Bill
HF 538
HF 538 directs state to prioritize competitive, integrated employment for adults with disabilities and phases out subminimum wages, requiring wages at or above state minimum by Jul
Note on inconsistent metadata
- The bill header provided names HF 538 as relating to "Deadly force by peace officer modified to protect person from death." However, the full text excerpt attached to the request addresses competitive integrated employment and the phase‑out of subminimum wages for persons with disabilities. This summary is based on the substantive bill text supplied (about employment and wages for persons with disabilities). If you intended the deadly‑force bill, please provide that text or correct bill metadata.
Summary — HF 538 (introduced Feb 20, 2025)
Purpose
- HF 538 establishes a statewide policy prioritizing competitive, integrated employment as the first and preferred option for working‑age persons with disabilities, and phases out the payment of subminimum wages under federal FLSA §14(c) as implemented in state law.
Key provisions
- Policy declaration: States that ensuring full social and economic participation by persons with disabilities requires that “competitive and integrated employment” be the first and preferred option for employment‑age people with disabilities.
- Definition: “Integrated setting” (for employment outcomes) is defined as a community setting where applicants or eligible individuals interact with nondisabled individuals to the same extent nondisabled individuals in comparable positions do — excluding service providers.
- Wage standard: Prohibits an employer from paying an employee less than the minimum wage provided in state law chapter 91D pursuant to 29 U.S.C. §214(c) on or after July 1, 2026.
- 29 U.S.C. §214(c) is the federal FLSA provision that permits employers to obtain certificates to pay subminimum wages to certain workers with disabilities; HF 538 would bar use of that authority (as applied in state law) after July 1, 2026.
- Compensation language: Requires that a compensated individual be paid at or above the state minimum wage in chapter 91D, and not less than the customary wage and benefit level paid by the employer for the same or similar work performed by nondisabled employees.
- State agencies: Directs all state agencies that provide services and supports for employment to follow the policy and ensure effective implementation in programs and services.
- Non‑preference clause: Specifies that nothing in the policy requires any employer to give hiring preference to persons with disabilities.
- Administrative direction: The bill text begins to direct the Department of Inspections, Appeals, and (text truncated in provided excerpt) to take implementation steps; the full text is needed to summarize those administrative requirements.
Who is affected
- Employees with disabilities currently paid subminimum wages (often in sheltered workshops or under §14(c) certificates) — they would be entitled to at least state minimum wage by July 1, 2026.
- Employers who currently pay subminimum wages — they would need to bring affected workers up to state minimum wage or change employment models.
- State agencies and programs that fund, license, or provide employment supports — they would need to prioritize competitive integrated employment and implement programmatic changes.
- Vocational service providers, supported‑employment agencies, and sheltered workshop operators — potential operational and fiscal impacts as wage and placement practices change.
Timing and legislative status
- Introduced: February 20, 2025.
- Committee referrals / actions: Referred to Labor and Workforce (also shows earlier referral to Public Safety Finance and Policy in the metadata — likely a metadata mismatch). Subcommittee meetings held Feb 25–26, 2025. Tabled Feb 26, 2025; committee reported to adopt as amended April 7, 2025. Second reading April 7, 2025.
- Effective date: The wage prohibition applies on or after July 1, 2026 (per the text provided).
Potential impacts and considerations
- Wage increases for many workers with disabilities; improved earning and inclusion.
- Employers and service providers may face increased payroll costs and will likely need technical assistance, funding, and supports to transition workers into integrated, competitive jobs.
- State agencies will need implementation plans, monitoring, and possibly additional resources to expand supported employment services.
- The bill aligns state policy with national movements to end subminimum wages for people with disabilities, but implementation details (transition supports, enforcement, funding) will determine practical outcomes.
Sponsors and related legislation
- Primary sponsor: Representative Turek. (Author Knudsen added Feb 24, 2025.)
- Companion bill: SF 1695.
Limitations
- The provided text is incomplete (some administrative directions are truncated), and some metadata (title, referenced state names/chapters) appear inconsistent. A final summary should reference the full engrossed bill text to capture all requirements, enforcement mechanisms, and appropriations.
Compiled from official sources — confirm details with the bill’s official record.
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