Dignity in Pay Act: Pritzker signs monumental bill phasing out sub-minimum wage

SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker signed a historic bill into law Tuesday to eliminate the state's subminimum wage and improve work opportunities for people with disabilities. The Dignity in Pay Act will phase out subminimum wage authorizations by December 31, 2029.

A federal law from 1938 has allowed people with developmental and intellectual disabilities to receive subminimum wages from organizations with 14-C certificates. This law will make Illinois the 19th state to eliminate the practice and improve life for workers with disabilities.

Gov. JB Pritzker signed the Dignity in Pay Act into law on January 21, 2025.

"We are sending an unequivocal message across Illinois, and frankly across the nation, that nobody should underestimate or undervalue the labor of persons with disabilities," Pritzker said.

The legislation creates a transition program for 14-c providers to receive funding, training and support to increase work options and phase out subminimum wages. It also requires the state to file a Medicaid waiver with the federal government to increase small group supported employment rates to improve disability worker programs.

"This law helps make financial and vocational wellness possible for all," said advocate Erin Compton. "We must work together to build new futures."

The law states that over 11,000 community group home residents should receive a personal allowance of at least $100 per month. It also calls for the personal needs allowance to increase annually at the same rate as Social Security cost-of-living adjustments.

"Rep. Theresa Mah and I introduced this bill, I think it was in 2018," said Sen. Cristina Castro (D-Elgin). "It was viewed as an obstacle by many. Like that's never going to happen. It's never going to happen. Hey, it did happen."

Yet, some Republican lawmakers believe business owners will be forced to make cuts if they have to pay workers higher wages. Sen. Chapin Rose (R-Mahomet) worries many people in his district could lose their jobs once the law takes effect.

"Indiana's minimum wage is $7.25 an hour. From Paris, Illinois to Terre Haute is about 20 minutes," Rose said. "At $15 an hour, you just put all of those folks that this bill is designed to help out of business. They'll be out of work and pink slipped."