| Update Applicable to: | Effective Date |
| All Employers | Task Force Must Have Wage Phasing: July 1, 2025 End of Subminimum Wage: December 31, 2029 |
What happened?
On January 21, 2025, Governor JB Pritzker signed the Dignity in Pay Act (HB793) into law, mandating eliminating subminimum wages for employees with disabilities by December 31, 2029.
Overview:
This act phases out Section 14(c) certificates under the Fair Labor Standards Act (FLSA), which allowed certain employers to pay individuals with disabilities less than the federal minimum wage.
- Employers should start planning for the transition to paying employees with disabilities the minimum wage, currently $15.00 per hour in Illinois.
- The Task Force will develop a detailed plan by July 1, 2025.
The Dignity Act for Employers:
- Five-Year Phase-Out: Led by the Illinois Department of Human Services (IDHS), the Illinois Council on Developmental Disabilities (ICDD), and the Illinois Department of Labor (IDOL).
- Transition Grants: These are available to help employers integrate individuals with disabilities into competitive employment.
- Increased Personal Needs Allowance: The allowance for residents in Community Integrated Living Arrangements will increase from $60 to $100 per month.
- Protection of Benefits: Ensures higher wages do not affect eligibility for disability services and assistance programs.
Source References
Resources
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