Transformation to Competitive Integrated Employment Act
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill ends the practice of paying workers with disabilities below minimum wage by phasing out Section 14(c) special certificates over 5 years. It creates a transition program with grants totaling $200 million annually to help employers shift to competitive integrated employment models where all workers earn at least minimum wage.
Who Benefits and How
Workers with disabilities currently earning subminimum wages will see mandatory wage increases (60% of minimum wage in year 1, rising to 100% by year 5) and gain access to competitive integrated employment opportunities. States and disability service providers receive grants (up to $10M per state, $1M per organization) to fund their transitions. People with disabilities also benefit from expanded access to community-based services and wraparound support.
Who Bears the Burden and How
Employers holding 14(c) special certificates (often sheltered workshops and disability service organizations) must transform their business models within 5 years or cease operations. They face increased labor costs as wages rise to minimum wage levels. The Department of Labor faces new administrative burdens including grant management, reporting, and enforcement responsibilities.
Key Provisions
- Phases out subminimum wages over 5 years (60% -> 70% -> 80% -> 90% -> 100% of minimum wage)
- Prohibits new special certificates immediately and sunsets all certificates after 5 years
- Authorizes $200 million annually for transition grants to states and employers
- Creates technical assistance program to share best practices for competitive integrated employment
- Requires annual wage and hour reports and multi-year impact evaluation
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Phases out the Section 14(c) special certificate program that allows employers to pay people with disabilities below minimum wage, while providing grants and support to help employers transition to competitive integrated employment models.
Key Policy Areas
Labor, Disability Rights, Workforce Development
Primary Purpose
Phases out the Section 14(c) special certificate program that allows employers to pay people with disabilities below minimum wage, while providing grants and support to help employers transition to competitive integrated employment models.
Policy Domains
Title I - Transformation Grants
Identified Gains
- People with disabilities
- States
- Disability service providers
Identified Costs
- Employers with 14(c) certificates who must transform business models
Title V - General Provisions
Identified Gains
- All stakeholders (definitional clarity)
Identified Costs
- Federal budget (appropriations)
Title II - Fair Wages and Certificate Phaseout
Identified Gains
- Workers with disabilities earning subminimum wages
Identified Costs
- Employers holding 14(c) special certificates
- Sheltered workshops
Title IV - Reports
Identified Gains
- Congress (oversight)
- Evaluation contractors
Identified Costs
- Department of Labor (reporting requirements)
- Employers (data collection)
Title III - Technical Assistance
Identified Gains
- Employers transitioning to competitive employment models
- Nonprofit technical assistance providers
Sponsors
Legislative Progress
In CommitteeMr. Van Hollen (for himself, Mr. Daines, Mrs. Gillibrand, and …
Read twice and referred to the Committee on Health, Education, …
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Disability service providers transforming to competitive employment, Employers holding 14(c) special certificates, Employers providing employment under special certificates
Positive-direction: Disability service providers transforming to competitive employment, Employers transitioning from special certificates, Nonprofit entities providing technical assistance, Sheltered workshops and disability service providers with 14(c) certificates, Technical assistance providers
Negative-direction: Employers holding 14(c) special certificates, Employers providing employment under special certificates, Employers seeking new 14(c) certificates, Employers using 14(c) special certificates, Employers with 14(c) certificates (subject to audit), Employers with existing 14(c) certificates, Sheltered workshops
Civil Rights Division of Department of Justice, Congress, Department of Labor
Positive-direction: Congress, Department of Labor Wage and Hour Division
Negative-direction: Civil Rights Division of Department of Justice, Department of Labor, Federal budget, Office of Disability Employment Policy, Wage and Hour Division of Department of Labor
People with disabilities employed at subminimum wages, People with disabilities employed in sheltered workshops, People with disabilities employed under special certificates
State developmental disability agencies, State governments applying for transformation grants, State vocational rehabilitation agencies
Positive-direction: State governments applying for transformation grants, States applying for transformation grants, States that complete transformation grants
Negative-direction: State vocational rehabilitation agencies
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Labor
- "the_secretary"
- → Secretary of Labor
- "the_secretary"
- → Secretary of Labor (through Office of Disability Employment Policy)
- "the_secretary"
- → Secretary of Labor
Key Definitions
Terms defined in this bill
Has the meaning given such term in section 529A(e)(6) of the Internal Revenue Code of 1986
Has the meaning given the term in section 7(5) of the Rehabilitation Act of 1973 (29 U.S.C. 705(5))
Includes any intellectual, developmental, mental health, or other disability
Services for people with disabilities designed to assist in developing skills for home and community-based settings, provided in person-centered manner using evidence-based practices
A certificate issued under section 14(c) of the Fair Labor Standards Act of 1938 permitting payment below minimum wage
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology