02.28.23

What People Are Saying: Transformation to Competitive Integrated Employment Act

WASHINGTON – YesterdayRepresentative Bobby Scott (D-VA), Ranking Member of the Committee on Education and the Workforce, and Representative Cathy McMorris Rodgers (R-WA), Chair of the Committee on Energy and Commerce, along with Senator Bob Casey (D-PA), Chair of the Senate Committte on Aging, and Senator Steve Daines (R-MT) announced the reintroduction of the Transformation to Competitive Integrated Employment Act.  This bipartisan legislation would provide states and employers with the resources to transition workers with disabilities into fully integrated and competitive jobs, which includes earning at least the minimum wage alongside individuals without disabilitiesm, while phasing out the subminimum wage for individuals with disabilities.

Here is what leading advocates and experts are saying about the Transformation to Competitive Integrated Employment Act:

Collaboration to Promote Self-Determination: "The Americans with Disabilities Act (ADA) makes clear that Congress finds that the Nation's proper goals regarding individuals with disabilities are to assure equality of opportunity, full participation, independent living, and economic self--sufficiency [emphasis added] for such individuals1. Section 14(c) of the Fair Labor Standards Act (FLSA), which allows payment of subminimum wages to people with disabilities, runs contrary to the intent of the ADA and the will of the broader disability community. TCIEA takes a thoughtful and common-sense approach to the issue of subminimum wages by phasing Section 14(c) out over five years while also providing States, service providers, subminimum wage certificate holders, and other agencies with the resources they need to create competitive integrated employment (CIE) service delivery models and the inclusive wraparound services that some individuals with disabilities will need when subminimum wages phase out. This approach will better ensure that individuals are not impacted negatively during this transition and have the opportunity to work in CIE.

"We know that people with disabilities and their families want more opportunities and access for CIE. While more can and should be done, we acknowledge that many employment service providers are working to change their business models away from sheltered workshops and other segregated settings to CIE. Furthermore, in the last few years we have seen several states phase out the use of 14(c) certificates which reflects this shift toward an expectation that people with disabilities, even those with the most significant disabilities, can work in CIE.

"We believe the end of the 14(c) program is on the horizon and TCIEA will play a major part in ensuring that this is done in a manner that centers people with disabilities and furthers economic self-sufficiency as established by the ADA."

Consortium for Constituents with Disabilities (CCD) Employment and Training Task Force: “We support the efforts currently underway to end the use of 14(c) certificates under the Fair Labor Standards Act.

“The proposed bill calls for a thoughtful phasing out of 14(c) and subminimum wage for workers with disabilities. To date, 13 states have passed legislation to effectively phase out these practices. If passed, the Transformation to Competitive Integrated Employment Act (TCIEA) will end these practices, ensuring that ALL workers with disabilities have the right to earn at least the Federal minimum wage just like workers without disabilities. This is a necessary step in achieving the full intent of the Americans with Disabilities Act (ADA), which aims to advance economic self-sufficiency and ensure basic civil rights for people with disabilities. Furthermore, the Workforce Innovation and Opportunity Act (WIOA) of 2014 established a definition of competitive integrated employment which stipulates that that workers with and without disabilities should be paid the same wages for the same work.

“An effective phase-out of Section 14(c) of the Fair Labor Standards Act must involve the building of necessary infrastructure and supports to ensure that better alternatives are available after the transition. The Transition to Competitive Integrated Employment Act provides infrastructure and comprehensive support to states, entities, and individuals with disabilities to assist with the transition. This is an important piece of legislation that will create a pathway to support the transition for nearly 70,000 individuals with disabilities earning subminimum wage under 14(c) certificates.”

Association of People Supporting Employment First (APSE) Executive Director Julie J. Christensen: “The proposed bill will result in a thoughtful phasing out of subminimum wage, which remains a legacy of Section 14(c) of the Fair Labor Standards Act (FLSA, 1938). APSE has been advocating for this since 2009, and this policy priority was reaffirmed by our National Board of Directors in 2019 (see APSE’s Call to Phase out 14(c) and Subminimum Wage).

