Gov. Pritzker Signs Bipartisan Dignity in Pay Act
HB793 will eliminate subminimum wage and expand employment opportunities for people with disabilities
January 21, 2025
CHICAGO- Today, Governor JB Pritzker signed the bipartisan Dignity in Pay Act (HB793) into law alongside bill sponsors Representative Theresa Mah and Senator Cristina Castro. The Dignity in Pay Act primarily implements a plan to phase out 14(c) subminimum wage authorizations in Illinois, joining 18 other states in doing so. The Illinois Department of Human Services (IDHS), the Illinois Council on Developmental Disabilities (ICDD) and the Illinois Department of Labor will lead the 5-year process—eliminating subminimum wage for people with disabilities by December 31, 2029.
“Illinois is closing an era of an outdated two-tier wage system that let disabled workers make less money for their hard work,” said Governor JB Pritzker. “The strength of the Dignity in Pay Act is that it not only sunsets an unfair wage policy, it puts an unprecedented emphasis on expanding employment opportunities for people across the spectrum of disability—strengthening rates, programs, and training opportunities for employers who are dedicated to the independence and support of people with disabilities. We are solidifying our status as a place of welcome and opportunity for all.”
"Our diversity is our strength and the Dignity in Pay Act will empower employers to benefit from what every employee has to offer," said Lt. Governor Juliana Stratton. “More importantly, though, we are clearly defining the minimum wage as a right, not a privilege, for those with disabilities."
The Dignity in Pay Act is an unprecedented step forward to remove barriers to employment and prevent discrimination in the workplace for people with disabilities across Illinois. Until today, a provision in the federal 1938 Fair Labor Standards Act (FLSA) has allowed for subminimum wage payment to individuals with disabilities by entities with special authorization, referred to as 14(c) certificates. Now, Illinois will phase out 14(c) and expand programs that increase inclusion and access for people with disabilities.
Beyond removing subminimum wage, the Dignity in Pay Act addresses a number of key changes needed for people with disabilities in the workforce. After thoughtful and cooperative dialogue with disability civil rights groups, disability service providers, and anti-poverty advocates, the Dignity in Pay Act will also:
- Establish a Transition Program for 14(c) providers, to receive funding, training, and support to increase work options and discontinue subminimum wage labor,
- Require HFS/DHS to file a Medicaid waiver amendment with federal CMS to increase small group supported employment rates to enhance disability employment programs,
- Increase the Personal Needs Allowance for 11,000+ Community Integrated Living Arrangement (CILA) residents to $100 per month (currently at $60), beginning immediately, and
- Appoint at least two additional 14(c) subminimum wage certificate holders to the Task Force responsible for disability employment tracking.
“We are making history today in Illinois,” said State Representative Theresa Mah (D-Chicago). “No longer will individuals who have untapped potential be subject to one size fits all assumptions and unfair treatment just because of a disability.”
“The Dignity in Pay Act is a call to action, reminding us all of the importance of people with disabilities to America’s workplaces and economy,” said State Senator Cristina Castro (D-Elgin). “I’ve stood with marginalized workers throughout my career, and this is a significant step forward toward eliminating barriers to employment that have held Americans with disabilities back for far too long.”
“I commend the sponsors, Governor Pritzker and their staffs for continuing to work with advocates and stakeholders to help gain bipartisan support for this legislation,” said Illinois Senate Republican Leader John Curran (R-Downers Grove). “I look forward to continuing to work with the sponsors and the EEOPD Task Force to ensure that the intent of the bill - to bring more dignity and opportunity to Illinoisans with disabilities - is fully realized throughout the state.”
"Illinoisans with disabilities are talented and hardworking contributors to our great state. The Dignity in Pay Act ensures they are fairly compensated for their skills," said Rahnee Patrick, IDHS Director of the Division of Rehabilitation Services. "The labor of people with disabilities deserves equal pay for equal work."
"The signing of the Dignity in Pay Act marks an important moment for disability rights and economic justice in Illinois,” said Karen Tamley, CEO of Access Living. “By eliminating the subminimum wage, we are affirming the value and dignity of disabled workers and taking a bold step toward a more inclusive and equitable future. Access Living is proud to have played a role in this transformative effort."
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