An Act To Phase Out the Payment of Subminimum Wages to Workers with Disabilities
Maine Legislature, Session 127, LD 1240
Committee: Labor, Commerce, Research and Economic Development
Sponsors: KATZ, HERBIG, CAMPBELL, GILBERT
Amends: 26 MRSA §666, 26 MRSA §673

Legislative Document 
No. 1240 
S.P. 445 
In Senate, April 7, 2015 
An Act To Phase Out the Payment of Subminimum Wages to 
Workers with Disabilities 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Representative HERBIG of Belfast and 
Representatives: CAMPBELL of Newfield, GILBERT of Jay. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §666, as amended by PL 2011, c. 483, §1, is repealed. 
Sec. 2.  26 MRSA §673 is enacted to read: 
§673.  Special wage certificates for individuals with disabilities 
1.  Special certificates prohibited.  Beginning November 1, 2015, the director may 
not issue special certificates authorizing an employer to pay an individual with a physical 
or mental disability a wage less than the minimum wage based on the individual's ability 
to perform the duties required for that employment in comparison to the ability of a 
person who does not have a physical or mental disability to perform the same duties. 
2.  Minimum wage.  Except as provided by subsection 3, an employer may not 
employ any employee at a rate less than the rates required by section 664. 
3.  Former special certificates.  A special certificate described in subsection 1, 
issued pursuant to former section 666 or pursuant to federal law, remains in effect until 
the earlier of its expiration date and November 1, 2018 and may not be renewed. 
4.  Vocational rehabilitation services.  The Department of Labor and the 
Department of Health and Human Services shall offer all individuals with disabilities 
being paid less than Maine's minimum wage vocational rehabilitation services at least 
annually, including career planning assistance and information and referrals regarding 
resources offering competitive employment services and supports. 
5.  Exemption.  After the expiration of a special certificate described in subsection 1, 
the individual who was employed at less than minimum wage may apply to the director 
for an individual work permit authorizing the payment of wages at less than the minimum 
wage by a certain employer.  The permit must state the lowest wage to be paid and must 
remain in effect with regard to that employer in 2-year increments.  This permit will be 
granted only after a formal review by the Department of Labor that verifies the following: 
A.  Individually designed and customized employment strategies have failed to yield 
integrated, community-based, customized employment or self-employment at or 
above minimum wage; 
B.  The employer has made all possible efforts to provide reasonable 
accommodations to assist the individual to perform the essential functions of the job, 
including, but not limited to, providing training, providing supervision and support, 
making physical changes to the workplace, tailoring the job to the individual's 
abilities or reassigning the individual to another position; 
C.  The individual agrees to the proposed wage rate; and 
D.  For an individual with an intellectual disability or autism, the individual is 
engaging in a personal planning process pursuant to Title 34-B, section 5470-B. 
An individual who has received an adverse application decision by the director may 
appeal to the commissioner from that determination by filing a written notice with the 
commissioner stating the specific grounds of that individual's objection within 10 days' 
notice of that determination.  The commissioner shall hold a hearing on the appeal, 
pursuant to Title 5, chapter 375, subchapter 4, within 20 days from the receipt of the 
notice of appeal.  The commissioner has the authority to affirm, reverse or amend the 
determination of the director.  The commissioner shall render a decision within 10 days 
after the conclusion of the hearing. 
During the time that the formal review is being conducted, during the time an adverse 
application decision has been made and appeal has not been exhausted or during the time 
that a grievance filed pursuant to Title 34-B, section 5604 is pending at any stage, the 
special certificate or individual work permit remains in effect, as long as the employer 
has current federal approval for the wage pursuant to 29 United States Code, Section 214. 
SUMMARY 
Currently the State Government and Federal Government may issue special 
certificates permitting an employer to pay an individual with a physical or mental 
disability a wage less than the State's minimum wage based on the individual's ability to 
perform the duties required for that employment in comparison to the ability of a person 
who does not have a physical or mental disability to perform the same duties.  This bill 
prohibits the issuance of such certificates.  Existing special certificates authorizing 
payment of less than the minimum wage remain in effect until the earlier of their 
expiration date and November 1, 2018.  After the expiration of a previously issued 
certificate, an individual who was covered by such certificate may apply to the Director 
of the Bureau of Labor Standards within the Department of Labor for a special work 
permit authorizing the payment of wages at less than the minimum wage rate by a certain 
employer.