More comments on non-competitive employment for people with intellectual and developmental disabilities

Testimony from 18 Missouri, an organization representing 6,000 families in support of people benefitting from non-competitive employment.

See more on Youtube.

Today, 12/15/19 is the last day to submit comments to the U.S. Commission on Civil Rights Regarding Section14(c) of the Fair Labor Standards Act. 14(c) allows employers to pay people with disabilities less than minimum wage based on their individual abilities and needs. Protections in the law make acceptance of non-competitive employment voluntary. Other employment opportunities are available for people with disabilities who want competitive employment for at least minimum wage through Vocational Rehabilitation agencies and supported employment services. 

Submit comments by email here, subminimumwages@usccr.gov . 

Although comments are due today, anyone can comment any time to the US Commission on Civil Rights.

The following are excerpts from a letter dated 11/14/19 from Jill Escher, President of the National Council on Severe Autism, to the US Commission on Civil rights regarding “non-competitive employment options with severe cognitive, functional and behavioral disabilities”. Read the full text of the letter here.

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National Council on Severe Autism
PO Box 26853
San Jose, CA 95159
info@ncsautism.org
ncsautism.org
November 14, 2019 

United States Commission on Civil Rights
Via email: subminimumwages@usccr.gov 

...We fully understand and appreciate that some individuals with disabilities have been paid less than their productivity warrants—clearly, justice requires that those individuals receive competitive wages. However, a substantial portion of the disability sector—namely, those with substantial cognitive and behavioral impairments who lack the ability to engage in work at a competitive level—require noncompetitive, highly supported options…. 

All Americans should have access to work, but elimination of 14(c) de facto excludes our severe ID population from the workforce based on the fantasy that all intellectually disabled adults could achieve competitive employment. A few more key points: 

• Given the staggering increase in the population with severe autism, we see a clear imperative to create vastly more, not fewer, options for day programming and supported forms of employment. …We need to maximize their person-centered options, including work that pays special wages based on less-than-competitive productivity.
• Subminimum wage work is but one benefit accruing to the significantly disabled clients. …A standard job supervisor is unlikely to treat seizures, change diapers, or handle getting punched or scratched, to put it mildly. The extremely valuable, though non-monetary, therapeutic dimensions should be considered before over-simplistically labeling subminimum wages as discriminatory. 
• 14(c) programs serving the significantly intellectually disabled provide a protected form of employment unavailable in the free market...the employee’s needs comes first, and profitability is not the prime endpoint. The nonprofit work is typically tailored to the particular skillset of the worker, a customization unavailable in the free labor market where individuals are expected to conform to pre-established performance standards...Disability advocates often accuse 14(c) wage programs of exploiting or abusing their disabled workers, but for severely challenged adults, the opposite is almost always true— the programs often protect clients from exploitation and abuse by offering protected employment. 
• No person with a disability is forced into 14(c) work, and wages are set carefully. … 
• Most workers with disabilities, for example physical disabilities, are already in the competitive market...As Harris Capps, the father of Matthew, who loves his job in an Ohio work center, states, "If a higher functioning individual is able to get a job providing a mandated minimum wage, surely, they already have the minimum wage law in effect to protect them." 
• When non-competitive workshops close, participants often end up idle at home, lonely and unemployed, or if they work at all, with decreased job hours and decreased total wages. Where is the data suggesting better outcomes for the severely disabled who are denied the opportunity to work? We have seen none. Slashing their jobs, leaving them to languish at home, detached from any community of peers, with no viable alternative discriminates against our most vulnerable. The ostensible “liberation” of requiring competitive employment obviously strands our most vulnerable citizens. At a minimum, 14(c) must remain intact for our subset who lack capacity for competitive employment. 

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Fact Sheet on Subminimum Wages for People with Disabilities

The DD News Blog testimony to the USCCR

Testimony on special wage certificates for people with disabilities

December 13, 2019

To: The U.S. Commission on Civil Rights
From: Jill R. Barker, Ann Arbor, Michigan 

Re: Do 14(c) wage certificates violate the civil rights of people with disabilities?

