Transformation to Competitive Integrated Employment Act
Congress Proposes Ending Subminimum Wages for Thousands of Workers with Disabilities
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill aims to stop the practice of paying people with disabilities less than the federal minimum wage. It would phase out 'special certificates' that currently allow some employers to pay these workers based on their productivity rather than a set hourly rate.
- The plan would gradually raise wages for affected workers over a five-year period. Starting 90 days after the bill passes, wages would be set at 60% of the minimum wage, increasing every year until they reach 100% of the full minimum wage by the fifth year.
- To help with this change, Congress would provide $200 million each year from 2026 through 2030. These grants would go to states and businesses to help them redesign their programs so they can support workers with disabilities in regular jobs with fair pay.
- As soon as the bill becomes law, the Labor Department would be banned from giving out any new certificates for subminimum wages. This ensures that no new businesses can start paying workers with disabilities less than the standard rate.
- The bill also funds support services to help people with disabilities succeed in their communities. This includes job coaching and training to make sure workers have the tools they need to move into standard workplace settings alongside coworkers without disabilities.
Impact Analysis
Personal Impact
Life & Work
Small businesses that currently hold Section 14(c) certificates and employ workers with disabilities at subminimum wages would need to transform their entire business model within five years. While grants of $200,000 to $750,000 are available to help with the transition, some small sheltered workshops may struggle to remain financially viable when required to pay full minimum wage. The ban on new certificates also prevents any new businesses from using this model.
Programs
Disabilities
Milestones
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articlesSubminimum wage to stay in place for disabled workers
The Trump administration withdrew a Biden-era rule that would have phased out the practice of paying workers with disabilities below the federal minimum wage. The decision preserves Section 14(c) certificates, which currently allow roughly 35,000 workers to be paid based on productivity.
Efforts continue to eliminate subminimum wage among workers with developmental disabilities
Following the Department of Labor's withdrawal of a phase-out rule, disability advocates are shifting focus to the bipartisan Transformation to Competitive Integrated Employment Act. The bill would provide grants to help employers transition to models paying at least the full minimum wage.
Trump Administration Squashes Plan To End Subminimum Wage Employment Of People With Disabilities
The Labor Department is pulling a proposed rule that sought to phase out subminimum wage employment, citing a lack of statutory authority. In response, lawmakers reintroduced the Transformation to Competitive Integrated Employment Act to end the practice through legislation over five years.
Source Information
Document Type
Congressional Bill
Official Title
Transformation to Competitive Integrated Employment Act
Data Sources
Sponsor
Cosponsors
(7)Analysis generated by AI. Always verify with official sources.