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In November 2024, Illinois Governor JB Pritzker signed the , which will phase out the sub-minimum wage for disabled workers by 2029. Illinois joined 14 other states in signing legislation that will ensure that people with disabilities will be paid fairly for their work.
Payment of subminimum wages to people with disabilities has a decades-long history. Under the Section 14 (c) of the Fair Labor Standards Act of 1938, employers can apply for and receive a waiver from the federal Department of Labor which allows them to pay disabled workers less than minimum wage if an individual's disability impacts their productivity for the specific work being performed. But the assumption that people with disabilities are less productive is outdated. The Fair Labor Standards Act was created when employment options for disabled people were nearly nonexistent. But times have changed. Individuals with disabilities are capable, valuable workers who deserve fair pay, and the dignity that comes with fair pay.
According to the National Core Indicators, 44% of people with intellectual or developmental disabilities do not have a community job but want one. Over 3,000 people are currently employed across Illinois in subminimum-wage settings and will need support to find and keep community-based jobs. Furthermore, organizations need training, additional funding and technical assistance as we transition.
Several Illinois disability service providers have already moved away from sub minimum wage employment programs and created competitive, integrated programs that pay people with disabilities fairly. The Dignity in Pay Act will not just phase out subminimum pay for people with disabilities. It also establishes a Transition Fund that will support all providers in moving away from subminimum wage employment programs. Additionally, the legislation sets in place the creation of a task force to create a strategic plan to aid all stakeholders in transitioning to integrated work environments.
, Economic Justice Policy Analyst with , a key advocacy organization, played a significant role in pushing for the passage of the Act. "Last year, I was in Springfield almost every week, meeting with lawmakers to address their concerns and meeting with provider agencies across the state to hear their hopes and concerns about the phase-out of subminimum wages," Boyle explains.
Some provider agencies expressed fears that the legislation might reduce opportunities for people with disabilities. As Boyle points out, "Many human services agencies operate on thin margins and often view subminimum wage work as the only viable option. There's concern that transitioning away from this might take away the one thing that seems to be working." Despite these fears, Boyle notes that many agencies are hopeful that the law will lead to expanded community-based job opportunities, even for individuals with profound intellectual and developmental disabilities.
, Director of the at the University of Illinois Urbana-Champaign, is another key figure in this transition. As part of the (SWTCIE Illinois), Strauser's team is collaborating with six agencies—located in Chicago, northwest Illinois, and southern Illinois—that hold 14(c) certificates. These agencies are being supported as they transition toward competitive integrated employment, an effort that will require developing new business models and providing training for both providers and employers.
Strauser acknowledges that the transition will be challenging. "There's a lot of work to do, and there’s concern about completing the transition within the five-year timeline stipulated by the Act, That is why the support from the SWTCIE Illinois project is so important, " he says.
Josh Evans, President and CEO of the , shares similar concerns. "There are worries that Illinois has not yet fully developed sufficient community-based employment options, which could lead to job losses if subminimum wage programs are phased out too quickly," Evans says.
However, Evans also appreciates the law’s potential. "We saw this legislation as an opportunity to foster more thinking and development of community-integrated and customized employment opportunities," he explains. While the number of individuals in community-integrated employment remains low, Evans remains optimistic, citing increasing efforts to expand job opportunities for people with disabilities.