Answer: NO, not with the protections properly enforced in current law and the availability of choices to meet individual needs.

I am the parent of two adult sons with profound intellectual and developmental disabilities (IDD). Despite the claims by many disability advocacy groups, that all people with disabilities can work in integrated, competitive work settings, my sons are not capable of work of any kind, although there are many services and protections that are afforded to them that improve and maintain the quality of their lives.

I also belong to local and national disability organizations that acknowledge a broad spectrum of ability and need and avoid proclaiming to know with absolute certainty what all people with disabilities can and can’t do. Only by empowering individual voices of people with disabilities (including legal guardians) and their families to advocate for their own needs and preferences will we ever get to a system of care and services that is in synch with the needs of this diverse population.

Special wages below minimum wage are permitted under Section 14(c) of the Fair Labor Standards Act for people with disabilities. The claim that these are inherently discriminatory is belied by the protections in law that make acceptance of these services voluntary and a choice among alternatives for employment.

According to a Fact Sheet from the U.S. Department of Labor, Wage and Hour Division, on “The Employment of Workers with Disabilities at Subminimum Wages”,

“The fact that a worker may have a disability is not in and of itself sufficient to warrant the payment of a subminimum wage.”

Special wage certificates allow people with more severe cognitive and other disabilities to work at their own pace in skill development centers (sheltered workshops, usually in community settings) and receive pay adjusted to their abilities and how fast they work. Special wages are below the federal minimum wage and are a way to subsidize employers who provide jobs to people who would otherwise not be able to compete for employment.

Wages must be commensurate with the individual’s abilities and productivity: “All subminimum wages must be reviewed and adjusted, if appropriate, at periodic intervals. At a minimum, the productivity of hourly paid workers must be reevaluated every six months and a new prevailing wage survey must be conducted at least every twelve months;” … “any worker with a disability paid at subminimum wages, or his/her parent or guardian, may petition the Administrator of the Wage and Hour Division for a review of their special wage rates by a Department of Labor Administrative Law Judge.”

People with intellectual and developmental disabilities who wish to work in integrated competitive work settings for at least minimum wage should be eligible for ongoing supported employment services, usually funded by Medicaid Waivers.

With Medicaid and social security benefits and a variety of options available to people with IDD, it is hard to imagine that individuals who choose to work in non-competitive work settings are depriving themselves of their civil rights.

Depriving people with severe disabilities of an accommodation that allows them to engage in appropriate work is in itself discriminatory.

In an article from The Hill, “Eliminating subminimum wage waivers will harm hundreds of thousands of people with disabilities”, 8/10/2018, David Ordon writes,

“In 2014, 75 percent of individuals with I/DD receiving day or employment services through a state I/DD system were attending a sheltered or facility-based environment.

“This means that efforts to remove 14 (c) subminimum wage certificates are essentially targeting one group, and one group alone: people with disabilities who choose to attend sheltered workshops”.

Protecting the choices of people with severe disabilities also protects choice in general for all people with disabilities. Eliminating choices that some advocates don’t approve of may feel good to them in the moment, but using civil rights as a weapon to deprive people of needed services is unfortunately an excuse that is not lost on government agencies and legislators always looking for ways to cut costs for vulnerable populations.

Jill R. Barker
12/13/2018

A brief history of work centers for people with disabilities and subminimum wage

[The term "Sheltered Workshop" is used pejoratively by many advocacy organizations promoting the elimination of these programs. Other terms, such as facility-based or center-based work programs for people with severe disabilities are equally valid and often preferred by those who need and want these programs to continue, even when they pay less than minimum wage as allowed by law. Any of these terms mean the same thing as far as I am concerned.] 

