This bill establishes new provisions regarding the employment of persons with disabilities in Iowa. It declares that, starting July 1, 2026, employers are prohibited from paying employees with disabilities less than the minimum wage as outlined in Code chapter 91D, in accordance with federal law (29 U.S.C. 214(c)). The bill also mandates that the Department of Inspections, Appeals, and Licensing conduct outreach to inform employers about this requirement. However, this prohibition does not apply to nonprofit organizations operating sheltered workshops, with this exception set to be repealed on July 1, 2027.

Additionally, the bill articulates a state policy that competitive and integrated employment should be the preferred option for persons with disabilities of working age seeking employment. This policy is applicable to all programs and services aimed at supporting these individuals in obtaining jobs. The bill further defines "competitive employment" and "integrated setting," emphasizing that individuals should be compensated at or above the minimum wage and interact with nondisabled individuals in community settings. Importantly, the bill clarifies that it does not require employers to prioritize hiring persons with disabilities.

Statutes affected:
Introduced: 216C.1, 216C.1A