Bill Text: IL HB3340 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Department of Human Services Act. Contains a declaration of policy and intent. Requires the Department of Human Services, in partnership with specified State agencies, to develop and implement a plan to phase out, by July 1, 2024, authorizations under the Minimum Wage Law to pay an employee with a disability less than the minimum wage. Requires the Department to consult with specified organizations when implementing the phase-out plan. Requires the Secretary of Human Services to submit reports to the Governor and the General Assembly on the benchmarks and status of achieving the outcomes included in the phase-out plan and recommendations for funding levels or other resources necessary to implement the phase-out plan. Amends the Department of Labor Law. Prohibits the Director of Labor from authorizing a work activities center or other sheltered workshop to pay an employee who has a disability less than the minimum wage unless certain requirements are met. Amends the Illinois Council on Developmental Disabilities Law. Requires the Illinois Council on Developmental Disabilities to commission an independent study of the phase-out plan; determine whether the plans are having their intended effects; and make recommendations for possible changes in State law or policy regarding the employment of individuals with disabilities. Requires the Council to report its findings and recommendations to the Governor and the General Assembly by July 1, 2023. Amends the Minimum Wage Law. Provides that the State of Illinois shall not fund any entity that pays individuals less than the minimum wage under a certificate issued by the United States Department of Labor that authorizes Community Rehabilitation Programs to pay individuals less than the wage otherwise required for the individuals under federal law. Effective immediately, except that the provisions amending the Minimum Wage Law take effect July 1, 2024.

Spectrum: Partisan Bill (Democrat 31-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB3340 Detail]

Download: Illinois-2019-HB3340-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3340 Introduced , by Rep. Theresa Mah SYNOPSIS AS INTRODUCED:
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Amends the Department of Human Services Act. Contains a declaration of policy and intent. Requires the Department of Human Services, in partnership with specified State agencies, to develop and implement a plan to phase out, by July 1, 2024, authorizations under the Minimum Wage Law to pay an employee with a disability less than the minimum wage. Requires the Department to consult with specified organizations when implementing the phase-out plan. Requires the Secretary of Human Services to submit reports to the Governor and the General Assembly on the benchmarks and status of achieving the outcomes included in the phase-out plan and recommendations for funding levels or other resources necessary to implement the phase-out plan. Amends the Department of Labor Law. Prohibits the Director of Labor from authorizing a work activities center or other sheltered workshop to pay an employee who has a disability less than the minimum wage unless certain requirements are met. Amends the Illinois Council on Developmental Disabilities Law. Requires the Illinois Council on Developmental Disabilities to commission an independent study of the phase-out plan; determine whether the plans are having their intended effects; and make recommendations for possible changes in State law or policy regarding the employment of individuals with disabilities. Requires the Council to report its findings and recommendations to the Governor and the General Assembly by July 1, 2023. Amends the Minimum Wage Law. Provides that the State of Illinois shall not fund any entity that pays individuals less than the minimum wage under a certificate issued by the United States Department of Labor that authorizes Community Rehabilitation Programs to pay individuals less than the wage otherwise required for the individuals under federal law. Effective immediately, except that the provisions amending the Minimum Wage Law take effect July 1, 2024.
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A BILL FOR
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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. Declaration of policy and intent. Section 14(c)
of the Fair Labor Standards Act of 1938 allows employers to pay
less than the minimum wage to workers who have disabilities.
More than 100 Illinois entities now employ over 10,000
individuals with disabilities and pay those individuals a
subminimum wage. Among those now working for less than minimum
wage are people with autism, cerebral palsy, spina bifida, Down
syndrome, and other intellectual, developmental, and sensory
disabilities including blindness and deafness. 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".
Section 5. The Department of Human Services Act is amended
by adding Sections 1-75, 1-80, and 1-85 as follows:
(20 ILCS 1305/1-75 new)
Sec. 1-75. Phase-out plan.
(a) The Department, in partnership with other State
agencies, including the Department of Labor, the Department of
Healthcare and Family Services, the Department of Central

