Bill > SF1052

This bill prohibits employers from paying subminimum wages to employees with disabilities, effectively ending a longstanding practice that allowed employers to pay workers with disabilities less than the standard minimum wage under a special federal labor standards act provision (Section 14(c)). The bill implements this prohibition in two phases: starting August 1, 2025, employers cannot hire new employees with disabilities at less than the highest applicable minimum wage, and by August 1, 2027, all existing employees with disabilities must be paid the full minimum wage regardless of their disability. The legislation requires lead agencies to ensure these wage standards are met across day service programs, including county, Tribal, and private services. Additionally, the bill mandates reporting on current subminimum wage practices and appropriates $38,000 in fiscal year 2026 and $75,000 in fiscal year 2027 to enhance the MnCHOICES system to include employment-related materials. This change aims to promote fair compensation and improve employment opportunities for workers with disabilities by eliminating a practice that has historically allowed for discriminatory wage practices.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1052&ssn=0&y=2025