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House
File
538
-
Introduced
HOUSE
FILE
538
BY
TUREK
A
BILL
FOR
An
Act
relating
to
employment
of
persons
with
disabilities.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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538
Section
1.
NEW
SECTION
.
91D.2
Minimum
wage
——
persons
with
1
disabilities.
2
1.
On
or
after
July
1,
2026,
an
employer
shall
not,
pursuant
3
to
29
U.S.C.
§214(c),
pay
an
employee
less
than
the
minimum
4
wage
provided
in
this
chapter.
5
2.
The
department
of
inspections,
appeals,
and
licensing
6
shall
engage
in
outreach
to
make
employers
of
persons
with
7
disabilities
in
this
state
aware
of
the
requirements
of
this
8
section.
9
3.
Subsection
1
does
not
apply
to
a
nonprofit
organization
10
operating
a
sheltered
workshop
as
otherwise
provided
by
law.
11
For
purposes
of
this
subsection,
“nonprofit
organization”
means
12
a
nonprofit
entity
that
is
exempt
from
federal
income
taxation
13
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
Code.
14
This
subsection
is
repealed
July
1,
2027.
15
Sec.
2.
Section
216C.1,
Code
2025,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
3.
To
ensure
full
participation
in
18
the
social
and
economic
life
of
this
state
by
persons
with
19
disabilities,
it
is
declared
to
be
the
policy
of
the
state
20
of
Iowa
that
competitive
and
integrated
employment
shall
be
21
considered
the
first
and
preferred
option
when
serving
persons
22
with
disabilities
who
are
of
working
age
to
obtain
employment.
23
This
policy
applies
to
programs
and
services
that
provide
24
services
and
support
to
help
obtain
employment
for
persons
with
25
disabilities.
All
state
agencies
shall
follow
this
policy
and
26
ensure
that
it
is
effectively
implemented
in
their
programs
27
and
services.
This
subsection
shall
not
be
construed
to
28
require
any
employer
to
give
preference
to
hiring
persons
with
29
disabilities.
30
Sec.
3.
Section
216C.1A,
Code
2025,
is
amended
by
adding
the
31
following
new
subsections:
32
NEW
SUBSECTION
.
01.
“Competitive
employment”
means
work
in
33
the
competitive
labor
market
that
is
performed
on
a
full-time
34
or
part-time
basis
in
an
integrated
setting
and
for
which
an
35
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individual
is
compensated
at
or
above
the
minimum
wage
provided
1
in
chapter
91D,
but
not
less
than
the
customary
wage
and
level
2
of
benefits
paid
by
the
employer
for
the
same
or
similar
work
3
performed
by
individuals
who
are
not
disabled.
4
NEW
SUBSECTION
.
1A.
“Integrated
setting”
means,
with
5
respect
to
an
employment
outcome,
a
setting
typically
found
6
in
the
community
in
which
applicants
or
eligible
individuals
7
interact
with
nondisabled
individuals,
other
than
nondisabled
8
individuals
who
are
providing
services
to
those
applicants
9
or
eligible
individuals,
to
the
same
extent
that
nondisabled
10
individuals
in
comparable
positions
interact
with
other
11
persons.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
provides
that
in
order
to
ensure
full
16
participation
in
the
social
and
economic
life
of
Iowa
by
17
persons
with
disabilities,
it
is
declared
to
be
the
policy
of
18
the
state
that
competitive
and
integrated
employment
shall
be
19
considered
the
first
and
preferred
option
when
serving
persons
20
with
disabilities
who
are
of
working
age
to
obtain
employment.
21
The
bill
specifies
this
policy
applies
to
programs
and
services
22
that
provide
services
and
support
to
help
obtain
employment
for
23
persons
with
disabilities.
The
bill
directs
all
state
agencies
24
to
follow
this
policy
and
ensure
that
it
is
effectively
25
implemented
in
their
programs
and
services.
The
bill
shall
26
not
be
construed
to
require
any
employer
to
give
preference
to
27
hiring
persons
with
disabilities.
28
The
bill
prohibits
an
employer
from
paying
an
employee
less
29
than
the
minimum
wage
provided
in
Code
chapter
91D
pursuant
30
to
29
U.S.C.
§214(c)
on
or
after
July
1,
2026.
29
U.S.C.
31
§214(c)
is
a
provision
of
the
federal
Fair
Labor
Standards
Act
32
that
authorizes
persons
with
disabilities
to
be
employed
for
33
less
than
the
federal
minimum
wage
in
certain
circumstances.
34
The
bill
directs
the
department
of
inspections,
appeals,
and
35
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538
licensing
to
engage
in
outreach
to
make
employers
of
persons
1
with
disabilities
in
Iowa
aware
of
the
prohibition.
2
The
prohibition
does
not
apply
to
a
nonprofit
organization
3
operating
a
sheltered
workshop
as
otherwise
provided
by
law.
4
This
exception
to
the
prohibition
is
repealed
July
1,
2027.
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