On January 21, 2025, Governor JB Pritzker signed the Dignity in Pay Act (HB793) into law. The Dignity in Pay Act mandates that subminimum wage authorizations otherwise authorized under federal law be phased out and completely eliminated in Illinois by December 31, 2029.

Section 14(c) of the Fair Labor Standards Act (FLSA) allows certain employers to pay individuals with disabilities less than the federal minimum wage if the individual’s disability impacts their productivity for the specific work being performed. Illinois joins 18 other states that have eliminated the use of Section 14(c) authorizations.

Under the Dignity in Pay Act, the Illinois Department of Human Services (IDHS), the Illinois Council on Developmental Disabilities (ICDD) and the Illinois Department of Labor (IDOL) will lead a five-year process of eliminating subminimum wages for people with disabilities. While the Act does not specify exactly how Section 14(c) certificates will be phased out, the Dignity in Pay Act amends the Employment and Economic Opportunity for Persons with Disabilities Task Force Act by mandating that the Task Force, along with the ICDD and an academic partner with relevant subject matter expertise, develop a multi-year plan of recommended actions, outcomes, and benchmarks to help the state successfully eliminate the use of certificates authorized under Section 14(c) of the FLSA by December 31, 2029.

To provide assistance to employers during the transition, the Act amends the...

Read Full Story: https://news.google.com/rss/articles/CBMihgFBVV95cUxQV1FLVHBhaGtzWDlyakdzRE9J...