A 1998 Technical Assistance Circular from the U.S. Department of Education on State Vocational Rehabilitation Agencies and Community Rehabilitation Programs gives some historical perspective on the origins of employment programs for people with severe disabilities:

"In 1938, President Franklin D. Roosevelt signed into law the Wagner O'Day Act to provide employment through the sale of products to the Federal government for persons who were blind. Congress amended this Act in 1971 as the Javits-Wagner-O'Day Act (JWOD) to also include Federal contracts for products and services and expanded the Act to provide employment opportunities for other persons with severe disabilities..."

The 1971 amendments to the act include expanded employment opportunities. State Vocational Rehabilitation agencies were encouraged to coordinate with Community Rehabilitation Programs (CRPs) that employ people at or above minimum wage, but also to provide “extended employment”. Extended employment is defined as "work in a non-integrated or sheltered setting for a public or private non profit agency that provides compensation in accordance with the Fair Labor Standards Act, and any needed support services to an individual with a disability to enable the individual to continue to train or otherwise prepare for competitive employment, unless the individual through informed choice chooses to remain in extended employment”[emphasis added].

One of the criticisms of the 1938 law is that it is old - sometimes the word "archaic" is used. Tell that to people receiving social security old age benefits based on a 1935 law, and I doubt that many of them will return their checks because the law is old.

A criticism of the 1971 amendments (JWOD) is that the people who passed the law were somehow unenlightened and did not believe, as many advocates now claim, that everyone with a severe disability can work in integrated, competitive employment. Thousands of people in center-based work programs and their families disagree. They need and value the types of employment and other services offered by these so-called archaic work programs. Many disabled individuals have tried integrated, competitive employment, and either could not find or keep a job or could not function in competition with other employees in integrated work settings.

Vocational Rehabilitation programs that train and provide services for people with disabilities for competitive employment are time-limited and the goals of these programs are out of reach for many people with intellectual and developmental disabilities (IDD). WIOA, the Workforce Innovation and Opportunity Act signed by President Obama in 2014, loosened up some of the requirements for vocational rehabilitation services, but it prioritizes integrated competitive employment above work in non-integrated work settings that may not be suitable for many people with IDD.

Supported Employment Services, are defined in the DD Act (The Developmental Disabilities Assistance and Bill of Rights Act of 2000) for people with IDD as follows:

The term 'supported employment services' means services that enable individuals with developmental disabilities to perform competitive work in integrated work settings, in the case of individuals with developmental disabilities

• for whom competitive employment has not traditionally occurred; or
• for whom competitive employment has been interrupted or intermittent as a result of significant disabilities; and
• who, because of the nature and severity of their disabilities, need intensive supported employment services or extended services in order to perform such work.

Supported Employment is often funded through Medicaid Waivers for people with IDD in integrated settings for at least minimum wage. These services can continue as long as needed, unlike vocational rehabilitation services that are time-limited. These services, however, can be very costly and not suitable for some people with more severe disabilities.

Work programs that hire people with more severe disabilities can obtain special wage certificates under the Fair Labor Standards Act to pay employees less than minimum wage, but commensurate with the individual's abilities and productivity. Wage certificates are threatened with elimination as are the programs that employ people with severe disabilities. The claim that these are inherently discriminatory is belied by the protections in law that make acceptance of these services voluntary and a choice among alternatives for employment.

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See also, The DD News Blog "Fact Sheet on Sub Minimum Wages for People with Disabilities"

Comments needed by 12/15/19.

"VOR's Position on Sheltered Workshops"

The DD News Blog on supported employment

Fact Sheet on Subminimum Wages for People with Disabilities

The US Department of Labor issued a Fact Sheet on “The Employment of Workers with Disabilities at Subminimum Wages” in 2008. It still applies, even as discussion of changes to the law is currently a hot topic.

