HB5570 103RD GENERAL ASSEMBLY

LRB103 39495 SPS 69692 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5570

Introduced 2/9/2024, by Rep. Charles Meier

SYNOPSIS AS INTRODUCED:

New Act
820 ILCS 105/5	from Ch. 48, par. 1005

Creates the Employment Choice for All Act. Provides that, subject to appropriation, on and after July 1, 2030, the Department of Labor shall award grants to eligible employers who were issued 14(c) certificates in transforming their business model from providing employment using 14(c) certificates to a business model that employs and supports individuals with disabilities by providing competitive integrated employment. Sets forth requirements and procedures for receiving the grant. Preempts home rule. Provides that the Department shall conduct an evaluation of grants awarded under the Act. Creates the Competitive Integrated Employment Task Force and sets forth the purpose and membership of the Task Force. Amends the Minimum Wage Law to make conforming changes. Effective January 1, 2030.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Employment Choice for All Act.

Section 5. Findings and purpose.

(a) The General Assembly finds that competitive and integrated employment between persons with a mental or physical disability and persons with no mental or physical disability is at an insufficient level that does not reflect the intent of the Illinois Employment First Act or the Customized Employment for Individuals with Disabilities Act. Data released by the Case for Inclusion ranks Illinois in the bottom 5 states in integrated workforces. In fact, when it comes to employment opportunities for individuals with developmental disabilities, only 7% of Illinois is integrated, compared to the national average of 20%. Data should be released by the Department of Human Services about the status and success of the U.S. Department of Education 84.421D: Disability Innovation Fund - Subminimum Wage to Competitive Integrated Employment Innovative Model Demonstration Project (SWTCIE) Illinois (24-444-30-3025) to better model this Act.

(b) This Act is intended to provide assistance to employers to integrate their workforce between persons with mental and physical disabilities and persons who do not have mental and physical disabilities. This policy applies to all public and private employers employing individuals with mental and physical disabilities. Nothing in this Act is intended to require any employer to give special treatment to persons with disabilities.

Section 10. Definitions. As used in this Act:

"Business model" means the way in which an employer plans to make a profit by identifying the products or services the employer plans to sell, its identified target market, and any anticipated expenses.

"Competitive employment" means work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting and for which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not persons with disabilities.

"Department" means the Department of Labor.

"Director" means the Director of Labor.

"Disability" means a disability as defined by the Americans with Disabilities Act of 1990 that is attributable to a developmental disability, a mental illness, a physical disability, or a combination of those.

"Eligible employer" means an employer as defined in Section 3 of the Minimum Wage Law who:

(1) holds a 14(c) certificate authorized under the federal Fair Labor Standards Labor Act of 1938, as well as authorizations permitted under Section 5 and 10 of the Minimum Wage Law to pay an employee with a disability less than the minimum wage otherwise required for employees under Section 4 of the Minimum Wage Law;

(2) is currently not funded as a community rehabilitation program under the Department of Human Services;

(3) has not already received a grant under Section 15; and

(4) is willing and able to consent to transitioning from subminimum wage to minimum wage in a competitive integrated employment setting.

"Integrated setting" means, with respect to an employment outcome, a setting typically found in the community in which applicants or eligible individuals interact with individuals without disabilities, other than individuals without disabilities who are providing services to those applicants or eligible individuals, to the same extent that individuals without disabilities in comparable positions interact with other persons. "Integrated setting" also includes supported and customized employment, benefits counseling, job shadowing, and on-the-job experiences.

Section 15. Grants to eligible employers.

(a) Subject to appropriation, on and after July 1, 2030, the Department shall award grants to eligible employers who were issued 14(c) certificates in transforming their business model from providing employment using 14(c) certificates to a business model that employs and supports individuals with disabilities by providing competitive integrated employment, including by compensating all employees at a rate that is:

(1) at or higher than the federal minimum wage; and

(2) at or higher than the benefit package afforded to all employees, regardless of disability, except for an employee that does have a disability, the cost of care for the disability may be included in their benefit package.