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Management Services, the Department of Commerce and Economic
Opportunity, the Department of Employment Security, and the
State Board of Education, shall develop and implement a plan to
phase out, on or before July 1, 2024, authorizations under
Sections 5 and 10 of the Minimum Wage Law to pay an employee
with a disability less than the minimum wage otherwise required
for the employee under Illinois law.
(b) The phase-out plan shall include all of the following:
(1) Benchmarks and desired outcomes for each year of
the phase-out.
(2) A list of the resources necessary, including
changes to State policy or service and program
reimbursement rates, to ensure that individuals with
disabilities receive support according to the needs and
preferences of the individuals and in an integrated
setting, regardless of the nature or severity of the
individuals' disabilities.
(3) A description of alternative revenue options,
including non-subminimum wage programs, for holders of
certificates issued under Section 14(c) of the Fair Labor
Standards Act of 1938.
(4) An examination of the measures needed to improve
future employment and day service options for people with
disabilities, including recommendations for new or
reformulated day service strategies and approaches
designed to strengthen statewide capacity to assure

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informed choice for integrated employment and integrated
avocational leisure and volunteer options for every
individual with a disability.
(5) A timeline and estimated costs for comprehensive
training and certification of individual staff in
supported employment and customized employment. The
training shall also include benefits counseling and
education to reduce misinformation that promotes
dependency and discourages income-producing work. Training
audiences shall include the following persons and
organizations:
(A) Counselors from the Department's Division of
Rehabilitation Services.
(B) Staff from the Department's Division of
Developmental Disabilities.
(C) Organizations affiliated with the Department's
Division of Rehabilitation Services or Division of
Developmental Disabilities that are certified to serve
persons with disabilities by the State or federal
government.
(D) High school special education and transition
staff.
(E) Independent Service Coordination agency staff.
(F) Community Work Incentives Coordinators.
Training content developed or approved by federal
agencies shall be used, if possible, including training

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content from the following agencies:
(i) The Office of Disability Employment Policy in
the United States Department of Labor.
(ii) The Rehabilitation Services Administration in
the United States Department of Education.
(iii) The Administration for Community Living in
the United States Department of Health and Human
Services.
(iv) The Centers for Medicare and Medicaid
Services in the United States Department of Health and
Human Services.
(6) A proposal to modify the Business Enterprise
Program and the State Use Program to ensure future State
contracts are not awarded to entities paying workers less
than the minimum wage and instead are awarded to entities
that promote fully integrated work opportunities.
(7) Application for and use of all federal and State
funding programs, including programs available under
Medicaid waiver amendments and resources under the federal
Workforce Innovation and Opportunity Act, to assist
individuals with disabilities to obtain competitive,
integrated employment.
(8) The tracking of outcomes of individuals with
disabilities on the basis of:
(A) wages;
(B) hours worked;

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(C) unemployment rates;
(D) the number of individuals who move from
subminimum wage positions to competitive, integrated
employment;
(E) the number of individuals who move from
subminimum wage positions to nonpaying activities;
(F) the number of hours of paid supports; and
(G) the use and costs of Medicaid for acute health
care and outpatient mental health care costs.
(9) In the formulation of the phase-out plan, special
attention must be paid to building adequate capacity in the
disability provider ecosystem to ensure individuals with
all levels of disability can secure competitive,
integrated employment as defined in the federal Workforce
Innovation and Opportunity Act. Special attention must be
given to prevent any systematic shift of income-earning
activity to unpaid day habilitation activity.
(c) In implementing the phase-out plan, the Department
shall consult with:
(1) the State agencies listed in subsection (a);
(2) the ARC of Illinois;
(3) the Illinois Association of Rehabilitation
Facilities;
(4) the Illinois Network of Centers for Independent
Living;
(5) the Illinois Task Force on Employment and Economic

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Opportunity for Persons with Disabilities;
(6) the Illinois Self-Advocacy Alliance;
(7) the Institute on Public Policy for People with
Disabilities;
(8) the Great Lakes ADA Center;
(9) holders of certificates issued to Community
Rehabilitation Programs under Section 14(c) of the Fair
Labor Standards Act of 1938;
(10) the Association of People Supporting Employment
First;
(11) the Illinois Association of the Deaf;
(12) the University Center of Excellence in
Developmental Disabilities;
(13) the National Federation of the Blind of Illinois;
and
(14) any other relevant stakeholders.
(d)(1) On or before January 1, 2020, the Secretary of Human
Services shall submit the phase-out plan to the Governor and
the General Assembly.
(2) On or before January 1, 2021, January 1, 2022, and
January 1, 2023, the Secretary shall report to the Governor and
the General Assembly on:
(A) the benchmarks and status of achieving the outcomes
included in the phase-out plan; and
(B) recommendations for funding levels or other
resources necessary to implement the phase-out plan.

