Proponent Testimony on HB 225 — House Commerce and Labor Committee (May 14th, 2025)

Summary

Proponent testimony from Dr. Jules Patalita, Disability Rights Advocate for The Ability Center in Greater Toledo, to the House Commerce and Labor Committee on House Bill 225, dated May 14, 2025. The testimony states support for the bill and urges the committee to join the 21 states already acting to phase out subminimum wage. It states that studies on Maryland and Vermont showed 11.9% and 24.5% increases in the employment rates of those specifically with cognitive disabilities, and that HB 225 has a five-year transition period. It also cites a study by the United States Government Accountability Office and lists footnoted sources.

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Proponent Testimony on HB 225

May 14th, 2025

Thank you Chairman Johnson, Vice Chair Lear, Ranking Member McNally, and members of
the House Commerce and Labor Committee for the opportunity to testify on House Bill
225. My name is Dr. Jules Patalita and I am a Disability Rights Advocate for The Ability
Center in Greater Toledo. We are a Center for Independent Living that has worked for the
last century towards our mission, to make our community the most disability friendly in the
nation by increasing independence for people with disabilities, discovering true passions,
and changing the community’s perception of disability. In fulfillment of that mission, to
increase the independence of those with disabilities, and to fight for the dignity of fellow
Ohioans, I come today to speak in favor of HB 225, as the subminimum wage is an
antiquated piece of law that has no place in Ohio code in 2025, and I push for this
committee to join the 21 states already acting to phase out the practice.


I would like to begin by addressing a misconception that many have surrounding HB 225,
that it will lead to those with disabilities losing jobs in these sheltered environments.
Simply put, phasing out subminimum wage is a work incentive, and it will lead to more
Ohioans with disabilities joining the workforce. While this may seem counterintuitive, data
from states that have already phased out 14(c) show us this is true. Studies on Maryland
and Vermont, two of the earliest states to phase out subminimum wage, had significant
increase in employment rates for adults with disabilities, with respective 11.9% and 24.5%
increases in the employment rates of those specifically with cognitive disabilities.i These
numbers, coming from 2022 employment data by the American Community Survey, also
show other states that reported between a 5-12% increase in employment rates for those
with cognitive disabilities: New Hampshire, Alaksa, Maine, Washington, Delaware, and
Colorado.

Empirically, we have proof that many states have found phasing out 14(c) to be a work
incentive for their communities, but we have just as much personal testimony and lived
experience showing the benefits of the phase out for the disability community. A study
published on April 29th of this year by the United States Government Accountability Office
highlighted interviews with former 14(c) workers and their caregivers. While some
individuals discussed the challenges of transitioning to competitive employment, the
report noted “more individuals discussed positive experiences than challenging.”ii Key
findings from these interviews were workers noting positive reactions to more fulfilling job
tasks, increased freedom of earning a higher wage, and “pathways for taking on additional
responsibilities at work, such as receiving a promotion.” If Ohio is an Employment First
state as Governor Kasich declared in 2012, why would we not follow through with bills
such as HB 225 that perfectly demonstrate this philosophy?iii

While there may have been cause for concern about the hiring of workers with disabilities
in 1938, that was 87 years ago, and our society has changed to give those with disabilities
equal opportunities in employment that make subminimum wage unnecessary and
harmful. The Americans with Disabilities Act protects individuals with disabilities from
discrimination during the interview, hiring, and employment stage, while also requiring
reasonable accommodation to allow workers to perform their job functions to the same
effectiveness as nondisabled coworkers.iv Ohio is also equipped with many departments
and agencies that assist individuals with finding employment and job coaching. The Ohio
Association of County Boards currently manages these types of services for thousands of
Ohioans and, this February, they signed a resolution to support the phasing out of
subminimum wage. If the statewide collection of professionals assisting many people with
developmental disabilities believes that they are able to support these individuals as they
move towards competitive employment, I trust that this is the correct move for the future
of Ohio’s disability community.

There are two concerns on HB 225 you are most likely to hear. The first is that 14(c)
businesses will be unable to maintain profits if they are forced to increase wages. We have
evidence that this will not be the case, however, as the previous 21 states ending
subminimum wage did not close the doors of every 14(c) certificate holder. These
employers adjusted and were able to maintain services while keeping staff. There are
businesses in Ohio that once paid subminimum wage, only to voluntarily raise wages to
match the minimum, and they are functioning much the same as they were before. To
address these issues, HB 225 has many elements built in that work to protect businesses,
mainly the five-year transition period itself. Many states that previously passed similar bills
had shorter transition periods or none at all. Georgia, who just signed a bill to phase out
subminimum wage weeks ago, only built in a two-year transition.v At the end of last year,
there was a federal rule proposal that would have seen a three-year phase out period of
subminimum wage.vi

