Proponent Testimony on HB225 — Ohio Olmstead Task Force, House Commerce and Labor Committee

Summary

Written proponent testimony on HB225: Phasing Out Subminimum Wage for Ohioans with Disabilities, from the Ohio Olmstead Task Force to the House Commerce and Labor Committee, dated May 19th, 2025. The testimony describes the Task Force as a coalition of people with disabilities, family members, and advocates. It states that HB225 does not eliminate sheltered workshop settings, allows for a five-year transition period and provides tax incentives to businesses transitioning away from 14(c) practices. It states that as of 2024, 16 states have passed legislation to phase out the use of 14(c). It closes with the names Sally Fish and Maria Sutter, co-chairs of the OOTF Legislative Committee.

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                                               HB225

                                  The Ohio Olmstead Task Force

                                       Proponent Testimony

                             House Commerce and Labor Committee

                                          May 19th, 2025

Chair Johnson, Vice Chair Lear, Ranking Member McNally, and all other members of the House
Commerce and Labor Committee:

On behalf of the Ohio Olmstead Task Force, thank you for the opportunity to provide written
proponent testimony on HB225: Phasing Out Subminimum Wage for Ohioans with Disabilities.

The Ohio Olmstead Task Force is a coalition of people with disabilities, family members, and
advocates working to ensure Ohio complies with the landmark Olmstead v. L.C. U.S. Supreme
Court decision, which affirms the right of people with disabilities to receive services in the most
integrated setting appropriate to their needs.

Section 14 (c) programs and the practice of subminimum wage were first introduced under the
Fair Labor Standards Act (FLSA), originally intended to create employment opportunities for
people with disabilities at a time when they were widely viewed as unemployable. As many
stated in the previous proponent testimony hearing on HB225, that was nearly 90 years ago.
People with disabilities are some of the only people where there is a legal practice that allows
employers to pay them less than the prevailing minimum wage, often it is as low as $2 an hour.
In 2025, we must recognize how it has become unethical to pay anyone below the minimum
wage set by the federal government or the state in which a person resides.

Today you may hear opponent testimony, particularly from family members of individuals with
intellectual, developmental, or cognitive disabilities arguing that HB225 would decrease the
independence of their loved ones with disabilities. This is not true. HB225 does not eliminate
sheltered workshop settings, it simply requires that the employers pay people with disabilities
at least the minimum wage or transition to a recreational model. They may also argue that
these employers would lose their business if they had to pay their workers with disabilities
more—this is also not true. Not only does HB225 allow for a five-year transition period, but it
provides tax incentives to businesses who are transitioning away from 14(c) practices. There are
several Ohio providers that used to offer subminimum wage who have voluntarily transitioned
to paying minimum wage and are still in business.
14(c) Practices are NOT rooted in Equity, but Discrimination.
By its very definition, subminimum wage is exploitative. No one, when asked if they would
willingly accept being paid less than their peers solely because of a disability or a perceived
limitation, would ever say, 'Yes, that’s what I want.' It's a practice rooted in discrimination, not
equity. In 2024, the National Association of Councils on Developmental Disabilities (NACDD)
released their position statement on the urgent need to end 14(c) and sheltered workshops to
transition to integrated, inclusive employment.1 They stated: “Sheltered workshops, which often
provide menial tasks for far below minimum wage, deny people with disabilities the opportunity
to fully participate in society.2” These environments isolate individuals from their communities,
limit their economic independence, and reinforce harmful stereotypes about the capabilities of
people with disabilities. Rather than fostering growth or development, 14(c) programs trap
individuals into a cycle of low expectations and dependency. True inclusion means ensuring all
people, regardless of disability status, have access to meaningful, competitive employment with
fair wages and opportunities for advancement. Ending 14(c) is not just a policy shift, it’s a moral
imperative to uphold the dignity and rights of all workers.

Eliminating 14 (c) practices is economically responsible
The elimination of subminimum wage and sheltered workshops would have several positive
impacts for employers and on the economy in Ohio. To begin, introducing individuals with
disabilities into the competitive workforce provides a new pool of employees who, statistically
have equal or better attendance, productivity, and retention rates than those without
disabilities.3 When individuals come to work, work effectively, and stay at their jobs, employers
spend less money on their workforce. Additionally, when individuals with disabilities are
working in an integrated environment, side-by-side with non-disabled peers, they naturally gain
on-the-job training and social integration techniques that lead to high job satisfaction and skill
development. This is a win for both employee and employer. Finally, employers’ fears that they
will incurred additional cost to employ individuals with disabilities are unfounded. In fact,
employers may qualify for tax incentives or grants that offset costs related to providing
accommodations for workers with disabilities.

Providing individuals with disabilities a competitive wage also has economic implications that
extend to the local and state economy. Employees with disabilities that receive at least a
minimum wage are more likely to qualify for employer benefits, such as health insurance, and
retirement, which may decrease their reliance on government subsidized insurance.


1 National Association of Councils on Developmental Disabilities. "The Urgent Need to End 14(c) and Sheltered Workshops for People with

Developmental Disabilities and Transition to Integrated, Inclusive Employment." NACDD, 30 Oct. 2024, https://nacdd.org/14cstatement/.NACDD
2 National Association of Councils on Developmental Disabilities. "The Urgent Need to End 14(c) and Sheltered Workshops for People with

Developmental Disabilities and Transition to Integrated, Inclusive Employment." NACDD, 30 Oct. 2024, https://nacdd.org/14cstatement/.NACDD
Additionally, when individuals with disabilities earn a more livable wage, they have more money
to contribute to the economy by spending within their communities.

If there is a doubt that this model can work, I urge lawmakers and all opponents of this bill to
look at Walgreens as a model employer of individuals with disabilities who are receiving at or
above minimum wages.4 Other states throughout the country also offer precedent. As of 2024,
16 states have pass legislation to phase out the use of 14(c).5

Conclusion
The time has come for Ohio to align its employment practices with the values of dignity and
equity. Continuing to permit subminimum wage for people with disabilities sends the harmful
message that their labor, and by extension; their lives, are worth less. HB225 offers a
thoughtful, phased approach to ending this discriminatory practice by supporting the individual,
the families, and the businesses through the transition process.

On behalf of the Ohio Olmstead Task Force, we urge this committee to vote in favor of HB225
and take a critical step toward ensuring that all Ohioans, regardless of disability, are valued
equally in our workforce. Thank you for your leadership and commitment to advancing the
rights of people with disabilities in our state.

Sincerely,

Sally Fish
Disability Rights Advocate
Co-Chair of OOTF Legislative Committee
The Ability Center of Greater Toledo

Maria Sutter
Disability Rights Advocate
Co-Chair of OOTF Legislative Committee
The Ohio Olmstead Taskforce


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