Labor & Employment (People with Disabilities)

HF 2456 prohibits Iowa employers from paying disabled workers less than the state minimum wage after July 1, 2027, except for nonprofit sheltered workshops (which retain this exception until July 1, 2028). It establishes state policy that competitive and integrated employment should be the first choice for disabled workers seeking jobs, directing all state agencies to prioritize this approach in their employment programs. The bill does not require employers to hire disabled workers but mandates that state-supported employment services focus on helping disabled individuals work in regular workplaces at fair wages. This affects disabled workers, employers, and state agencies providing job support services.

This bill modifies Iowa's unemployment benefits rules to allow specific disability-related activities to count as required "work search" efforts. It directly affects Iowans receiving unemployment benefits who have intellectual disabilities, autism spectrum disorder, traumatic brain injury, or are blind. The key provision permits these individuals to fulfill weekly work search requirements by participating in approved vocational rehabilitation programs (for intellectual disabilities/autism/brain injury) or employment assistance programs for the blind, both offered by state departments. This change replaces standard job-search activities with disability-specific support programs designed to help these individuals gain or maintain employment. The bill does not alter benefit eligibility or amounts, only the method for meeting work search requirements.

HF 738 establishes a state grant program to fund repairs for mobility devices and workplace accessibility improvements for people with disabilities and their employers. The program is funded by redirecting fines from parking violations involving disabled placards (specifically under Code sections 321L.2A, 321L.3, 321L.4, and 321L.7) into a dedicated state fund. The Department of Health and Human Services will administer the program, creating rules for eligibility, applications, and funding criteria. Moneys in the fund are specifically designated for these grants and cannot be used for other purposes.

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.