Pritzker Eliminates Subminimum Wage for Disabled Workers
By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published February 4, 2025
Last month, Governor J.B. Pritzker signed the Dignity in Pay Act, eliminating the subminimum wage for workers with disabilities. This new law brings changes to compensation practices across the state and aligns Illinois with broader efforts to promote workplace inclusion for disabled workers.
Historically, under Section 14(c) of the federal Fair Labor Standards Act, employers could legally pay workers with disabilities less than the minimum wage. This practice was originally intended to provide employment opportunities for individuals with disabilities. However, recent discussions have focused on the importance of equitable wages and workplace inclusion. By phasing out the subminimum wage, Illinois joins eighteen other states in revising wage policies for workers with disabilities.
The new Dignity in Pay Act aims to eliminate subminimum wages for people with disabilities over a phased five-year timeframe concluding on December 31, 2029. The official transition plan has not yet been released. The Dignity in Pay Act Task Force will be providing more information on or before July 1, 2025. In the meantime, the Department of Human Services will work to provide grant programs that will help employers receive funding, training, and support to increase employment options for workers with disabilities and discontinue subminimum wage labor.
HR Source members with questions about this new law should contact us through the HR Hotline Online or at 800-448-4584.