This legislation, titled the Transformation to Competitive Integrated Employment Act, seeks to eliminate the practice of paying individuals with disabilities subminimum wages under special certificates issued by the Fair Labor Standards Act of 1938. Its primary purpose is to assist employers in transforming their business models to support individuals with disabilities in competitive integrated employment , where they earn at least the minimum wage and work alongside individuals without disabilities. The bill establishes two grant programs to achieve this transformation. A State grant program offers competitive funding for states to develop comprehensive plans, including timelines for phasing out special certificates, engaging stakeholders, and coordinating various state agencies. These grants, ranging from $2 million to $10 million over five years, require states to ensure all individuals currently employed under special certificates transition to competitive integrated employment. Additionally, a certificate holder grant program provides funding directly to individual employers who use special certificates in states not receiving a state grant. These grants, between $100,000 and $500,000 over three years, support employers in redesigning their operations, providing staff training, and securing partnerships to facilitate the transition to competitive integrated employment and integrated services. A core provision of the bill is the gradual increase of wages for individuals currently paid subminimum wages. Over a four-year period, these wages will incrementally rise from 60% of the federal minimum wage to 100%, or the applicable state/local minimum wage, whichever is higher. This ensures a fair wage transition for all affected employees. The bill also prohibits the issuance of any new special certificates to employers who did not hold one before the Act's enactment. Crucially, it mandates a complete sunset of all existing special certificates four years and three months after the Act's effective date, thereby ending the practice of subminimum wage employment for individuals with disabilities. To support these efforts, the legislation authorizes a grant for a nonprofit entity to provide technical assistance and disseminate best practices to employers undergoing this transformation. This includes identifying successful models and building replicable strategies for increasing competitive integrated employment opportunities. Finally, the bill includes robust reporting and evaluation requirements . The Secretary of Labor will contract for a multi-year evaluation of the Act's impact on wages and employment for individuals with disabilities, with interim and final reports to Congress. Annual wage and hour reports will also track the progress of employers using special certificates, detailing employee demographics, wages, and transitions to competitive integrated employment, ensuring accountability and transparency throughout the transition process.
Transformation to Competitive Integrated Employment Act
USA119th CongressHR-4771| House
| Updated: 7/25/2025
This legislation, titled the Transformation to Competitive Integrated Employment Act, seeks to eliminate the practice of paying individuals with disabilities subminimum wages under special certificates issued by the Fair Labor Standards Act of 1938. Its primary purpose is to assist employers in transforming their business models to support individuals with disabilities in competitive integrated employment , where they earn at least the minimum wage and work alongside individuals without disabilities. The bill establishes two grant programs to achieve this transformation. A State grant program offers competitive funding for states to develop comprehensive plans, including timelines for phasing out special certificates, engaging stakeholders, and coordinating various state agencies. These grants, ranging from $2 million to $10 million over five years, require states to ensure all individuals currently employed under special certificates transition to competitive integrated employment. Additionally, a certificate holder grant program provides funding directly to individual employers who use special certificates in states not receiving a state grant. These grants, between $100,000 and $500,000 over three years, support employers in redesigning their operations, providing staff training, and securing partnerships to facilitate the transition to competitive integrated employment and integrated services. A core provision of the bill is the gradual increase of wages for individuals currently paid subminimum wages. Over a four-year period, these wages will incrementally rise from 60% of the federal minimum wage to 100%, or the applicable state/local minimum wage, whichever is higher. This ensures a fair wage transition for all affected employees. The bill also prohibits the issuance of any new special certificates to employers who did not hold one before the Act's enactment. Crucially, it mandates a complete sunset of all existing special certificates four years and three months after the Act's effective date, thereby ending the practice of subminimum wage employment for individuals with disabilities. To support these efforts, the legislation authorizes a grant for a nonprofit entity to provide technical assistance and disseminate best practices to employers undergoing this transformation. This includes identifying successful models and building replicable strategies for increasing competitive integrated employment opportunities. Finally, the bill includes robust reporting and evaluation requirements . The Secretary of Labor will contract for a multi-year evaluation of the Act's impact on wages and employment for individuals with disabilities, with interim and final reports to Congress. Annual wage and hour reports will also track the progress of employers using special certificates, detailing employee demographics, wages, and transitions to competitive integrated employment, ensuring accountability and transparency throughout the transition process.