HF 262

as introduced - 94th Legislature (2025 - 2026) Posted on 02/10/2025 03:09pm

A bill for an act
relating to human services; prohibiting subminimum wages for persons with
disabilities; appropriating money for MnCHOICES system enhancements;
amending Minnesota Statutes 2024, sections 177.24, by adding a subdivision;
252.44; 256B.4906.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 177.24, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Special certificate prohibition. new text end

new text begin (a) On or after August 1, 2025, employers
must not hire any new employee with a disability at a wage that is less than the highest
applicable minimum wage, regardless of whether the employer holds a special certificate
from the United States Department of Labor under section 14(c) of the federal Fair Labor
Standards Act.
new text end

new text begin (b) On or after August 1, 2027, an employer must not pay an employee with a disability
less than the highest applicable minimum wage, regardless of whether the employer holds
a special certificate from the United States Department of Labor under section 14(c) of the
federal Fair Labor Standards Act.
new text end

Sec. 2.

Minnesota Statutes 2024, section 252.44, is amended to read:

252.44 LEAD AGENCY BOARD RESPONSIBILITIES.

When the need for day services in a county or tribe has been determined under section
252.28, the board of commissioners for that lead agency shall:

(1) authorize the delivery of services according to the support plans and support plan
addendums required as part of the lead agency's provision of case management services
under sections 256B.0913, subdivision 8; 256B.092, subdivision 1b; 256B.49, subdivision
15; and 256S.10 and Minnesota Rules, parts 9525.0004 to 9525.0036;

(2) ensure that transportation is provided or arranged by the vendor in the most efficient
and reasonable way possible; deleted text begin and
deleted text end

(3) monitor and evaluate the cost and effectiveness of the services deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) ensure that on or after August 1, 2025, employers do not hire any new employee at
a wage that is less than the highest applicable minimum wage, regardless of whether the
employer holds a special certificate from the United States Department of Labor under
section 14(c) of the federal Fair Labor Standards Act; and
new text end

new text begin (5) ensure that on or after August 1, 2027, any day service program, including county,
Tribal, or privately funded day services, pay employees with disabilities the highest applicable
minimum wage, regardless of whether the employer holds a special certificate from the
United States Department of Labor under section 14(c) of the federal Fair Labor Standards
Act.
new text end

Sec. 3.

Minnesota Statutes 2024, section 256B.4906, is amended to read:

256B.4906 SUBMINIMUM WAGES IN HOME AND COMMUNITY-BASED
SERVICES REPORTING new text begin ; PROHIBITION new text end .

new text begin Subdivision 1. new text end

new text begin Subminimum wage outcome reporting. new text end

(a) A provider of home and
community-based services for people with developmental disabilities under section 256B.092
or home and community-based services for people with disabilities under section 256B.49
that holds a credential listed in clause (1) or (2) as of August 1, 2023, must submit to the
commissioner of human services data on individuals who are currently being paid
subminimum wages or were being paid subminimum wages by the provider organization
as of August 1, 2023:

(1) a certificate through the United States Department of Labor under United States
Code, title 29, section 214(c), of the Fair Labor Standards Act authorizing the payment of
subminimum wages to workers with disabilities; or

(2) a permit by the Minnesota Department of Labor and Industry under section 177.28.

(b) The report required under paragraph (a) must include the following data about each
individual being paid subminimum wages:

(1) name;

(2) date of birth;

(3) identified race and ethnicity;

(4) disability type;

(5) key employment status measures as determined by the commissioner; and

(6) key community-life engagement measures as determined by the commissioner.

(c) The information in paragraph (b) must be submitted in a format determined by the
commissioner.

(d) A provider must submit the data required under this section annually on a date
specified by the commissioner. The commissioner must give a provider at least 30 calendar
days to submit the data following notice of the due date. If a provider fails to submit the
requested data by the date specified by the commissioner, the commissioner may delay
medical assistance reimbursement until the requested data is submitted.

(e) Individually identifiable data submitted to the commissioner under this section are
considered private data on individuals as defined by section 13.02, subdivision 12.

(f) The commissioner must analyze data annually for tracking employment and
community-life engagement outcomes.

new text begin (g) This subdivision expires August 1, 2027.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition of subminimum wages. new text end

new text begin Effective August 1, 2027, providers of
home and community-based services are prohibited from paying a person with a disability
wages below the state minimum wage pursuant to section 177.24 or below the prevailing
local minimum wage on the basis of the person's disability. A special certificate authorizing
the payment of less than the minimum wage to a person with a disability issued pursuant
to a law of this state or to a federal law is without effect as of August 1, 2027.
new text end

Sec. 4. new text begin APPROPRIATION; MNCHOICES SYSTEM ENHANCEMENTS.
new text end

new text begin $38,000 in fiscal year 2026 and $75,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of human services to carry out MnCHOICES system
enhancements to embed employment-related materials into the MnCHOICES application.
The base for this purpose is $75,000 in fiscal year 2028.
new text end