Sponsors (8)
Official title: 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 people with disabilities through competitive integrated employment, to phase out the use of such special certificates, and for other purposes.
Introduced July 24, 2025 by Christopher Van Hollen · Last progress July 24, 2025
The bill shifts people with disabilities from subminimum-wage certificate jobs toward higher, minimum-wage and integrated employment supported by federal funding and technical assistance, at the cost of higher labor and administrative costs for employers, providers, governments, and taxpayers and with risk of short-term disruption for some workers.
People with disabilities will receive higher wages as special-certificate pay is phased up to at least the applicable federal or state minimum and current higher wages are preserved, increasing income and reducing poverty risk.
People with disabilities will gain increased access to competitive, integrated employment and related supports through funded programs, technical assistance, and dissemination of proven transformation models.
States, local workforce systems, providers, and employers will receive federal funding and technical assistance to redesign business and program operations and build capacity for integrated employment, easing transition costs.
Employers (especially small providers) will face higher labor costs as special-certificate wages rise and certificates are phased out, which may reduce hiring, shrink services, or cause closures and thereby risk job losses.
People with disabilities may experience gaps in income, reduced placements, or insufficient supports during the transition if community services, funding, or employer positions are inadequate.
States, local agencies, and service providers will face increased administrative, reporting, and compliance burdens that could divert staff time and funds away from direct services.
Based on analysis of 13 sections of legislative text.
Phases out 14(c) special certificates over five years, raises wage floors, and funds grants and technical assistance to shift workers with disabilities into competitive integrated employment.
Creates a federal program to phase out use of FLSA 14(c) special certificates that allow paying people with disabilities subminimum wages, require wage increases on a 5-year schedule, bar new certificates, and void existing certificates after five years. It funds competitive-grant programs, technical assistance, and multi-year evaluation to help employers, states, and service systems move people with disabilities into competitive integrated employment and community-based supports, and it authorizes $200 million per year for FY2026–2030.