Ohio’s five-year transition is longer than these other proposals, giving us more time to find
solutions that best fit the environment here in Ohio. The bill also has the built-in
protections for employers, including a tax credit to assist with funding, participation from
OOD and DODD to work alongside an Employment First Taskforce, and transition plans for
each individual business to ensure that employers are able to keep doors open and staff
happy. National reports have stated the best way to ensure a successful phase out of 14(c)
is to have a strong support system ranging from employment specialists to benefits
coaching to Medicaid.vii By having these supports available in Ohio and included in HB 225,
this bill is laying the foundation for our state to have a successful transition that best
serves all of the interested parties while enhancing the independence and dignity of our
workers.

The second viewpoint against phasing out 14(c) is one of fear for loved ones, family
members afraid that the routine and employment of their relatives with disabilities will be
disrupted. It is difficult to argue against a parent who wants to see their child continue to
be in a place where they have been satisfied for years, and we have nothing but empathy
for those advocating for what they think is best for their loved ones. The facts show,
however, that this will not be the effect of HB 225. As addressed, states that have already
eliminated subminimum wage see higher employment rates for those with disabilities,
including those with intellectual and developmental disabilities. As a Center for
Independent Living, our chief concern is the independence and quality of life for the
disabled community of Ohio, and that is why we support this bill. The goal is not to close
businesses, but to give individuals more choice to how they spend their days while raising
wages to match all other Ohioans. HB 225 has protections in place, including the
Employment First Taskforce and the participation of OOD and DODD, that take necessary
action over the five-year transition to make sure that no one is left behind, especially
workers with disabilities. For those few individuals who are not able to find employment
afterwards, existing services such as Day Habilitation Services will ensure that the social
needs of these people are met while keeping valued routine in place to create as little
disruption as possible.

You will hear opponents of HB 225 defend subminimum wage as a necessary part of Ohio’s
disability services, but 21 states have already demonstrated that this is not the reality
today. This bill includes a lengthy five-year transition period where the Employment First
Taskforce and state agencies will work to ensure that our state offers competitive wages to
all workers while making sure no one is left behind. These steps are greater than many
taken by other state and federal proposals, but are vital to protecting employers and
employees alike. With these various protections included in the bill, our belief is that we
will see increased choices for people with disabilities as to how they spend their working
hours, but with the increased independence that comes with an equal wage to their
nondisabled peers. I hope the committee is able to see the benefits in paying all Ohioans
an equal wage, strengthening our workforce and further committing to Ohio being an
Employment First state.

Thank you for the opportunity to provide testimony on HB 25, please let me know if you
have any additional questions or concerns.



Sincerely,



Jules Patalita, PhD

The Ability Center of Greater Toledo, Disability Rights Advocate

jpatalita@abilitycenter.org



i
   Association of People Supporting Employment First. (2024). (rep.). Trends and Current Status of 14(c) .
Retrieved from https://apse.org/wp-content/uploads/2024/08/APSE-14c-Update-REV-Jul24.pdf
ii
    (2025). (rep.). Subminimum Wage Program: Employment Outcomes and Views of Former Workers in Two
States. Retrieved from https://files.gao.gov/reports/GAO-25-
106471/index.html?_gl=1*idxm33*_ga*MjE1NTk4NzYxLjE3NDY4MTQ2MDY.*_ga_V393SNS3SR*czE3NDcwN
TQ5MzckbzIkZzEkdDE3NDcwNTYwNzMkajAkbDAkaDA.#_Toc196381458.
iii
     Ohio Employment First Taskforce. Employment first in Ohio. https://ohioemploymentfirst.org/employment-
first-in-ohio
iv
    Americans with Disabilities Act of 1990, as Amended. ADA.gov. https://www.ada.gov/law-and-regs/ada/
v
    Cole, A. (2025, May 1). Disabled Georgians Must Now be Paid at Least Minimum Wage. WJCL.
https://www.wjcl.com/article/georgia-ends-subminimum-wage-disabled-workers/64648109
vi
    US Department of Labor Announces Proposed Rule to Phase Out Certificates Allowing Payment of Less
than Minimum Wage to Workers with Disabilities. United States Department of Labor. (2024, December 3).
https://www.dol.gov/newsroom/releases/whd/whd20241203
vii
     Heigl, L., Knackstedt, K., & Silva, E. (2024). (rep.). Pennies on the Dollar: The Use of Subminimum Wage for
Disabled Workers across the United States. NewAmerica.org. Retrieved from
https://www.newamerica.org/education-policy/reports/the-use-of-subminimum-wage-for-disabled-
workers-across-the-us/


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