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Congress·In Committee

Congress Proposes Ending Subminimum Wages for Thousands of Workers with Disabilities

Transformation to Competitive Integrated Employment Act

8 months ago·View on Congress.gov

Legislative Progress

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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.
Labor EmploymentCivil RightsHealthcare

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Jul 24, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Jul 24, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

90 days after enactment

Subminimum wages must rise to at least 60% of the federal minimum wage, and no new subminimum wage certificates can be issued

Workers with disabilities currently earning pennies per hour would see an immediate pay bump, and no new employers could start paying below minimum wage

5 years after enactment

Wages for workers under special certificates must reach 100% of the federal minimum wage, and all special certificates expire permanently

The practice of paying workers with disabilities below minimum wage officially ends nationwide — every affected worker must earn at least minimum wage or be transitioned to a regular community job

Related News

3 articles
New York Times·8 months ago

Subminimum 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.

CL~
Texas Public Radio·7 months ago

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.

C=
Disability Scoop·8 months ago

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.

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Source Information

Document Type

Congressional Bill

Official Title

Transformation to Competitive Integrated Employment Act

Bill NumberS 2438
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsor

Cosponsors

(7)
D: 3R: 4

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.