A landmark plan spearheaded by State Senator Cristina Castro and State Representative Theresa Mah to begin phasing out the federal subminimum wage for Illinoisans with disabilities is one step closer to becoming law.

“I’ve heard from friends, family and constituents about the pain they have to live with knowing their son or daughter is doing manual labor in a shop for eight hours a day only to come home with pennies on the dollar in their paycheck,” said Castro (D-Elgin). “This legislation is personal to me and a critical step in upholding the rights and dignity of all workers in our state.”

The subminimum wage exemption was passed into law as Section 14(c) of the federal Fair Labor Standards Act of 1938. For nearly a century, Section 14(c) has enabled certain employers to obtain certificates to employ individuals with disabilities at wages far below the minimum wage. In Illinois, at least 50 employers hold 14(c) certificates, with most paying their employees under $1 per hour. This practice takes advantage of vulnerable workers and limits economic opportunities for those who already face significant barriers to employment. In Illinois, people with disabilities are more than twice as likely to live in poverty as people without disabilities.

House Bill 793 – also known as the Dignity in Pay Act – would lay a supportive foundation to help employers transition to paying their disabled employees a fair wage. The measure would call for state agencies to collaborate on a plan to phase out 14(c) certificates over the next five years, giving employers time to make necessary changes.

The Dignity in Pay Act would increase funding for competitive, integrated employment programs as alternatives to 14(c) employment, where workers with disabilities can receive on-the-job support and services alongside people without disabilities. These settings maintain competitive wages with the goal of facilitating inclusion — rather than segregation — in the workplace. For current 14(c) certificate holders that need support phasing out subminimum wage pay, the legislation would also establish a grant program to help these employers make the transition.

“Unfair labor standards are allowing people with disabilities to be taken advantage of and it’s time Illinois joins the nationwide movement towards reform,” said Mah (D-Chicago). “Our current one-size-fits-all approach doesn’t work. We need a system that is more tailored to various individuals’ needs in terms of support, resources and compensation. I was happy to work with Senator Castro to ensure people with disabilities don’t get shortchanged.”

House Bill 793 passed the Senate Thursday with bipartisan support.