| Update Applicable to: | Effective Date |
| All Employers | Multi-Year Plan – See Below |
What happened?
On January 21, 2025, Governor JB Pritzker signed into law the Dignity in Pay Act (HB793), a groundbreaking move to eliminate subminimum wages for disabled employees in Illinois.
Overview:
The Dignity in Pay Act requires the elimination of subminimum wages for people with disabilities by December 31, 2029. This applies to businesses and facilities holding 14(c) certificates, which allow lower wages based on individual productivity.
Effective Dates:
January 1, 2025: personal needs allowance shall increase annually to reflect Social Security cost of living adjustment.
July 1, 2025: The EEOPD (Employment and Economic Opportunity for Persons with Disabilities) Task Force to create a multi-year plan of recommended actions, outcomes, and benchmarks
July 1, 2027: That state will eliminate the use of 14(c) certificates and lower wage for workers with disabilities.
Additional Information:
Transition Program: Establishes a grant program to support organizations in transitioning to paying at least the state minimum wage. This includes funding, training, and support to increase work options and discontinue subminimum wage labor.
Task Force: The Illinois Department of Human Services (IDHS), the Illinois Council on Developmental Disabilities (ICDD), and the Illinois Department of Labor (IDOL) will lead a five-year process to phase out 14(c) certificates.
At least two additional 14(c) certificate holders will be appointed to the Task Force to oversee disability employment tracking.
Personal Needs Allowance: This bill immediately increases the allowance for over 11,000 Community Integrated Living Arrangement (CILA) residents from $60 to $100 per month.
Means-Tested Benefits Protection: This policy ensures that higher wages do not affect eligibility for disability services and assistance programs.
Medicaid Waiver Amendment: This amendment requires HFS/DHS to file an amendment to increase small group supported employment rates and enhance disability employment programs.
This new law mandates that subminimum wage authorizations were previously allowed under Section 14(c) of the Fair Labor Standards Act (FLSA).
Source References
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