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(20 ILCS 1305/1-80 new)
Sec. 1-80. Customized work plans.
(a)(1) For each individual who is paid less than the
minimum wage under Sections 5 and 10 of the Minimum Wage Law,
the Department shall develop a written individualized
customized work plan on or before January 1, 2021 that
addresses how community integration and employment will be
accomplished.
(2) The customized work plan shall be developed with input
from the individual receiving services, and, where applicable,
from the individual's family, the individual's vocational
rehabilitation counselor, and any staff from the Department's
Division of Developmental Disabilities or a Pre-Admission
Screening/Independent Service Coordination agency who have
interacted with the individual concerning employment and other
life goals.
(3) The Department shall use appropriate communication
devices and techniques, including sign language, to facilitate
the involvement of the individual in the development of each
customized work plan.
(b) Customized work plans shall include all of the
following:
(1) A recommendation on jobs and careers that allow the
job seeker to thrive and contribute to an employer's needs.
(2) A description of the supports required for the

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individual to work, if so desired by the individual, in the
most integrated setting appropriate to complete the tasks
and requirements of his or her job with minimal intrusion.
(3) A listing of barriers that prevent the individual
from receiving the services and supports required for the
individual to work in the most integrated setting
appropriate to meet the individual's needs, including:
(A) barriers to accessing funding and resources,
including for staffing, transportation, and other
needed services and supports;
(B) decision-making by the individual or the
individual's representative, as appropriate;
(C) barriers to accessing medical or behavioral
support needs;
(D) family members' concerns or opposition; and
(E) options for activity other than compensated
employment in the person's life and community.
(4) An update on the status and progress made toward
addressing and resolving barriers identified under
paragraph (3) in a previous customized work plan.
(c) The Department shall develop, in consultation with
interested stakeholders, the protocol and format for the
customized work plan.
(d) On an annual basis and at any other time requested by
an individual who is paid less than the minimum wage under
Sections 5 and 10 of the Minimum Wage Law, the individual and

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the individual's vocational rehabilitation counselor, or other
responsible party designated by the Secretary, shall discuss
the most integrated employment setting that is appropriate for
the individual in accordance with the federal Americans with
Disabilities Act. The annual review shall document in the
individual's customized work plan:
(1) any discussions held under this subsection; and
(2) any recommendations that resulted from the
discussions.
(e)(1) The Department shall track the progress of
individuals who have customized work plans by collecting the
following data:
(A) the wages of the individuals;
(B) the unemployment rates of the individuals;
(C) the number of individuals who moved from subminimum
wage positions to competitive, integrated employment;
(D) the number of individuals who moved from subminimum
wage positions to nonpaying activities; and
(E) the health costs, including outpatient mental
health costs, paid by Medicaid for the individuals.
(2) On or before January 1, 2022, January 1, 2023, and
January 1, 2024, the Secretary shall submit to the Governor and
the General Assembly a summary of the data collected under
paragraph (1) on a statewide and regional basis. The report to
the General Assembly shall be filed with the Clerk of the House
of Representatives and the Secretary of the Senate.

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(20 ILCS 1305/1-85 new)
Sec. 1-85. 14c Worker Protection Fund.
(a) The 14c Worker Protection Fund is created as a special
fund in the State treasury. Moneys in the Fund shall be used,
subject to appropriation, by the Department to subsidize wages
paid to workers with intellectual and developmental
disabilities who were or could be employed in special minimum
wage positions under Section 14(c) of the Fair Labor Standards
Act of 1938.
(b) The Department shall adopt rules establishing a process
for the administration of the Fund in an equitable and
transparent manner to ensure no worker previously employed in a
subminimum work position loses any opportunity for meaningful
activity or employment experiences after the effective date of
this amendatory Act of the 101st General Assembly.
(c) A minimum percentage of the budget for Department's
Division of Developmental Disabilities shall be committed to
the Fund as follows:
(1) in fiscal years 2020 and 2021, 1%;
(2) in fiscal year 2022, 2%;
(3) in fiscal year 2023, 3%;
(4) in fiscal year 2024 and each fiscal year
thereafter, 4%.
Section 10. The Department of Labor Law of the Civil

