Legislation sets phased wage increase for workers with disabilities starting 2026

House Bill 599, introduced in the Kentucky State Legislature on February 18, 2025, aims to gradually increase the minimum wage for workers with disabilities in the state. The bill outlines a phased approach, mandating that employers pay at least 75% of the state minimum wage starting July 1, 2026, increasing to 80% in 2027, and reaching 100% by July 1, 2028. This legislation seeks to address wage disparities faced by individuals with disabilities, ensuring they receive fair compensation in line with their non-disabled counterparts.

Key provisions of House Bill 599 include a stipulation that, beginning in 2028, employers authorized to pay workers with disabilities below the federal minimum wage cannot pay less than the prevailing wage set by local or state standards. Additionally, the bill includes a mechanism to automatically adjust the state minimum wage in response to any increases in the federal minimum wage.

The introduction of this bill has sparked notable debates among lawmakers and advocacy groups. Proponents argue that it is a crucial step toward economic equity and inclusion for individuals with disabilities, who often face significant barriers in the workforce. Critics, however, express concerns about the potential financial burden on small businesses and the feasibility of implementing these wage increases.

The implications of House Bill 599 extend beyond economic considerations; it also reflects a broader social commitment to improving the lives of individuals with disabilities in Kentucky. Experts suggest that by ensuring fair wages, the bill could enhance job retention and satisfaction among workers with disabilities, ultimately contributing to a more inclusive workforce.

As the bill progresses through the legislative process, its future remains uncertain. Stakeholders are closely monitoring discussions, anticipating potential amendments that could address concerns raised by opponents while still advancing the bill's core objectives. The outcome of House Bill 599 could set a significant precedent for wage policies affecting workers with disabilities in Kentucky and beyond.