Illinois recently passed the Dignity in Pay Act (HB 793), marking a significant step toward equitable compensation for individuals with disabilities. This legislation requires the gradual elimination of subminimum wage payments to workers with disabilities, with a complete phase-out by December 31, 2029.
Section 14(c) of the federal Fair Labor Standards Act generally permits employers to pay individuals with disabilities less than the minimum wage. The Dignity in Pay Act addresses this by requiring employers to transition to paying at least the state minimum wage to all employees, regardless of disability status. To support this transition, the Act establishes a program offering funding, training, and assistance to employers currently utilizing 14(c) certificates.
Additionally, the Act directs the Illinois Department of Human Services (IDHS), the Illinois Council on Developmental Disabilities (ICDD), and the Illinois Department of Labor to collaborate on implementing the phase-out plan. This includes filing a Medicaid waiver amendment to enhance disability employment programs and increasing the Personal Needs Allowance for residents in Community Integrated Living Arrangements.
