[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2001 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 2001

To phase out special wage certificates under section 14(c) of the Fair 
Labor Standards Act of 1938 that allow individuals with disabilities to 
                   be paid at subminimum wage rates.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2015

  Ms. Ayotte introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To phase out special wage certificates under section 14(c) of the Fair 
Labor Standards Act of 1938 that allow individuals with disabilities to 
                   be paid at subminimum wage rates.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transitioning to Integrated and 
Meaningful Employment Act'' or ``TIME Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Section 14(c) of the Fair Labor Standards Act (referred 
        to in this section as ``Section 14(c)'') (29 U.S.C. 214(c)) 
        allows the Secretary of Labor to grant special wage 
        certificates to certain entities, allowing such entities to pay 
        individuals with disabilities subminimum wages.
            (2) Advancements in vocational rehabilitation, technology, 
        and training provide workers with disabilities with greater 
        opportunities than in the 1930s, when Section 14(c) was passed. 
        When provided the proper rehabilitation services, training, 
        tools, and expectations, employees with disabilities can be as 
        productive as nondisabled employees.
            (3) The Office of Disability Employment Policy of the 
        Department of Labor continues to support the development and 
        implementation of new innovative tools and strategies, like 
        Customized Employment and the Discovery process, that have 
        resulted in the successful training and employment of 
        individuals with significant disabilities, allowing them to 
        obtain competitive integrated employment.
            (4) In August of 2012, the National Council on Disability 
        (referred to in this section as the ``NCD''), an independent 
        Federal agency tasked with making recommendations to the 
        President about disability-related policy matters, released its 
        report on subminimum wage and supported employment. The NCD 
        unanimously recommended that the Department of Labor 
        immediately stop issuing new special wage certificates. In 
        addition, NCD recommended that the ``Section 14(c) program be 
        phased out.''.
            (5) Programs, such as the Vermont Conversion Institute, 
        exist to help entities holding Section 14(c) certificates 
        transition their business models in order to ensure integrated, 
        meaningful employment that provides compensation of at least 
        the Federal minimum wage for all of their employees. Vermont 
        does not have any Section 14(c) certificate holders in the 
        State. Twenty-two States were represented at the seventh 
        Conversion Institute forum in 2013, where entities holding 
        Section 14(c) certificates learned strategies from others that 
        had already transitioned their businesses, in order to 
        seamlessly make the change themselves.
            (6) As of May 2015, no Section 14(c) certificates are held 
        by any entity in the State of New Hampshire. By using 
        innovative strategies, the 3 entities that held Section 14(c) 
        certificates in 2013 transitioned their business models to 
        ensure that all employees are meeting their full vocational 
        potential, proving that transition is possible and that Section 
        14(c) certificates are unnecessary.

SEC. 3. TRANSITION TO FAIR WAGES.

    (a) Discontinuance.--During the period beginning on the date of 
enactment of this Act and ending on the date that is 3 years after such 
date of enactment, the Secretary of Labor shall not issue any special 
wage certificate under section 14(c) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 214(c)) to any entity unless the issuance is a renewal 
of a special wage certificate previously issued to the entity.
    (b) Transition.--Any special wage certificate issued or renewed 
under section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214(c)) shall be void as of the date that is 3 years after the date of 
enactment of this Act.
    (c) Repeal.--Effective on the date that is 3 years after the date 
of enactment of this Act, section 14(c) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 214(c)) is repealed.
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