ANCOR is sharing this item by Politico Morning Shift as an update on this previous article to clarify that the vote on the Raise the Wage Act is expected in July. We also wish to remind our members that beyond its applicability to them as employers, this bill is relevant to the intellectual/developmental disability (I/DD) community because it contains provisions regarding 14(c) certificates. For your convenience, we have copied that portion of the bill language below the Politico Pulse item. ANCOR is not taking a position on the Raise the Wage Act, but we have shared with national partners the challenges of supporting increased minimum wage increases without required Medicaid reimbursement adjustments.
As written by Politico Morning Shift:
“HOUSE DEMOCRATS OPTIMISTIC ON $15: Top House Democrats are confident they have the 218 votes needed to raise the hourly minimum wage to $15 by 2024 (up from the current $7.25), and they expect to bring the bill to the House floor shortly after the July 4 recess, POLITICO’s Sarah Ferris reports. “Several one-time holdouts — including Rep. Terri Sewell (D-Ala.), who has championed a competing approach that would create a ‘regional’ minimum wage — now say they will vote for the bill on the floor, though they are still looking for additional assistance for small businesses that may be hurt by the minimum wage.”
Democrats believe they can use the pressure of a roll call vote to secure the last few votes they’ll need, but Republicans are expected to force liberal and more conservative members of the caucus to go the record with procedural votes on carve-outs for small businesses and other amendments. Leaders of the Blue Dog Coalition have fortified themselves against that effort by inserting a compromise amendment that would require the Government Accountability Office to conduct a study on the policy’s economic effects after roughly two years.”
14c language contained in the Raise the Wage Act:
SEC. 6. PROMOTING ECONOMIC SELF-SUFFICIENCY FOR INDIVIDUALS WITH DISABILITIES.
(1) TRANSITION TO FAIR WAGES FOR INDIVIDUALS WITH DISABILITIES.—Subparagraph (A) of section 14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to read as follows:
“(A) at a rate that equals, or exceeds, for each year, the greater of—
“(i) (I) $4.25 an hour, beginning 1 year after the date the wage rate specified in section 6(a)(1)(A) takes effect;
“(II) $6.40 an hour, beginning 2 years after such date;
“(III) $8.55 an hour, beginning 3 years after such date;
“(IV) $10.70 an hour, beginning 4 years after such date;
“(V) $12.85 an hour, beginning 5 years after such date; and
“(VI) the wage rate in effect under section 6(a)(1), on the date that is 6 years after the date the wage specified in section 6(a)(1)(A) takes effect; or
“(ii) if applicable, the wage rate in effect on the day before the date of enactment of the Raise the Wage Act for the employment, under a special certificate issued under this paragraph, of the individual for whom the wage rate is being determined under this subparagraph,”.