Special wage certificates allow people with more severe cognitive and other disabilities to work at their own pace in skill development centers (sheltered workshops, usually in community settings) and receive pay adjusted to their abilities and how fast they work. Special wages are below the federal minimum wage and are a way to subsidize employers who provide jobs to people who would otherwise not be able to compete for employment.

The facts show, that working in a sheltered workshop or other non-competitive employment situation is not an arbitrary decision nor is it compulsory: “The fact that a worker may have a disability is not in and of itself sufficient to warrant the payment of a subminimum wage.”

Wages must be commensurate with the individuals abilities and productivity: “All subminimum wages must be reviewed and adjusted, if appropriate, at periodic intervals. At a minimum, the productivity of hourly paid workers must be reevaluated every six months and a new prevailing wage survey must be conducted at least every twelve months;” “…any worker with a disability paid at subminimum wages, or his/her parent or guardian, may petition the Administrator of the Wage and Hour Division for a review of their special wage rates by a Department of Labor Administrative Law Judge.” 

In addition, Many facility-based job sites for people with more severe disabilities offer other services in addition to employment. Most employees with intellectual and developmental disabilities (IDD) receive benefits such as Supplemental Security Income, Medicaid covered health insurance, and other supports for people with low incomes and special needs. .

People with developmental disabilities who wish to work in integrated competitive work settings for at least minimum wage should be eligible for ongoing supported employment services, usually funded by Medicaid Waivers.

With these benefits and choices available to people with IDD, it is hard to imagine that individuals who choose to work in non-competitive work settings are depriving themselves of their civil rights.

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U.S. Department of Labor
Wage and Hour Division
(Revised July 2008)

Fact Sheet #39: The Employment of Workers with Disabilities at Subminimum Wages

This fact sheet provides general information concerning the application of section 14(c) of the Fair Labor Standards Act (FLSA).

Characteristics

Section 14(c) of the FLSA authorizes employers, after receiving a certificate from the Wage and Hour Division, to pay subminimum wages - wages less than the Federal minimum wage - to workers who have disabilities for the work being performed. The certificate also allows the payment of wages that are less than the prevailing wage to workers who have disabilities for the work being performed on contracts subject to the McNamara-O'Hara Service Contract Act (SCA) and the Walsh-Healey Public Contracts Act (PCA).

A worker who has disabilities for the job being performed is one whose earning or productive capacity is impaired by a physical or mental disability, including those relating to age or injury. Disabilities which may affect productive capacity include blindness, mental illness, developmental disabilities, cerebral palsy, alcoholism and drug addiction. The following, taken by themselves, are not considered to be disabilities for purposes of paying subminimum wages: education disabilities, chronic unemployment, receipt of welfare benefits, nonattendance at school, juvenile delinquency, and correctional parole or probation.

Section 14(c) does not apply unless the disability actually impairs the worker's earning or productive capacity for the work being performed. The fact that a worker may have a disability is not in and of itself sufficient to warrant the payment of a subminimum wage.

Coverage

Any person who works on or otherwise handles goods that are moving in interstate commerce is individually subject to the minimum wage and overtime requirements of the FLSA. In addition, employees of enterprises operated for a business purpose that have an annual dollar volume of sales or business done of at least $500,000 are also subject to the FLSA's requirements. Furthermore, employees of public agencies; hospitals; institutions primarily engaged, in the Act's own words, “in the care of the sick, the aged, or the mentally ill or defective who reside on the premises;” schools for children who have disabilities; or preschools, elementary or secondary schools, or institutions of higher education are covered on an enterprise basis regardless of the annual dollar volume of the employer.

Requirements

Certification

Employers must obtain an authorizing certificate from the Wage and Hour Division prior to paying subminimum wages to employees who have disabilities for the work being performed. Employers shall submit a properly completed application (Form WH-226-MIS, Application for Authority to Employ Workers with Disabilities at Subminimum Wages.) and the required supporting documentation to: 

United States FS 39
Department of Labor, Wage and Hour Division, 230 South Dearborn Street, Room 514, Chicago, Illinois, 60604-1757; (312) 596-7195. Certificates covering employees of work centers and patient workers normally remain in effect for two years. Certificates covering workers with disabilities placed in competitive employment situations or School Work Experience Programs (SWEPs) are issued annually.

