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State officials, advocates outline next steps after phasing out subminimum wage; committee presses for formal Employment First office implementation
Summary
Panelists described the end of subminimum wage in California, ongoing pilots and services to support transitions to competitive integrated employment, and the Legislature demanded a timeline and quarterly reporting on the Employment First office and transitions.
Administration officials, vocational rehabilitation staff and disability advocates told the Assembly subcommittee that phasing out subminimum wage was a major milestone but only the first step toward increasing competitive integrated employment (CIE) for Californians with intellectual and developmental disabilities.
Deborah Cooper, assistant secretary at the California Health and Human Services Agency, said the administration supports SB 639 (Durazo, 2021) and noted that as of Jan. 1 there are no individuals in California being paid subminimum wage under 14(c) certificates. Cooper said the Budget Act of 2023 established an Office of Employment First in CalHHS effective July 1, 2024, and that the Administration has aligned existing staff in DDS and DOR to advance employment goals while keeping the office's functions within existing departmental capacity.
Ernie Cruz, deputy director at the Department of Developmental Services, said DDS tracked the transition of more than 2,000 individuals; not all achieved CIE outcomes. DDS highlighted new services such as coordinated career pathways, paid internships and a higher-rate job development and job coaching service added through rate reform. Victor Duran, Chief Deputy Director at the Department of Rehabilitation, cited DOR's long-running career counseling and information service and two pilots in Orange County and San Diego testing models for people who otherwise might have entered subminimum-wage settings.
Advocates urged a distinct Employment First office with clear authority to coordinate across departments, measure outcomes and change incentive structures. Aaron Carruthers of the California State Council on Developmental Disabilities said California's employment rate for adults with developmental disabilities has hovered around 15 percent for a decade and argued that better cross-department coordination and payment reform are needed to improve outcomes.
Committee Chair Dr. Jackson criticized the Administration's budget decision to reduce the operational set-aside for the Employment First office and called the reduction "disrespectful" to prior legislative negotiations. The committee demanded an implementation timeline and process for statutory mandates and asked for quarterly reporting starting July 1, 2025, on the status of individuals transitioning from subminimum wage and on regional center technical assistance for coordinated career pathways. Chair Jackson directed the Administration to provide a detailed timeline and requested LAO support drafting trailer-bill language.