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Administrative Code of Illinois is amended by adding Section
1505-215 as follows:
(20 ILCS 1505/1505-215 new)
Sec. 1505-215. Special wage certificates; persons with
disabilities.
(a) As used in this Section:
"Director" means the Director of Labor.
"Federal certificate" means a certificate that the United
States Department of Labor issues to a work activities center
or other sheltered workshop to allow the work activities center
or sheltered workshop to pay an individual less than the wage
otherwise required for that individual under the federal Fair
Labor Standards Act of 1938.
(b)(1) Subject to the limitations in this Section, the
Director may not authorize a work activities center or other
sheltered workshop to pay an employee who has a disability less
than the minimum wage otherwise required under the Minimum Wage
Law for the employee.
(2) Beginning January 1, 2022, the Director may not
authorize a work activities center or other sheltered workshop
to pay an employee with a disability less than the minimum wage
if the work activities center or sheltered workshop was not
authorized to do so before January 1, 2021 by the United States
Department of Labor.
(c)(1) To authorize a work activities center or other

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sheltered workshop to pay less than the minimum wage, the
Director shall:
(A) issue a State certificate that sets wages for
employees of the work activities center or sheltered
workshop;
(B) accept a federal certificate for the work
activities center or sheltered workshop; or
(C) grant an exception for the work activities center
or sheltered workshop, but only if:
(i) the Director has not issued a State certificate
to the work activities center or sheltered workshop;
(ii) the work activities center or sheltered
workshop is not eligible for a federal certificate; and
(iii) the Director investigates and holds a
hearing on the exception.
(2) The Director shall accept a federal certificate if a
work activities center or other sheltered workshop submits that
federal certificate to the Director within 10 days after the
work activities center or sheltered workshop receives the
federal certificate.
(d)(1) Each certificate that the Director issues under this
Section shall state the period for which the certificate is in
effect.
(2) The acceptance of a federal certificate does not apply
automatically to an individual whom a work activities center or
other sheltered workshop continues to employ after the

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individual completes a training program that the work
activities center or sheltered workshop runs.
(e)(1) The Director may revoke acceptance of a federal
certificate if:
(A) the United States Department of Labor revokes the
federal certificate; or
(B) at any time before revocation by the Department of
Labor and after an investigation and hearing, the Director
finds good cause to revoke the acceptance.
(2) The Director shall send notice of a hearing under this
subsection, by certified mail, to the holder of the federal
certificate at least 30 days before the hearing.
Section 15. The Illinois Council on Developmental
Disabilities Law is amended by adding Section 2008 as follows:
(20 ILCS 4010/2008 new)
Sec. 2008. Independent study on phase-out and customized
work plans.
(a) The Illinois Council on Developmental Disabilities
shall:
(1) commission an independent study of the phase-out
plan and the customized work plans described in Sections
1-75 and 1-80 of the Department of Human Services Act;
(2) determine through the study:
(A) whether the plans are having their intended

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effects;
(B) how many people have transitioned from
subminimum wage work to competitive, integrated
employment opportunities;
(C) whether there are any significant, related,
regional, or demographic trends; and
(D) whether there are health care savings or costs
as a result of the plans; and
(3) make any related recommendations for possible
changes in State law or policy regarding the employment of
individuals with disabilities.
(b) On or before July 1, 2023, the Illinois Council on
Developmental Disabilities shall report its findings and
recommendations to the Governor and the General Assembly.
Section 20. 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
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)

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of this Section.
(b) (Blank). 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 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. 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.
(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 his
proposed action at which any such affected person, or 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 "An Act

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concerning administrative rules", as now or hereafter amended.
Such adopted and filed rules and regulations shall become
effective 10 days after copies thereof have been mailed by the
Department to persons in industries affected thereby at their
last known address.
(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.
(Source: P.A. 99-143, eff. 7-27-15.)
(820 ILCS 105/5 rep.)
Section 25. The Minimum Wage Law is amended by repealing
Section 5.
Section 30. The State Finance Act is amended by adding
Section 5.891 as follows:

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(30 ILCS 105/5.891 new)
Sec. 5.891. The 14c Worker Protection Fund.
Section 99. Effective date. This Act takes effect upon
becoming law, except that Sections 20 and 25 of this Act take
effect July 1, 2024.
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INDEX
Statutes amended in order of appearance