As a reminder to Nevada employers Assembly Bill (AB) 259 (2023) phases out the use of subminimum wages for individuals with intellectual or developmental disabilities. This law directly impacts providers of jobs and day training services who currently operate under a federal 14(c) certificate.

• Effective January 1, 2025, providers may no longer enter into new contracts or arrangements that pay less than the state minimum wage.

• Annually, providers who still pay subminimum wages under a valid 14(c) certificate must submit a transition plan to the Aging and Disability Services Division. This plan must:
  
  • Outline how each affected individual will either transition to earning at least the state minimum wage or be supported in obtaining competitive integrated employment, supported employment, or community-based activities aligned with their personal goals.
  • Be based on evidence-based practices and comply with federal regulations.
  • Include measurable benchmarks and progress reports for each individual.

• Key Deadline: By January 1, 2028, all subminimum wage employment must end. No individual may be paid below the state minimum wage under any 14(c) certificate.

• Individuals earning subminimum wages may designate an advocate (e.g., case manager, parent, or guardian) to represent them in employment-related meetings.
  
  • The law also supports Medicaid-funded services such as job coaching and benefit counseling to help individuals transition successfully into competitive employment. 

For additional information:
NV AB 259 of 2023 – Phasing Subminimum Wage

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.