Public Act 103-1060
Public Act 1060 103RD GENERAL ASSEMBLY | Public Act 103-1060 | HB0793 Enrolled | LRB103 04385 RPS 49391 b |
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| AN ACT concerning State government. | Be it enacted by the People of the State of Illinois, | represented in the General Assembly: | Section 1. Reference to Act. This Act may be referred to as | the Dignity in Pay Act. | Section 3. Declaration of policy and intent. | (a) Section 14(c) of the federal Fair Labor Standards Act | of 1938 provides for the employment of persons with | disabilities at wage rates below the statutory federal minimum | wage. Among those who have worked for subminimum wages in | Illinois are people with intellectual, developmental, | physical, and sensory disabilities, including those who are | blind or deaf or are diagnosed with cerebral palsy, spina | bifida, or Down syndrome. Section 14(c) authorizations result | in a national average wage of approximately $3 per hour for | workers with disabilities who have engaged in work activities | under a 14(c) wage certificate. | Data released in October 2022 from the United States | Department of Labor shows that Illinois ranks second in the | nation in the number of 14(c) certificates issued or pending, | with several thousand Illinois residents with disabilities | engaged in activities compensated below minimum wage. These | activities most often occur in congregate work centers (also |
| known as facility-based employment or sheltered workshops), | some of which may have the effect of isolating people with | disabilities from the greater community. | The Illinois Employment First Act stipulates that | "competitive and integrated employment shall be considered the | first option when serving persons with disabilities of working | age." Across the United States, 18 states eliminated, phased | out, or modified the authority of employers to pay subminimum | wages to people with disabilities. | Ensuring that Illinois maximizes opportunities for persons | with disabilities to secure gainful employment is a critical | element to achieving the requirements of the Illinois | Employment First Act. The Workforce Innovation and Opportunity | Act (Public Law 113-128) and Section 7 of the Rehabilitation | Act of 1973 (29 U.S.C. 705) define competitive integrated | employment as "work that is performed on a full-time or | part-time basis for which an individual is: compensated at a | rate that shall be not less than the rate specified in the | applicable State or local minimum wage law; and is not 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; or in the case of an | individual who is self-employed, yields an income that is | comparable to the income received by other individuals who are |
| not individuals with disabilities, and who are self-employed | in similar occupations or on similar tasks and who have | similar training, experience, and skills; and is eligible for | the level of benefits provided to other employees". | Paying workers with disabilities subminimum wages | perpetuates harmful, unfair, and inaccurate stereotypes about | the potential and worth of people with disabilities, affects | their capacity to earn wages equivalent to those of their | peers without disabilities, and diminishes the expectations | about and perceived value of their contributions to the | workforce and society. | Eliminating subminimum wage employment for people with | disabilities, coupled with the implementation of service | enhancements and policy changes, is crucial for advancing | economic justice and accelerating dignity and self-sufficiency | for all people. It ensures that those currently employed in | subminimum wage jobs can transition to competitive integrated | employment, supported employment, or integrated community | activities aligned with their individual aspirations. | On October 4, 2021, the Governor signed Executive Order 26 | (2021), which requires all contracts through the Illinois | State Use Program to provide payment to workers at no less than | the applicable local, if higher, or Illinois minimum wage for | all employees performing work on the contract. | (b) Additional service enhancements, rate adjustments, | investments, and policy changes are needed to address systemic |
| barriers to assist persons with disabilities to access | increased employment opportunities and earn at or above the | Illinois minimum wage. | (c) Collaborative partnerships between State agencies and | key stakeholder organizations, including, but not limited to, | those noted in this amendatory Act of the 103rd General | Assembly, shall result in a complete phase out of Illinois | Section 14(c) certificates on December 31, 2029. | Section 5. The Department of Human Services Act is amended | by adding Sections 1-90 and 1-95 as follows: | (20 ILCS 1305/1-90 new) | Sec. 1-90. Program rates. The Department of Healthcare and | Family Services, in partnership with the Department of Human | Services, shall file an amendment to the Home and | Community-Based Services Waiver Program for Adults with | Developmental Disabilities authorized under Section 1915(c) of | the Social Security Act to increase the rates for the | following waiver services: Supported Employment - Small Group | Supports. The amendment shall be filed by January 1, 2025. | Implementation of any rate increase to the Supported | Employment - Small Group Supports service is subject to | federal approval of the amendment filed as required in this | Section. |
