What does Preamble of S 2438 do?

This bill aims to assist employers utilizing special certificates under section 14(c) of the Fair Labor Standards Act of 1938. The bill seeks to facilitate the transition of these employers' business and program models to support competitive integrated employment for people with disabilities. A key objective is to phase out the use of these special certificates.

What does SHORT TITLE. of S 2438 do?

This bill is formally titled the Transformation to Competitive Integrated Employment Act.

What does Purposes. of S 2438 do?

This section establishes the purposes of programs.

What does Certificate holder grant program. of S 2438 do?

This section references the Fair Labor Standards Act of 1938.

What does PURPOSES. of S 2438 do?

This Act aims to assist employers with special certificates under the Fair Labor Standards Act to transition their operations to support people with disabilities in finding and retaining competitive integrated employment. The Act emphasizes the involvement of people with disabilities, their families, state and local governments, and other stakeholders in these transformations. It seeks to ensure that individuals employed in programs utilizing these special certificates transition to competitive integrated employment and, if needed, to integrated community services. The Act intends to identify and share models and processes for shifting from special certificate-based programs to competitive integrated employment and community participation. The Act provides support to states and local governments in revising and implementing their Olmstead and local plans to improve employment outcomes for people with disabilities through state workforce development systems.

What does PROGRAM AUTHORIZED. of S 2438 do?

This section authorizes grants to States and eligible entities to assist employers transitioning from special certificate-based employment models to those employing people with disabilities. Grants will be awarded competitively based on applications. Employers receiving grants must provide competitive integrated employment, compensating employees at a rate no less than the higher of the federal or state minimum wage. The compensation rate must also be no less than what the employer pays similarly situated employees without disabilities. The program assists people with disabilities previously employed by the employer in finding new competitive integrated employment. Grant recipients must provide integrated community participation and wraparound services for people with disabilities. All services must comply with requirements for home and community-based services under the specified Department of Health and Human Services rule.

What does STATE GRANT PROGRAM. of S 2438 do?

This section establishes a State Grant Program to support the transformation of employment practices for people with disabilities. To be eligible for a grant, states must submit an application to the Secretary, including detailed information about the status of employers using special certificates. Applications must describe activities related to competitive integrated employment, including plans for supporting people with disabilities and engaging stakeholders. The grant aims to coordinate Federal, State, and local programs and evaluate the social and economic impact of the transformation. States receiving grants must ensure that individuals employed under special certificates are given opportunities for competitive integrated employment. A Competitive Integrated Employment Fund is established to receive and utilize returned grant funds or other amounts to increase employment opportunities for people with disabilities.

What does CERTIFICATE HOLDER GRANT PROGRAM. of S 2438 do?

This section establishes a Certificate Holder Grant Program. To be eligible for a grant, an entity must submit an application to the Secretary. Applications must include information on the entity's use of special certificates, including employee demographics and wage history. Applicants must describe activities to be funded by the grant and their goals, including plans for transitioning to competitive integrated employment. The Secretary aims to distribute grant funds equitably among geographic areas and entities of different sizes. Grants are awarded for a period of three years, with two grant cycles. An eligible entity can only receive one grant under this section. Grant amounts range from $200,000 to $750,000 for the three-year period. An 'eligible entity' employs people with disabilities under special certificates and partners with at least two entities supporting competitive integrated employment.

What does TRANSITION TO FAIR WAGES FOR PEOPLE WITH DISABILITIES. of S 2438 do?

This section amends section 14(c)(1) of the Fair Labor Standards Act of 1938. The amendment establishes a schedule for increasing the minimum wage rate for individuals with disabilities. The wage rate will increase incrementally over five years, starting at 60% of the standard wage rate and reaching 100%. The effective date of the amendment is 90 days after the enactment of this Act. The changes are tied to the enactment of the 'Transformation to Competitive Integrated Employment Act'.

What does PROHIBITION ON NEW SPECIAL CERTIFICATES; SUNSET. of S 2438 do?

This section amends Section 14(c) of the Fair Labor Standards Act of 1938. It prohibits the Secretary from issuing new special certificates to employers who did not receive a special certificate before the enactment of the Transformation to Competitive Integrated Employment Act. The authority to issue special certificates under paragraph (1) will expire five years after the enactment of the Transformation to Competitive Integrated Employment Act. Special certificates issued under paragraph (1) will have no legal effect after the sunset date.

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Transformation to Competitive Integrated Employment Act — S. 2438

Last updated: 7/24/2025 · Introduced: 7/24/2025

Author: Chris Van Hollen (D-MD)

TL;DR (AI)

This bill aims to transition employers using special certificates under the Fair Labor Standards Act to provide competitive integrated employment for people with disabilities.
It establishes grant programs for states and certificate holders to support this transition, requiring employers to pay employees with disabilities at least the federal or state minimum wage and comparable to similarly situated employees without disabilities.
The bill amends the Fair Labor Standards Act to incrementally increase the minimum wage rate for individuals with disabilities over five years, ultimately reaching 100% of the standard wage rate.
It prohibits the issuance of new special certificates and sunsets existing ones five years after enactment, effectively phasing out this employment model.
The bill mandates an impact evaluation of the Act's effects on wages and employment for people with disabilities and requires annual reports from the Secretary of Labor on employers utilizing special certificates.

119th Congressin committeeHR. 4771(In Committee)Official page

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