“To date, 13 states have eliminated the use of 14(c) certificates and payment of subminimum wages for people with disabilities. If passed, the TCIEA will end this practice Federally, ensuring that ALL workers with disabilities have the right to earn at least the Federal minimum wage just like workers without disabilities. This is a necessary step in achieving the full intent of the Americans with Disabilities Act (ADA), which aims to advance economic self-sufficiency and ensure basic civil rights for people with disabilities. Furthermore, the Workforce Innovation and Opportunity Act (WIOA) of 2014 established competitive, integrated employment as a priority, ensuring that people with disabilities work in mainstream jobs alongside, and are paid comparable wages to co-workers without disabilities.

“As an organization that cares deeply about the overall health and well-being of people with disabilities, this bill will allow states to develop the capacity and receive the supports necessary to successfully transition business models and programs to CIE for people with disabilities. We urge Congress to continue to work in a bipartisan manner to address the economic disparities and unnecessary segregation of people with disabilities, including those with the most significant disabilities, that is sustained through continued utilization of the subminimum wage.”

National Down Syndrome Society (NDSS) President and CEO Kandi Pickard: “As the leading human rights organization for all individuals with Down syndrome, the National Down Syndrome Society (NDSS) strongly supports the passage of the Transformation to Competitive Integrated Employment Act, which would empower states, communities, and employers to phase out the use of mechanisms that allow individuals with disabilities to be paid less than the minimum wage. Through technical assistance and community investment, employers would be better able to provide competitive, integrated employment opportunities for individuals with disabilities.

“By phasing out the use of the subminimum wage, this bill affirms that employees with disabilities have the right to work in competitive integrated employment settings alongside their colleagues without disabilities and to be paid at least minimum wage for their work. This belief has sparked legislative change in states across the country, and passage of the Transformation to Competitive Integrated Employment Act will build off these efforts and help eliminate discrimination across the country.

“NDSS envisions a world in which all people with Down syndrome have the opportunity to enhance their quality of life, realize their life aspirations and become valued members of welcoming communities. We urge Congress to take action to phase out subminimum wage for individuals with Down syndrome and other disabilities, and we thank you for your leadership regarding this important piece of legislation.”

National Down Syndrome Congress Executive Director Jordan Kough: “TCIEA is a comprehensive and thoughtful policy solution to the discriminatory practice of paying people with disabilities less than the federal minimum wage under Section 14(c) of the Fair Labor Standards Act. NDSC has called for the phase out of the issuance of subminimum wage certificates while also advocating for the infrastructure and transition supports needed to increasing opportunities for competitive integrated employment so that people with Down syndrome can successfully to transition into the labor market. TCIEA would accomplish this goal by phasing Section 14(c) out over five years while also providing States, service providers, subminimum wage certificate holders, and other agencies with the resources they need to create competitive integrated employment service delivery models and the inclusive wraparound services that some individuals with disabilities will need when subminimum wages phase out. This legislation will better ensure that no one is out of a job as a result of the phase out.

“We thank you all for your leadership in trying to end the antiquated and discriminatory practice of paying people with disabilities less than the federal minimum wage. Employment should be an expected life activity for individuals with Down syndrome, and individuals with Down syndrome should have the individual and systemic supports necessary to enable them to find, keep and succeed in careers in the community based on their preferences, interests, and strengths.”

National Association of State Directors of Developmental Disabilities Services (NASDDDS): “In acknowledgment of and respect for individuals with disabilities, the NASDDDS Board of Directors believes the time has come to move away from the practice of allowing people with intellectual and developmental disabilities and other significant disabilities to be paid less than minimum wage. This practice is currently enabled by Section 14(c) of the Fair Labor Standards Act.

“At this juncture in our history, as we undertake efforts to ensure real and meaningful community integration for all individuals with disabilities, we must renounce practices that have the impact of systematic marginalization of individuals with disabilities. Our goal is for individuals with disabilities to be paid a living wage commensurate to pay for similar work by individuals without disabilities, at or above minimum wage. Fair compensation enables workers to achieve economic stability, safeguards their health, and assists in planning their future. All individuals, regardless of disability, have a right be paid the federal or state minimum wage, whichever is greater, or the prevailing wage for the work performed.