| (20 ILCS 1305/1-95 new) | Sec. 1-95. Transition Program Grants. | (a) The Department of Human Services shall establish a | Section 14(c) transition program to award transition grants to | eligible community agencies with active or pending Section | 14(c) certificates to aid in the transition away from | subminimum wages for workers with disabilities. The goal of | Section 14(c) transition program grants is to develop new | opportunities and programs and grow capacity to respond to the | needs of individuals with disabilities in their geographic | area, including, but not limited to, supported employment, | customized employment, self-employment, entrepreneurship, and | diverse day programs that support meaningful days, choice, and | community integration. | (b) Eligibility for Section 14(c) transition program | grants shall be contingent upon community agencies submitting | a transition plan. The Department shall provide example plans | that community agencies may adapt. By January 1, 2025, the | transition program grant funds shall be awarded in compliance | with the Grant Accountability and Transparency Act. | (c) Grants shall be made by the Department to eligible | holders of Section 14(c) certificates, consistent with the | Grant Accountability and Transparency Act, to assist workers | with disabilities who are working for subminimum wages to | transition to competitive integrated employment and to support | eligible Section 14(c) certificate holders. Grant funding |
| shall be used to: | (1) provide competitive integrated employment; | (2) assist individuals with disabilities who were | employed at subminimum wages to find and retain | competitive integrated employment; or | (3) provide integrated community participation and | wraparound services for individuals with disabilities who | were employed at subminimum wages. | (d) Beginning on January 1, 2026, the Department of Human | Services shall provide an annual status report to the Governor | and the General Assembly, incorporating data from each grant | recipient, to demonstrate progress toward identified | benchmarks. | Section 7. The Employment and Economic Opportunity for | Persons with Disabilities Task Force Act is amended by adding | Section 16 as follows: | (20 ILCS 4095/16 new) | Sec. 16. Multi-year plan toward elimination of Section | 14(c) certificates. By no later than July 1, 2025, the | Employment and Economic Opportunity for Persons with | Disabilities Task Force, with the Illinois Council on | Developmental Disabilities and an academic partner with | relevant subject matter expertise, shall create a multi-year | plan of recommended actions, outcomes, and benchmarks in |
| accordance with paragraphs (1) through (3) to help the State | successfully eliminate on and after December 31, 2029 the use | of certificates authorized under Section 14(c) of the federal | Fair Labor Standards Act of 1938. | (1) The multi-year plan shall include, but not be | limited to, all of the following: | (A) Identification, gathering, and analytics of | data to inform the work of the Task Force, including, | but not limited to: | (i) the total number of entities utilizing | Section 14(c) certificates; | (ii) the total number of persons with | disabilities who are paid subminimum wages and the | total number of persons with disabilities who are | paid at least the applicable minimum wages; | (iii) the total number of persons with | disabilities working in facility-based employment | paid at or above minimum wage. | (B) Recommended actions, including additional | statutory, regulatory, or policy measures, including | State-supported activities to assist providers in | employing people with disabilities. | (C) Recommended measurable outcomes for each year | of the plan. | (D) Recommended benchmarks for each year of the | plan. |
| (2) In developing the multi-year plan, the Task Force | shall consider: | (A) The total available approximate number of | people with disabilities paid subminimum wages who | want to transition to competitive integrated | employment with supports. | (B) The total available approximate number of | people with disabilities who do not wish to pursue | competitive integrated employment and who would | benefit from alternative meaningful day opportunities. | (C) Existing State employment programs designed to | support workers with disabilities. | (D) An evaluation of capacity limits in providers' | contracts with the Department of Human Services' | Division of Rehabilitation Services and Division of | Developmental Disabilities. | (E) The personal choice of persons with | disabilities regarding employment goals and planning | in person-centered planning processes. | (F) The use of existing and emerging technologies | that could assist persons with disabilities in | achieving employment goals. | (G) The impact of access to reliable | transportation on achieving employment goals and | ongoing employment. | (H) An analysis that shall include data on: |
