Illinois Makes History Eliminating Subminimum Wage for Disabled Workers

 

November 21, 2024 | by Staff Author

Legislation will phase out an outdated discriminatory program that allows employers to pay workers with disabilities less than minimum wage    

CHICAGO — Disability advocates, families, employers, and legislators across Illinois are celebrating today as Illinois joins 14 states across the country who will pay disabled workers fairly.

Earlier this week the Illinois legislature passed the Dignity in Pay Act (HB 793), which will phase out the sub-minimum wage for disabled workers by 2029. The legislation also funds expanding integrated work environments that support disabled people.

The Dignity in Pay Act is the result of years of work by a coalition of advocates and disability service providers, including Chicago’s Access Living.  State leaders including Rep. Theresa Mah (D-Chicago) and Sen. Cristina Castro (D-Chicago) were legislation sponsors The Dignity in Pay Act passed with bipartisan support and is expected to be signed by Gov. JB Pritzker. 

“This is a monumental step forward,” says Nicholas Boyle, Economic Justice Policy Analyst at Access Living. “Rather than falling back on past policies that hold people with disabilities down, this legislation affirms the dignity of disabled workers and promotes competitive employment opportunities.” The Dignity in Pay Act also supports opportunities for significant intellectual and developmental disabilities who have historically been excluded from fair employment.    

Under 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. In some cases, disabled workers can make as little as 50¢ an hour, or less than $100 per  month for a 40-hour work week. After 5 years of co-developing Dignity in Pay, legislators, advocates, and stakeholders applaud Illinois for moving forward to ensure workers with disabilities will no longer be discriminated against with being paid less than minimum wage.

“After a decades long effort, today’s passage of the Dignity in Pay Act affirms that disabled workers in Illinois will receive equal pay in return for their work,” says Karen Tamley, CEO of Access Living, a Chicago-based organization serving people with disabilities. “We are proud to have collectively passed this legislation alongside a coalition of Illinois workers, employers, state agencies, and legislators.”

Illinois joins 14 other states in banning subminimum wage. 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 establishes a Transition Fund that will  support all providers with waivers to move 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.

“It is up to all those committed to hiring disabled workers to ensure that they are treated with dignity and paid fairly for their work,” says Douglas McDonald, CEO of SPARC, a organization that operates community integrated housing organizations for people with disabilities throughout Illinois. “Providing competitive employment is always a goal and this legislation gives employers and the state resources to transition into paying disabled workers competitively.”

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Established in 1980, Access Living is a center of service, advocacy, and social change for people with disabilities led and run by people with disabilities. We envision a world free from barriers and discrimination – where disability is a respected and natural part of the human experience and people with disabilities are included and valued.