When Congress passed the Fair Labor Standards Act in 1938, it created a special exemption in Section 14(c) that allowed certain employers to pay individuals with disabilities less than the federal minimum wage if the individual's disability impacted their productivity for the specific work being performed.
Today, those workplaces that obtain the Section 14(c) exemption
are commonly known as "sheltered workshops." Disability
rights advocates across the country have called for the elimination
of the subminimum wage, arguing that it is discriminatory on its
face and that it wrongfully leads to the segregation and isolation
of disabled workers, particularly those with developmental
disabilities.
Following Gov. JB Pritzker's Jan. 21 signing of the Dignity in
Pay Act, Illinois became the 18th state to heed the call to phase
out subminimum wages for disabled employees.
A bigger paycheck for disabled workers in Illinois is a good thing, right? The reality, however, is that some workers (and their families) who require significant supports fear the mandates of this statute will backfire and result in the loss of their jobs, leaving them to attempt to find one of the few openings available in local day programs or otherwise spending their days at home with a caregiver.
In Illinois, most of the approximately 60 "14(c) certificate employers" are community rehabilitation programs, many of which provide employment opportunities to individuals with developmental and other disabilities that often require varying levels of support in the workplace. While some transition to "competitive" employment in an inclusive workplace where employees with disabilities work with non-disabled peers, many are unable to secure integrated employment, so they stay in their position with the sheltered workshop on a long-term basis.
In the face of those concerns, the Dignity in Pay Act provides for a five-year process, led by various Illinois agencies, the Employment & Economic Opportunity for Persons with Disabilities Task Force, the Illinois Council on Developmental Disabilities and other experts, to phase out the subminimum wage and to facilitate transitioning those workers to competitive employment. The act commits to creating a transition grant program that will make funds available to employers phasing out subminimum wages and support integrating disabled workers into competitive employment. It also provides for grants to facilitate the development of new opportunities for employees with disabilities, including supported employment, customized employment, entrepreneurship and community-based day programs.
In the end, phasing out subminimum wages for employees with disabilities not only affirms their basic right to full participation in society, but it also affirms the right to fair and equal compensation and economic dignity. In addition, ensuring fair wages has the potential to unleash the full potential of employees with disabilities as equal and valuable contributors to the workforce.
By requiring employers to pay at least the minimum wage, disabled workers could see significant increases in their earnings and improvements in overall financial stability, and in turn make a meaningful contribution to the Illinois economy. While the act outlines mechanisms intended to assist the transition from a "sheltered workshop" to an inclusive workplace where all employees are paid the minimum wage, continued advocacy for employees with disabilities is necessary to ensure their interests in a fair and dignified workplace are heard and accounted for.
The Dignity in Pay Act is a win for developmentally and physically disabled Illinois citizens, but it's only one step of many that are needed to address the needs of adults with disabilities in Illinois.
Originally published by Crain's Chicago Business .
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