| (i) the activities of youth with disabilities | within one year of exiting high school; | (ii) the count of schools holding Student | Transition Employment Program and Pre-Employment | Transition Services contracts with the Division of | Rehabilitation Services that includes the count of | students with ongoing cases who transition to | adult services; | (iii) the number of students 14 1/2 through 22 | years of age with individualized education plans | indicating a need for home and community-based | adult services. | (I) The potential changes to State law, | regulations, or policies to protect means-tested | benefits for persons with disabilities as they pursue | employment-related goals. | (J) Dissemination of information regarding | employment supports and benefits to individuals with | disabilities, consumers of public services, employers, | service providers, and State and local agency staff. | Information shall include the Ticket to Work program, | Work Incentives Planning and Assistance Programs, | Illinois ABLE, and Health Benefits for Workers with | Disabilities. | (K) The education and training needs of staff | working in community-based provider agencies toward |
| advancing competitive, integrated work options for | persons with disabilities, in areas including, but not | limited to: | (i) employment options; | (ii) non-employment options; | (iii) home and community-based services and | supports; | (iv) self-advocacy; | (v) benefits planning; | (vi) asset building; | (vii) assistive technology; | (viii) certification programs; and | (ix) mental health services and supports. | (L) Agreements between State agencies and | community-based providers that promote flexibility and | allow for expansion. | (M) Ongoing review of rates and reimbursements | that support various employment programs for persons | with disabilities, including competitive, integrated | employment, customized employment, and supported | employment. | (N) The need to further engage the private | business community to hire persons with disabilities | through incentives that may include specialized | educational opportunities, distribution of literature | at points of interaction with government licensing |
| agencies, and tax incentives to hiring persons with | disabilities. | (O) The availability and need for adequate | benefits planning services for workers with | disabilities. | (P) The availability and need for meaningful day | services for individuals with disabilities who prefer | not to work. | (Q) Enhanced service and support needs of aging | adults with developmental disabilities who have been | engaged in subminimum wage work, including, but not | limited to, activities of daily living, behavioral | supports, and medical supports, including | administration of medications while participating in | employment supports and community day services through | the Department of Human Services. | (3) In developing the multi-year plan, the Task Force | shall consult with employment service providers, people | with disabilities, disability trade associations, and | disability advocacy organizations. | (4) The Task Force shall submit the multi-year plan to | the Governor and the General Assembly by no later than | July 1, 2025. Annual reports on implementation shall be | required by no later than January 1 of each subsequent | year through January 1, 2030. | (5) The Task Force shall provide annual updates to the |
| Governor and the General Assembly through January 1, 2035 | on the employment of persons with disabilities in | Illinois. | (6) The Governor shall appoint at least 2 additional | members to the Task Force who represent organizations that | are current Section 14(c) certificate holders. The | Director of Labor, or the Director's designee, shall serve | on the Task Force in a non-voting, advisory capacity until | July 1, 2025. | Section 20. The Business Enterprise for Minorities, Women, | and Persons with Disabilities Act is amended by changing | Section 2 as follows: | (30 ILCS 575/2) | (Section scheduled to be repealed on June 30, 2029) | Sec. 2. Definitions. | (A) For the purpose of this Act, the following terms shall | have the following definitions: | (1) "Minority person" shall mean a person who is a | citizen or lawful permanent resident of the United States | and who is any of the following: | (a) American Indian or Alaska Native (a person | having origins in any of the original peoples of North | and South America, including Central America, and who | maintains tribal affiliation or community attachment). |
| (b) Asian (a person having origins in any of the | original peoples of the Far East, Southeast Asia, or | the Indian subcontinent, including, but not limited | to, Cambodia, China, India, Japan, Korea, Malaysia, | Pakistan, the Philippine Islands, Thailand, and | Vietnam). | (c) Black or African American (a person having | origins in any of the black racial groups of Africa). | (d) Hispanic or Latino (a person of Cuban, | Mexican, Puerto Rican, South or Central American, or | other Spanish culture or origin, regardless of race). | (e) Native Hawaiian or Other Pacific Islander (a | person having origins in any of the original peoples | of Hawaii, Guam, Samoa, or other Pacific Islands). | (2) "Woman" shall mean a person who is a citizen or | lawful permanent resident of the United States and who is | of the female gender. | (2.05) "Person with a disability" means a person who | is a citizen or lawful resident of the United States and is | a person qualifying as a person with a disability under | subdivision (2.1) of this subsection (A). | (2.1) "Person with a disability" means a person with a | severe physical or mental disability that: | (a) results from: | amputation, | arthritis, |
