Illinois could phase out subminimum wage for disabled workers. Could it cost some their jobs?
CHICAGO (CBS) -- A proposed change in Illinois law would eliminate the subminimum wage for workers with disabilities, but some fear it could leave the state's most vulnerable out of work altogether.
In the Avenues to Independence warehouse in Wheeling is an assembly line like you'd find in almost any other packaging facility, but this one is built on a different business model – one that employee Matt Nelson says is a success.
"At least 400 or 500 boxes. Look, we did all that right there," Nelson said.
The organization employs people with disabilities.
"I used to come here three days a week, but I only come here five now," employee Kathy McGannon said.
Some staff work at different levels of speed and efficiency – something leaders said makes a standard hourly minimum wage impractical.
"Most businesses need to be profitable, and they're not going to hire workers that are only working at 35% of the norm," said Avenues to Independence president & CEO Stephen Kray.
Avenues to Independence said 80% to 90% of their workforce is subminimum wage, but the program is about more than the spending cash, it's about skill-building and opportunity.
"Many of our individuals have tried to get jobs in the community before, and it didn't work out due to the different pressures that are involved with competitive employment," Kray said.
The program comes with a big output. They said, during their busy season, they could be putting together 200,000 to 250,000 packages in a month.
Avenues to Independence leaders said they're worried that Illinois House Bill 793 – also known as the Dignity in Pay Act – would end the subminimum wage for workers with disabilities, and would effectively end their program.
But supporters of the legislation said it doesn't mean an automatic loss of jobs that currently pay the subminimum wage for disabled workers. If passed, the law wouldn't go into effect for five years, and during that time there could be supplemental funding streams to keep the programs going.
"There are over a dozen other states that have passed different phase-out laws that we're already learning from," said Josh Evans, president & CEO of the Illinois Association of Rehabilitation Facilities. "In 2029 forward, regardless of productivity level, if you're performing work, you're gonna at least get minimum wage. And so we kind of see that as an equity and equality issue for persons with disabilities that that has been a long time coming."
Employees at Avenues to Independence said they fear moves toward equity and equality could have the opposite effect.
The Illinois House passed the Dignity in Pay Act in May. The Illinois Senate could vote on it this week, during the final days of the legislature's fall veto session.