporting and audit requirements.
Net effect depends on quality of technical assistance, adequacy and timely distribution of grants, coordination among workforce and HCBS systems, and effectiveness of the evaluation and enforcement components to prevent unintended negative outcomes.
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Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced in Senate