| autism, | blindness, | burn injury, | cancer, | cerebral palsy, | Crohn's disease, | cystic fibrosis, | deafness, | head injury, | heart disease, | hemiplegia, | hemophilia, | respiratory or pulmonary dysfunction, | an intellectual disability, | mental illness, | multiple sclerosis, | muscular dystrophy, | musculoskeletal disorders, | neurological disorders, including stroke and | epilepsy, | paraplegia, | quadriplegia and other spinal cord conditions, | sickle cell anemia, | ulcerative colitis, | specific learning disabilities, or | end stage renal failure disease; and |
| (b) substantially limits one or more of the | person's major life activities. | Another disability or combination of disabilities may | also be considered as a severe disability for the purposes | of item (a) of this subdivision (2.1) if it is determined | by an evaluation of rehabilitation potential to cause a | comparable degree of substantial functional limitation | similar to the specific list of disabilities listed in | item (a) of this subdivision (2.1). | (3) "Minority-owned business" means a business which | is at least 51% owned by one or more minority persons, or | in the case of a corporation, at least 51% of the stock in | which is owned by one or more minority persons; and the | management and daily business operations of which are | controlled by one or more of the minority individuals who | own it. | (4) "Women-owned business" means a business which is | at least 51% owned by one or more women, or, in the case of | a corporation, at least 51% of the stock in which is owned | by one or more women; and the management and daily | business operations of which are controlled by one or more | of the women who own it. | (4.1) "Business owned by a person with a disability" | means a business that is at least 51% owned by one or more | persons with a disability and the management and daily | business operations of which are controlled by one or more |
| of the persons with disabilities who own it. A | not-for-profit agency for persons with disabilities that | is exempt from taxation under Section 501 of the Internal | Revenue Code of 1986 is also considered a "business owned | by a person with a disability". | (4.2) "Council" means the Business Enterprise Council | for Minorities, Women, and Persons with Disabilities | created under Section 5 of this Act. | (4.3) "Commission" means, unless the context clearly | indicates otherwise, the Commission on Equity and | Inclusion created under the Commission on Equity and | Inclusion Act. | (4.4) "Certified vendor" means a minority-owned | business, women-owned business, or business owned by a | person with a disability that is certified by the Business | Enterprise Program. | (4.5) "Subcontractor" means a person or entity that | enters into a contractual agreement with a prime vendor to | provide, on behalf of the prime vendor, goods, services, | real property, or remuneration or other monetary | consideration that is the subject of the primary State | contract. "Subcontractor" includes a sublessee under a | State contract. | (4.6) "Prime vendor" means any person or entity having | a contract that is subject to this Act with a State agency | or public institution of higher education. |
| (5) "State contracts" means all contracts entered into | by the State, any agency or department thereof, or any | public institution of higher education, including | community college districts, regardless of the source of | the funds with which the contracts are paid, which are not | subject to federal reimbursement. "State contracts" does | not include contracts awarded by a retirement system, | pension fund, or investment board subject to Section | 1-109.1 of the Illinois Pension Code. This definition | shall control over any existing definition under this Act | or applicable administrative rule. | "State construction contracts" means all State | contracts entered into by a State agency or public | institution of higher education for the repair, | remodeling, renovation or construction of a building or | structure, or for the construction or maintenance of a | highway defined in Article 2 of the Illinois Highway Code. | (6) "State agencies" shall mean all departments, | officers, boards, commissions, institutions and bodies | politic and corporate of the State, but does not include | the Board of Trustees of the University of Illinois, the | Board of Trustees of Southern Illinois University, the | Board of Trustees of Chicago State University, the Board | of Trustees of Eastern Illinois University, the Board of | Trustees of Governors State University, the Board of | Trustees of Illinois State University, the Board of |
