2023 Colorado Revised Statutes › Title 8 - LABOR AND INDUSTRY (§§ 8-1-101 — 8-88-207) › LABOR I - DEPARTMENT OF LABOR AND EMPLOYMENT (§§ 8-1-101 — 8-20.5-401) › WAGES (§§ 8-4-101 — 8-10-103) › Article 6 - MINIMUM WAGES OF WORKERS (§§ 8-6-101 — 8-6-120) › Section 8-6-108.7 - Elimination of subminimum wage for individuals with disabilities - legislative declaration - definitions - repeal

(1)
The general assembly finds and declares that:
(a)
Colorado is an employment first state committed to the goal of achieving competitive integrated employment for individuals with disabilities;
(b)
Ensuring that individuals with disabilities have the opportunity to pursue employment paid in an amount equal to minimum wage or higher is a critical element of achieving this goal;
(c)
Due to systemic barriers, many individuals with disabilities are paid less than the minimum wage applicable to other employees and have limited opportunities to pursue competitive integrated employment;
(d)
The payment of subminimum wages is an economic justice issue for individuals with disabilities, impacting their ability to earn wages equal to their peers without disabilities and devaluing their contributions based on their disabilities;
(e)
Service enhancements and public policy changes are needed to address these systemic barriers and assist individuals in subminimum wage jobs to pursue competitive integrated employment; and
(f)
The elimination of subminimum wage employment, along with the implementation of critical service enhancements and policy changes, is essential to promoting economic justice for, and the enhanced self-sufficiency of, individuals with disabilities while ensuring that individuals currently working in subminimum wage jobs can successfully transition to competitive integrated employment, supported employment, or integrated community activities related to each individual's employment goals.
(2)
(a)
On and after July 1, 2021, if an employer does not hold a special certificate issued on or before June 30, 2021, the employer shall not pay an employee at a wage rate that is below the highest applicable minimum wage.
(b)
On and after July 1, 2021, an employer shall not hire any new employees at a wage rate that is below the highest applicable minimum wage.
(c)
(I)
An employer that holds a special certificate issued on or before June 30, 2021, shall, on or before July 1, 2021, submit data for individuals currently employed in subminimum wage jobs to the department of health care policy and financing in a manner determined by the department of health care policy and financing and shall include:
(A)
The number of individuals currently employed in subminimum wage jobs by the employer;
(B)
The number of hours per week worked by each individual employed in subminimum wage jobs; and
(C)
The wages per hour or piece rate earned by each individual employed in subminimum wage jobs.
(II)
The department of health care policy and financing shall compile and summarize the data submitted pursuant to subsection (2)(c)(I) of this section and make the summary available to the public on or before June 30, 2022.
(III)
On or before June 30, 2022, each employer that holds a special certificate issued on or before June 30, 2021, shall submit a transition plan to the department of health care policy and financing detailing how the employer plans to phase out subminimum wage employment by July 1, 2025, and support individuals currently in subminimum wage jobs to pursue competitive integrated employment, supported employment, or integrated community activities related to each individual's employment goals.
(IV)
The transition plan must include measurable benchmarks, be informed by evidence-based practices and effective employment models, and be updated and resubmitted to the department of health care policy and financing annually until the employer is no longer paying subminimum wages. The transition plan must be aligned with the employer's efforts to comply with federal home- and community-based services regulations, if applicable, and honor the personal choice of individuals currently working in subminimum wage jobs as identified through the person-centered career development planning process described in section
8-84-301(2)
. The transition plan and each annual update must include the data outlined in subsection (2)(c)(I) of this section updated as of the date of submission and the data collected pursuant to this subsection (2)(c)(IV). The department of health care policy and financing shall compile and summarize the data and make the summary available to the public on an annual basis in compliance with federal and state privacy laws including the federal "Health Insurance Portability and Accountability Act of 1996", as amended,
42 U.S.C. sec. 1320d
to
1320d-9
. The transition plan and each annual update must include:
(A)
The number of individuals who, since the most recent prior submission of data, have moved to another provider agency not affiliated with the employer;
(B)
The number of individuals who, since the most recent prior submission of data, have transitioned to competitive integrated employment as defined in section
8-84-301(3)
;
(C)
The number of individuals who, since the most recent prior submission of data, have transitioned to supported employment that does not meet the definition of competitive integrated employment;
(D)
The number of individuals who, since the most recent prior submission of data, have transitioned to integrated community activities related to the individual's employment goals, including individualized career exploration activities;
(E)
The number of individuals who, since the most recent prior submission of data, have transitioned to non-employment-related day services; and
(F)
For individuals included in subsections (2)(c)(IV)(B) and (2)(c)(IV)(C) of this section, the number of hours per week worked by each individual and the wages per hour earned by each individual.
(V)
The department of health care policy and financing shall collaborate with employers and other interested stakeholders to create a process for approving transition plans. The process for approving transition plans must ensure that an employer has until July 1, 2025, to eliminate subminimum wage employment so that individuals currently working in subminimum wage jobs can successfully transition to competitive integrated employment, supported employment, or integrated community activities related to each individual's employment goals.
(VI)
Each annual update of the transition plan must demonstrate progress toward its identified benchmarks. The department of health care policy and financing shall assess each employer's annual progress and provide technical assistance as needed. If an employer fails to demonstrate progress toward the benchmarks identified in its transition plan, the department of health care policy and financing shall notify the department of labor and employment which may issue a compliance order to the employer.
(VII)
In order to ensure that individuals currently working in subminimum wage jobs may successfully transition to competitive integrated employment, supported employment, or integrated community activities related to each individual's employment goals, the individual's case manager must offer the individual the opportunity to have an advocate identified and selected by the individual present during the individual's service plan meetings where employment services are discussed. The case manager must offer and provide assistance, if requested, in identifying an independent advocate who is not involved with providing services or supports to the individual. The case manager shall document the offers of assistance and the individual's responses.
(d)
This subsection (2) is repealed, effective July 1, 2025.
(3)
On and after July 1, 2025, an employer shall not pay an employee with a disability less than the highest applicable minimum wage regardless of whether the employer was issued a special certificate.
(4)
As used in this section:
(a)
"Competitive integrated employment" has the same meaning as set forth in section
8-84-301(3)
.
(b)
"Department" means the department of labor and employment.
(c)
"Special certificate" means a special certificate issued by the United States department of labor pursuant to section 214 (c) of the federal "Fair Labor Standards Act of 1938", as amended,
29 U.S.C. sec. 201
et seq., to an employer that authorizes the employer to pay wages that are less than the minimum wage otherwise required by law to employees whose earning or productive capacity is impaired by age, physical or mental disability, or injury.
Added by 2021 Ch. 380,§ 2, eff. 7/1/2021.
Section 9 of chapter 380 (SB 21-039), Session Laws of Colorado 2021, provides that the act adding this section applies to wages paid on or after July 1, 2021.