Senate hears first hearing on bill to phase out subminimum wages for workers with disabilities

Senator Hicks Hudson presented sponsor testimony on Senate Bill 142 at the Sept. 30 Workforce Development Committee meeting, proposing a five-year phase-out of subminimum wages for individuals with disabilities established under Section 14(c) of the Fair Labor Standards Act.

"A laborer is worthy of his hire," Hicks Hudson said, reading a passage in opening remarks and arguing that Ohio can lead the Midwest in ending subminimum wages for disabled workers. She cited U.S. Department of Labor figures stating roughly 40,000 workers nationwide received subminimum wages in 2024 and that the number had decreased from about 60,000 in 2022.

Hicks Hudson described the bill’s mechanics as a deliberate, multi-year transition rather than an immediate change; she said the legislation mirrors a model used recently in Illinois (the Dignity in Pay Act) and would allow time for employers and licensed programs to adapt. The sponsor urged the committee to schedule proponent testimony so experts and directly affected workers could provide operational details.

Committee members questioned how employers would manage differences in productivity and whether licensed organizations already using 14(c) certificates (for example, sheltered-work programs) would require phased timelines or additional Department of Commerce action. Ranking Member Ingram and others asked proponents to provide data on employment rates following similar reforms in other states and more detail about licensing and transition mechanics.

The committee did not vote; Chair Kaler closed the first hearing and asked proponents to bring more technical testimony in a future session.