| Trustees of Northeastern Illinois University, the Board of | Trustees of Northern Illinois University, the Board of | Trustees of Western Illinois University, municipalities or | other local governmental units, or other State | constitutional officers. | (7) "Public institutions of higher education" means | the University of Illinois, Southern Illinois University, | Chicago State University, Eastern Illinois University, | Governors State University, Illinois State University, | Northeastern Illinois University, Northern Illinois | University, Western Illinois University, the public | community colleges of the State, and any other public | universities, colleges, and community colleges now or | hereafter established or authorized by the General | Assembly. | (8) "Certification" means a determination made by the | Council or by one delegated authority from the Council to | make certifications, or by a State agency with statutory | authority to make such a certification, that a business | entity is a business owned by a minority, woman, or person | with a disability for whatever purpose. A business owned | and controlled by women shall be certified as a | "woman-owned business". A business owned and controlled by | women who are also minorities shall be certified as both a | "women-owned business" and a "minority-owned business". | (9) "Control" means the exclusive or ultimate and sole |
| control of the business including, but not limited to, | capital investment and all other financial matters, | property, acquisitions, contract negotiations, legal | matters, officer-director-employee selection and | comprehensive hiring, operating responsibilities, | cost-control matters, income and dividend matters, | financial transactions and rights of other shareholders or | joint partners. Control shall be real, substantial and | continuing, not pro forma. Control shall include the power | to direct or cause the direction of the management and | policies of the business and to make the day-to-day as | well as major decisions in matters of policy, management | and operations. Control shall be exemplified by possessing | the requisite knowledge and expertise to run the | particular business and control shall not include simple | majority or absentee ownership. | (10) "Business" means a business that has annual gross | sales of less than $150,000,000 as evidenced by the | federal income tax return of the business. A certified | vendor with gross sales in excess of this cap may apply to | the Council for certification for a particular contract if | the vendor can demonstrate that the contract would have | significant impact on businesses owned by minorities, | women, or persons with disabilities as suppliers or | subcontractors or in employment of minorities, women, or | persons with disabilities. Firms with gross sales in |
| excess of this cap that are granted certification by the | Council shall be granted certification for the life of the | contract, including available renewals. | (11) "Utilization plan" means an attachment that is | made to all bids or proposals and that demonstrates the | bidder's or offeror's efforts to meet the | contract-specific Business Enterprise Program goal. The | utilization plan shall indicate whether the prime vendor | intends to meet the Business Enterprise Program goal | through its own performance, if it is a certified vendor, | or through the use of subcontractors that are certified | vendors. The utilization plan shall demonstrate that the | Vendor has either: (1) met the entire contract goal or (2) | requested a full or partial waiver of the contract goal. | If the prime vendor intends to use a subcontractor that is | a certified vendor to fulfill the contract goal, a | participation agreement executed between the prime vendor | and the certified subcontractor must be included with the | utilization plan. | (12) "Business Enterprise Program" means the Business | Enterprise Program of the Commission on Equity and | Inclusion. | (13) "Good faith effort" means actions undertaken by a | vendor to achieve a contract specific Business Enterprise | Program goal that, by scope, intensity, and | appropriateness to the objective, can reasonably be |
| expected to fulfill the program's requirements. | (B) When a business is owned at least 51% by any | combination of minority persons, women, or persons with | disabilities, even though none of the 3 classes alone holds at | least a 51% interest, the ownership requirement for purposes | of this Act is considered to be met. The certification | category for the business is that of the class holding the | largest ownership interest in the business. If 2 or more | classes have equal ownership interests, the certification | category shall be determined by the business. | (Source: P.A. 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23; | 103-570, eff. 1-1-24.) | Section 23. The Illinois Public Aid Code is amended by | changing Section 5-35 as follows: | (305 ILCS 5/5-35) | Sec. 5-35. Personal needs allowance. | (a) For a person who is a resident in a facility licensed | under the ID/DD Community Care Act, the Community-Integrated | Living Arrangements Licensure and Certification Act, the | Specialized Mental Health Rehabilitation Act of 2013, or the | MC/DD Act for whom payments are made under this Article | throughout a month and who is determined to be eligible for | medical assistance under this Article, the State shall pay an | amount in addition to the minimum monthly personal needs |