(b) An eligible employer applying for a grant under this Section shall submit an application to the Department that includes:

(1) the number of employees under a 14(c) certificate and demographic info of those employees, including gender, race, ethnicity, and disability;

(2) the number of employees working for an employer with a 14(c) certificate but who do not have a registered disability receiving a 14(c) certificate subminimum wage;

(3) the average, minimum, maximum, and range of hourly wages paid to employees employed using 14(c) certificates during the previous year;

(4) the average, minimum, maximum, and range of hourly wages paid to all employees, regardless of disability during the previous year;

(5) a historical accounting, covering each of the previous 5 fiscal years, of the number of employees with a disability working for a wage that is:

(A) less than the higher of the rate specified in 29 U.S.C. 206(a)(1) or the rate specified by a State or local minimum wage law; or

(B) less than the customary rate paid by the employer for the same or similar work performed by other employees who are not individuals with disabilities and who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills;

(6) during the preceding 5 fiscal years, the number of individuals with disabilities, disaggregated by fiscal year, who have been transitioned by the eligible employer from employment under a 14(c) certificate to a competitive integrated employment;

(7) a description of the eligible employer's business model, including the financial and organizational structure of the eligible employer that is using the 14(c) certificates, including:

(A) the type of integrated settings the eligible employer has provided to its disabled employees;

(B) the budget and the funding structure; and

(C) the human resource structure;

(8) a description of activities to be funded under the grant and the goals of the activities, including;

(A) a description of the business model of competitive integrated employment or a combination of competitive integrated employment and integrated services into which the models of the eligible employer will transform, including the business plan, employment structure, and leadership organization of the eligible employer;

(B) a description of the integrated services to be provided by the eligible employer;

(C) after the transformation of the eligible employer's business model, the number of employees that will be employed under the model;

(D) the funding structure the eligible employer will use to provide competitive integrated employment or a combination of such employment and integrated services;

(E) a description of the transportation methods needed for employees to make it to and from their place of employment;

(F) a description of the transportation methods available provided by the employer for employees to make it to and from their place of employment;

(G) the process to be used for the transformation of the eligible employer's business model, including:

(i) redesign of contracts;

(ii) changes in funding sources;

(iii) staff training on competitive integrated employment support and practices;

(iv) input from key stakeholders, including individuals with disabilities, their families, and other local stakeholders; and

(v) a description of the individuals who will be responsible for the development and implementation of such process;

(9) a timeline of activities to be implemented and goals to be reached on a quarterly basis during the 3-year grant period;

(10) a description of how the activities under the grant will coordinate with the State programs, agencies, and funding in the transformation described in paragraph (8);

(11) assurances that:

(A) the activities carried out under the grant will result in the transformation described in paragraph (8);

(B) individuals with disabilities who were employed by the eligible employer under 14(c) certificates will be employed in competitive integrated employment receiving a minimum wage;

(C) the application submitted is accurate and truthful;

(D) the eligible employer will cooperate with the evaluation described in Section 20 by providing all data required and allowing evaluation of the activities under the grant; and

(E) individuals with disabilities who are employed by the eligible employers receiving a grant under this Act meet the standard level work performance;

(12) assurances of collaboration and support from all State entities, including the Department of Human Services, the State Board of Education, and other State and government entities and organizations that support transformations to providing competitive integrated employment and integrated services for employees employed;

(13) the date on which the eligible employer will fully implement the minimum wage for disabled employees; and

(14) other information and assurances as the Director may reasonably require.

(c) Individuals with mental and physical disabilities who are employed by employers receiving a grant under this Act shall be evaluated on a standard level work performance that shall include:

(1) the duration of completion of task;

(2) the duration of mental health breaks; and

(3) the duration of physical health breaks.

(d) To the extent practicable, the Director shall distribute grant funds under this Section equitably among geographic areas of the State and shall take into account rural and urban diversity.

(e) To the extent practicable, the Director shall distribute grant funds under this Section equitably among eligible employers providing employment using 14(c) certificates serving different numbers of individuals.

(f) A grant awarded under this Section shall be awarded for a period of 3 years. Grants shall be awarded under this Section in 2 grant cycles. Grants for the second grant cycle shall be awarded not earlier than the end of the second year of the first 3-year grant cycle.

(g) An employer may only be awarded one grant under this Section.

(h) A grant awarded under this Section may not be made in an amount that is less than $10,000 or more than $50,000 for the 3-year grant period.

(i) Upon confirmation of grant approval through either address of record or email address, the grantee may begin transitioning from subminimum wage to minimum wage immediately or in the preceding 48 hours.

(j) The grantee may accept the grant immediately or within 48 hours upon approval. If the grantee makes the decision not to accept the grant immediately or within 48 hours, the grant shall be returned to the State immediately for further consideration to the next applicant.

