A bill for an act relating to employment of persons with disabilities.

HF 538 requires Iowa employers to pay workers with disabilities at least the state minimum wage starting July 1, 2026, ending a federal exception that previously allowed lower wages for some disabled employees. It declares competitive and integrated employment (working alongside non-disabled peers in typical workplaces at or above minimum wage) as the preferred option for state programs helping people with disabilities find jobs. State agencies must implement this policy in their employment services, and the state will conduct outreach to help employers understand the new wage rule. Nonprofits operating sheltered workshops are temporarily exempt until July 1, 2027, after which the exemption ends.