Current law authorizes employers to pay less than minimum wage for employees with physical or mental disabilities under a subminimum wage certificate program.

California’s Governor has signed Senate Bill 639 (SB 639) which requires the development of a plan to phase out the use of this program. Under SB 639, the program will be phased out by January 1, 2025, and no new special licenses will be issued under the program after January 1, 2022.

Existing license holders will be required to meet benchmarks provided for in the phaseout plan in order to be relicensed.

Jackson Lewis will continue tracking state legislation that is relevant to employers.