(l) The phasing out the 14(c) certificate subminimum wage to the minimum wage shall occur at a rate that equals or exceeds the greater of:

(1) 60% of the wage rate in effect under the federal Competitive Integrated Employment For All Act;

(2) 70% of the wage rate in effect under subsection (i), beginning one year after the effective date of this Act;

(3) 80% of the wage rate in effect under subsection (i), beginning 2 years after the effective date of this Act; and

(4) 90% of the wage rate in effect under subsection (i), beginning 3 years after the effective date of this Act.

The wage rate in effect on the day before the date of enactment of the federal Competitive Integrated Employment For All Act, under a 14(c) certificate, shall not be changed.

(m) Upon completion of the transition from subminimum wage to minimum wage the 14(c) holder may still be considered 14(c) certified by the federal Fair Labor Standards Act, as well as authorizations permitted under Section 5 and 10 of the Minimum Wage Law.

Section 20. Evaluation and report.

(a) The Department shall conduct an evaluation of grants awarded under this Act. The evaluation conducted by the Department shall evaluate all grant holder's:

(1) changes in wages and employment for employees with mental or physical disabilities; and

(2) actions taken by the grant holder to comply with Section 15.

(b) The Director shall submit to the General Assembly and the Governor a final report on such evaluations not later than 18 months after the effective date of this Act.

Section 25. Exclusions. Nothing in this Act shall be construed to affect the validity of holders of certificates issued under Section 14(c) of the Fair Labor Standards Act, including community-integrated living arrangements under the Community-Integrated Living Arrangements Licensure and Certification Act, community services under the Community Services Act, and intermediate care facilities for developmental disabilities under the ID/DD Community Care Act.

Section 30. Home rule. The regulation of 14(c) certificates is an exclusive power and function of the State. A home rule unit may not regulate 14(c) certificates. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

Section 35. Competitive Integrated Employment Task Force.

(a) The Competitive Integrated Employment Task Force is created within the Department to (i) provide guidance and recommendations, (ii) review progress made throughout the process, (iii) address systemwide and systematic barriers to transition, and (iv) support the continued use of 14(c) certificates until a clear and concise consensus emerges from all parties in the Task Force on actions, including additional statutory, regulatory, or policy measures that could be taken to provide 14(c) holders with the necessary resources, including State and federal funding, to transition to competitive integrated employment.

(b) The Task Force shall be comprised of members as follows:

(1) one member of the Senate, appointed by the President of the Senate;

(2) one member of the Senate, appointed by the Minority Leader of the Senate;

(3) one member of the House of Representatives, appointed by the Speaker of the House of Representatives;

(4) one member of the House of Representatives, appointed by the Minority Leader of the House of Representatives;

(5) one employee of either the Division of Developmental Disabilities or the Division of Rehabilitation Services, appointed by the Secretary of Human Services;

(6) the Director of Healthcare and Family Services, or the Secretary's designee; and

(7) one representative from each of the following, appointed by the Director:

(A) a community agency that is a 14(c) certificate holder;

(B) an individual with a disability who has been or is engaged in subminimum wage activities;

(C) an employer who owns a business that employs individuals making the subminimum wage;

(D) an advocacy organization that is working to end the issuance of 14(c) certificates; and

(E) an individual with a disability who has been or is engaged in competitive integrated employment.

(c) The Task Force shall meet at the call of the Director and shall receive administrative and other support from the Department. The Task Force shall prepare and submit to the General Assembly and the Governor, one year after the effective date of this Act and every year thereafter, a progress report describing the progress the Task Force has made in achieving its goals described in subsection (a).

Section 90. The Minimum Wage Law is amended by changing Section 5 as follows:

(820 ILCS 105/5) (from Ch. 48, par. 1005)

Sec. 5.

(a) The Director may provide by regulation for the employment in any occupation of individuals whose earning capacity is impaired by age, or physical or mental deficiency or injury at such wages lower than the minimum wage rate provided in Section 4, subsection (a), as he may find appropriate to prevent curtailment of opportunities for employment, to avoid undue hardship, and to safeguard the minimum wage rate of this Act, except that no person who maintains a production level within the limits required of other employees may be paid at less than the minimum wage. No employee shall be employed at wages fixed pursuant to this Section except under a special license issued under applicable regulations of the Director.

(b) The Director may provide by regulation for the employment in any occupation of individuals with a mental or physical disability a Competitive Integrated Employment Transformation Grant to an eligible employer meeting the requirements under the Employment Choice for All Act. The Department shall provide technical assistance to employers who are transforming from employing individuals with disabilities using 14(c) certificates to providing competitive integrated employment paying a minimum wage.

(Source: P.A. 77-1451.)

Section 99. Effective date. This Act takes effect January 1, 2030.