To amend sections 4111.06, 4111.14, 5122.28, 5123.022, 5123.023, 5123.87, 5747.98, and 5751.98 and to enact sections 3304.45, 4111.061, 5747.87, and 5751.56 of the Revised Code to phase out the subminimum wage for individuals with physical or mental disabilities, to authorize a tax credit for purchases made from nonprofit corporations that hire such individuals, and to name this act the Ohio Employment First and Greater Opportunities for Persons with Disabilities Act.
HB225 would phase out Ohio’s subminimum wage system for workers whose earning capacity is impaired by a physical or mental disability or injury. The bill stops the issuance or renewal of new subminimum-wage licenses 90 days after the effective date, allows a five-year transition period for employers that already hold valid licenses, and then prohibits paying any employee with a disability below the state minimum wage after that five-year period. It also requires employers using subminimum wages to submit transition plans to the Department of Developmental Disabilities, and directs state agencies to coordinate on data collection, benchmarks, and supports for competitive, integrated employment.
The bill also creates a new tax credit for purchases made from certified nonprofit “qualified vendors” that employ at least 20% workers with disabilities in integrated settings and meet specified health coverage standards. Taxpayers may claim a nonrefundable credit equal to 15% of the purchase price, subject to annual statewide and per-vendor caps, and the credit is available against both the personal income tax and the commercial activity tax. The bill further reinforces Ohio’s Employment First policy by updating related statutes governing developmental disability services, state institutions, and wage enforcement, and it names the act the Ohio Employment First and Greater Opportunities for Persons with Disabilities Act.
HB225 would substantially change Ohio wage law by eliminating the long-standing subminimum wage framework for workers with disabilities, while preserving a limited transition period for existing license holders. It would amend minimum wage enforcement provisions, add new reporting and planning duties for the Department of Developmental Disabilities and the Opportunities for Ohioans with Disabilities agency, and revise developmental disability policy statutes to emphasize competitive, integrated employment. The bill would also create new tax credit provisions in the income tax and commercial activity tax codes for purchases from certified nonprofit employers of people with disabilities, thereby affecting both employers serving this population and taxpayers who buy from them.
Based on the bill’s structure and sponsorship, the measure appears strongly supportive of disability employment rights and consistent with the Employment First approach, with an emphasis on moving workers into competitive integrated employment and away from sheltered or subminimum-wage work. The bill was introduced in the House Commerce and Labor Committee and no votes or committee testimony were provided in the materials, so there is no recorded formal opposition or support in the supplied context. The overall tone of the legislation is reform-oriented and pro-worker, with a focus on expanding opportunity and wage equity for people with disabilities.
The main point of contention is likely the elimination of subminimum wages and the five-year phaseout timeline. Supporters would view the bill as ending a discriminatory wage practice and promoting competitive employment, while opponents or affected providers may be concerned about the feasibility of transitioning workers, the administrative burden of transition plans, and the financial impact on nonprofit and service-provider models that currently rely on subminimum wage certificates. The bill also imposes certification standards tied to health coverage and integrated employment, which could be debated by nonprofits seeking to qualify for the tax credit and by policymakers concerned about the size and targeting of the credit program.