Commensurate Wage Rates

Subminimum wages must be commensurate wage rates - based on the worker's individual productivity, no matter how limited, in proportion to the wage and productivity of experienced workers who do not have disabilities performing essentially the same type, quality, and quantity of work in the geographic area from which the labor force of the community is drawn. The key elements in determining commensurate rates are:

•Determining the standard for workers who do not have disabilities, the objective gauge against which the productivity of the worker with a disability is measured.

•Determining the prevailing wage, the wage paid to experienced workers who do not have disabilities for the same or similar work and who are performing such work in the area. Most SCA contracts include a wage determination specifying the prevailing wage rates to be paid for work on the SCA contract.

•Evaluating the quantity and quality of the productivity of the worker with the disability.

All subminimum wages must be reviewed and adjusted, if appropriate, at periodic intervals. At a minimum, the productivity of hourly paid workers must be reevaluated every six months and a new prevailing wage survey must be conducted at least every twelve months.

Overtime, Child Labor and Fringe Benefits

Generally, workers subject to the FLSA, SCA, and/or PCA must be paid overtime at least 1 1/2 times their regular rate of pay for all hours worked over 40 in a workweek. Minors younger than 18 years of age must be employed in accordance with the youth employment provisions of the FLSA and PCA. Neither the FLSA nor PCA have provisions requiring the payment of fringe benefits. Workers paid subminimum wages, however, must receive the full fringe benefits listed on the wage determination when performing work subject to the SCA.

Enforcement

The Wage and Hour Division is responsible for the administration and enforcement of the FLSA. In addition, any worker with a disability paid at subminimum wages, or his/her parent or guardian, may petition the Administrator of the Wage and Hour Division for a review of their special wage rates by a Department of Labor Administrative Law Judge.

Worker Notification

Each worker with a disability and, where appropriate, the parent or guardian of such worker, shall be informed orally and in writing by the employer of the terms of the certificate under which such worker is employed. In addition, employers must display the Wage and Hour Division poster, Notice to Workers with Disabilities Paid at Special Minimum Wages (WH Publication 1284).

Where to Obtain Additional Information

For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. U.S. Department of Labor Frances Perkins Building 200 Constitution Avenue, NW Washington, DC 20210

1-866-4-USWAGE

TTY: 1-866-487-9243Contact Us

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See also, Because We Care - "What is all this about subminimum wage?"

The DD News Blog - more on special wage certificates

Parents' comments on special wages for people with IDD

December 6, 2019

These comments are addressed to the US Commission on Civil rights regarding special wage certificates for people with intellectual and developmental disabilities.

See The DD News Blog for more information on the issues involved and how to submit comments. Comments are due by DECEMBER 15, 2019.


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Dear Commissioners: 

Our daughter Sarah lives at Misericordia in Chicago, IL. Misericordia is a non-profit entity serving over 600 children and adults with intellectual disabilities who require around-the-clock care. Sarah is 37 years old, has cerebral palsy, uses a wheelchair, and is intellectually about three to four years old. She needs assistance to perform all activities of daily living, including dressing, bathing, toileting, eating, and medicating.

We strongly support the special wages permitted by Section 14(c) of the Fair Labor Standards Act. It is essential that 14(c) remain available to those served by Misericordia.

Misericordia operates a number of work programs on its campus. The purpose of these programs is to provide job training to the men and women Misericordia serves and to provide them with a life of dignity. All of these programs operate at a loss. These programs are operated solely to give Misericordia residents the pride and self-esteem that come from holding a job. Without Section 14(c), the cost of these work programs would triple. Misericordia would be forced to employ fewer of its residents and employ them for fewer hours. The loss of job opportunities for our loved ones would not be replaced by off-campus jobs. Many Misericordia residents, including our Sarah, cannot obtain or maintain an off-campus job at the minimum wage. Sarah's intellectual and behavioral challenges preclude community employment. Her only opportunity at employment is an on-campus job where she can receive the constant care and support she requires.