| allowance authorized under Section 1902(q) of Title XIX of the | Social Security Act (42 U.S.C. 1396a(q) 1396(q) ) so that the | person's total monthly personal needs allowance from both | State and federal sources equals $60. | (b) Beginning January 1, 2025, for a person who is a | resident in a facility licensed under the Community-Integrated | Living Arrangements Licensure and Certification Act for whom | payments are made under this Article throughout a month and | who is determined to be eligible for medical assistance under | this Article, the State shall pay an amount in addition to the | minimum monthly personal needs allowance authorized under | Section 1902(q) of Title XIX of the Social Security Act so that | the person's total monthly personal needs allowance from both | State and federal sources equals $100. | (c) Beginning January 1, 2026, the personal needs | allowance described in subsection (b) shall increase annually | at the same rate as the Social Security cost-of-living | adjustment to take effect on January 1 of each year. | (Source: P.A. 100-23, eff. 7-6-17.) | Section 25. The Minimum Wage Law is amended by changing | Section 10 as follows: | (820 ILCS 105/10) (from Ch. 48, par. 1010) | Sec. 10. (a) The Director shall make and revise | administrative regulations, including definitions of terms, as |
| the Director he deems appropriate to carry out the purposes of | this Act, to prevent the circumvention or evasion thereof, and | to safeguard the minimum wage established by the Act. | Regulations governing employment of learners may be issued | only after notice and opportunity for public hearing, as | provided in subsection (c) of this Section. | (b) In order to prevent curtailment of opportunities for | employment, avoid undue hardship, and safeguard the minimum | wage rate under this Act, the Director may also issue | regulations providing for the employment of workers with | disabilities and learners at wages lower than the wage rate | applicable under this Act, under permits and for such periods | of time as specified therein; and providing for the employment | of learners at wages lower than the wage rate applicable under | this Act as follows: | (1) The Director may issue regulations for the | employment of workers with disabilities at wages lower | than the wage rate applicable under this Act, under | permits and for such periods of time as specified therein. | Such . However, such regulation shall not permit lower | wages for persons with disabilities on any basis that is | unrelated to such person's ability resulting from his | disability, and such regulation may be issued only after | notice and opportunity for public hearing as provided in | subsection (c) of this Section. All certificates issued | for the employment of workers with disabilities in |
| accordance with this Section in effect on December 31, | 2029, shall expire on that date, and the Director may not | issue any such certificates after that date. | (2) The Director may issue regulations for the | employment of learners at wages lower than the wage rate | applicable under this Act. Regulations governing | employment of learners may be issued only after notice and | opportunity for public hearing, as provided in subsection | (c) of this Section. | (c) Prior to the adoption, amendment or repeal of any rule | or regulation by the Director under this Act, except | regulations which concern only the internal management of the | Department of Labor and do not affect any public right | provided by this Act, the Director shall give proper notice to | persons in any industry or occupation that may be affected by | the proposed rule or regulation, and hold a public hearing on | the his proposed action at which any such affected person, or | the person's his duly authorized representative, may attend | and testify or present other evidence for or against such | proposed rule or regulation. Rules and regulations adopted | under this Section shall be filed with the Secretary of State | in compliance with the Illinois Administrative Procedure Act | "An Act concerning administrative rules", as now or hereafter | amended . | (d) The commencement of proceedings by any person | aggrieved by an administrative regulation issued under this |
| Act does not, unless specifically ordered by the Court, | operate as a stay of that administrative regulation against | other persons. The Court shall not grant any stay of an | administrative regulation unless the person complaining of | such regulation files in the Court an undertaking with a | surety or sureties satisfactory to the Court for the payment | to the employees affected by the regulation, in the event such | regulation is affirmed, of the amount by which the | compensation such employees are entitled to receive under the | regulation exceeds the compensation they actually receive | while such stay is in effect. | (e) The Department may adopt emergency rules in accordance | with Section 5-45 of the Illinois Administrative Procedure Act | to implement the changes made by this amendatory Act of the | 101st General Assembly. | (Source: P.A. 103-363, eff. 7-28-23.) | (820 ILCS 105/5 rep.) | Section 30. The Minimum Wage Law is amended by repealing | Section 5. | Section 99. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 01/21/2025
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