Transformation to Competitive Integrated Employment Act

The Transformation to Competitive Integrated Employment Act would phase out the use of special certificates under section 14(c) of the Fair Labor Standards Act that allow subminimum wages for some workers with disabilities. It would instead help employers transition to competitive integrated employment (CIE), where people with disabilities are paid at or above a fair wage and work in integrated settings. The bill creates grant programs for states and for certificate-holding employers to support this transformation, requires extensive planning and stakeholder involvement, mandates technical assistance and data collection, and sets a five-year sunset for new 14(c) certificates with the authority to issue them ending after that period. A nonprofit entity would provide technical assistance and disseminate best practices, while separate provisions would strengthen reporting, evaluation, and alignment with broader disability and workforce goals. Key features include wage progression milestones toward fair wages, requirements that transformed employment include integrated supports and wraparound services, advisory councils to guide transitions, and increased funding and incentives for states with successful transitions. The act also expands funding mechanisms under the Rehabilitation Act to support expanded employment services and directs several federal agencies to coordinate on technical assistance, dissemination, and employment outcomes for people with disabilities.