“We recognize it will take dedication, focus, time, and resources to adapt our service delivery systems to move away from those structures that have relied upon subminimum wages. Therefore, NASDDDS calls for federal action and resources to develop the infrastructure and capacity at all system levels to increase competitive integrated employment and the supplemental services people with disabilities need to maintain employment.

“Federal action and resources must be available to ensure appropriate resources for government funded, competitive, integrated employment services and a broad array of Medicaid Home and Community Based Services (HCBS) supports for people to live full lives in their communities when they are working and when they are not.

“Advancing competitive integrated employment for people with disabilities requires coordinated and adequate resources across Medicaid HCBS programs, vocational rehabilitation, education and workforce development systems.

“NASDDDS stands committed to assisting states through this journey. Several states have already successfully ended use of subminimum wages and have expanded the service capacity of their provider networks to deliver services and supports that leads to inclusion of individuals' with disabilities in the economic and social fabric of their communities. We can learn from these early adopters and NASDDDS will facilitate this peer-to-peer learning.”

Council of State Administrators of Vocational Rehabilitation (CSAVR) CEO Stephen A. Wooderson: “CSAVR and its members stand united in phasing out section 14(c), as well as segregated and sheltered employment that trivializes the worth of people with disabilities. This bill will help workers previously employed under 14(c) transition into their next job, and we commend Congress for its commitment to equitable employment for people with disabilities to be able to achieve competitive integrated work that leads to total economic self-sufficiency.” 

Autistic People of Color Fund Director of Policy and Advocacy Finn Gardiner: “Although the Americans with Disabilities Act enshrines disabled people’s right to work in the community, there is still much to be done to redress many of the inequities that we face. The Transition to Competitive Integrated Employment Act would solve many of these problems and allow disabled people to get the support they need to obtain and keep jobs.

“Disabled people are vastly more likely to be unemployed than their nondisabled counterparts. According to the Bureau of Labor Statistics, only one-third of adults with disabilities have jobs; meanwhile, three-quarters of nondisabled people are employed. And when disabled people are employed, they are at risk for exploitation and segregation. Section 14(c) of the Fair Labor Standards Act authorizes companies with special certificates to pay workers less than the minimum wage. This practice is called “subminimum wage.” Subminimum-wage-paying jobs are often in sheltered workshops, which sequester disabled people away from the rest of society, even as sheltered-workshop owners claim that their services will help disabled people thrive in their communities. Subminimum wages are a pittance, a trifle – hardly fair pay for a long day’s work.

“The Transition to Competitive Integrated Employment Act would gradually abolish the practice of paying subminimum wages to disabled workers. It would also help states and employers that currently pay subminimum wages to help disabled workers move into jobs that allow them to work alongside nondisabled workers and earn fair wages. It would also set up a Technical Assistance Center to support this transition, including information on Medicaid’s home- and community-based service programs.

“Disabled people deserve the chance to have meaningful jobs that pay well and allow them to work alongside nondisabled people. We urge the House to give disabled workers a chance and support the reintroduction of the Transition to Competitive Integrated Employment Act.”

Autism Society of America President and CEO Christopher Banks: “Increasing employment opportunities for individuals with Autism is one of our highest legislative prioritie.  Employment plays a pivotal role in transitions to adulthood, independent living, socialization, self-worth and confidence.  This bill will help us achieve more equitable employment opportunities by assisting states to remove barriers that prevent competitive integrated employment.  It will also help the many individuals who have lost their jobs due to the pandemic, and support them as they return to work.”

Community Options, Inc. President and CEO Robert Stack: “Every American deserves the opportunity to live productive and fulfilling lives. For far too long, people with disabilities have been treated as second-class workers while employers have profited off their labor. I applaud Senators Casey and Daines, and Representatives Scott and McMorris Rodgers, for their bipartisan efforts to eliminate subminimum wages. This legislation will be life-changing for the 120,000 Americans currently exploited by this archaic practice. I urge Congress to swiftly pass this bill so that every person can realize the promises of the Americans with Disabilities Act.”

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