HF262

This Minnesota legislative bill aims to eliminate the payment of subminimum wages to people with disabilities. From August 1, 2025, employers will not be allowed to hire new employees with disabilities at wages below the highest applicable minimum wage, even if they have a federal permit that allows this practice. By August 1, 2027, all employers must pay current employees with disabilities at least the minimum wage, again irrespective of any federal permissions.

The bill also updates the responsibilities of local government boards concerning day services for people with disabilities, ensuring these services pay at least the minimum wage from August 1, 2027. Additionally, the bill requires service providers to report detailed information about employees with disabilities earning subminimum wages to help track employment and community engagement outcomes. The prohibition on paying subminimum wages extends to all home and community-based services from August 1, 2027.

Furthermore, the bill allocates funding for enhancements to the MnCHOICES system, which assesses the needs of people seeking long-term services and supports. This includes $38,000 in 2026 and $75,000 in 2027 to integrate employment-related materials into the MnCHOICES application system.