We hope that through Misericordia's excellent training programs one-day Sarah can hold a job in Misericordia's laundry or recycling program. But, if Section 14(c) is eliminated, that will become impossible. The end of 14(c) would mean the end of our dream that Sarah will one day have a job on Misericordia's campus. The special wages permitted by Section 14(c) do not violate Sarah’s civil rights. In fact, Section 14(c) protects Sarah’s right to choose the work environment that best meets her needs. Depriving Sarah of that choice and relegating her to spend her days in non-work activities would violate her civil rights.

Thanks for your thoughtful consideration of this important issue.

Liz and Scott Mendel

Scott Mendel is the Chairman of the Board of Directors for Together For Choice

Are opponents of special wages for people with IDD protecting their civil rights or limiting job opportunities?

Saint Lucy

December 6, 2019

This is from Together For Choice (TFC), a national advocacy organization for people with intellectual and developmental disabilities. According to the TFC Website, 

"Together for Choice was organized by providers and families across the country seeking to enhance the right of individuals with developmental disabilities to choose where to live and how to spend their days. We stand for the proposition that individuals with developmental disabilities should have the same rights as everyone else to decide where to live, work, recreate and receive services."

TFC is encouraging its members and other interested parties to send comments to the U.S. Commission on Civil Rights regarding special wage certificates that protect jobs for people who are not able to work for competitive wages in fully integrated work settings. 

Submit your comments to the US Commission on Civil Rights BY DECEMBER 15.

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Action needed to submit comments to the U.S. Commission on Civil Rights Regarding 14(c)

Dear Together for Choice Member:

Section 14(c) of the Fair Labor Standards Act continues to be under attack. Once again it is critical that we act to protect the work opportunities of our loved ones. The United States Commission on Civil Rights held a briefing in Washington, D.C. and is accepting comments through December 15 on the following topic: “Subminimum Wages: Impacts on the Civil Rights of People with Disabilities.” The way the topic is phrased makes it clear where the Commission is going. It uses the derogatory term “subminimum wage” and turns special wages that accommodate an individual’s abilities and helps them gain employment into a violation of their civil rights.

As we have previously discussed, special wages for those with disabilities is permitted under Section 14(c) of the Fair Labor Standards Act and has been in existence for over 80 years. This provision permits employers to pay individuals with disabilities a specialized wage based on their ability to perform the job. At no point does the statute refer to these wages as “subminimum.” The purpose of Section 14(c) is to help individuals with disabilities to obtain employment. No one is forced to work at 14(c) wages. Therefore, the statute preserves choices for our loved ones; it preserves their civil right to choose the employment setting that best suits them.

Last spring when we asked you to submit comments on 14(c) to the Department of Labor, your response was overwhelming. There were far more comments supporting 14(c) than opposing it. It was important that the Department of Labor hear from the families that would be affected by a repeal of this important law. We must do the same now with our comments to the US Commission on Civil Rights. The briefing scheduled for last Friday, November 15, had a full list of previously selected speakers. Virtually all of the scheduled speakers oppose Section 14(c) and want to see it eliminated along with work programs designed to meet the needs of those with developmental disabilities. The Commission needs to understand that the repeal of Section 14(c) will mean the loss of employment for men and women with significant intellectual or developmental disabilities, like our loved ones. It is important that the Commission hear from us, the families and providers that serve those with intellectual disabilities. The Commission must recognize that there is no “one size fits all” solution when it comes to employment of individuals with disabilities.

The real civil rights issue here is choice. The right of our loved ones to choose the employment option that best meets their needs must be respected. To repeal 14(c) and deny our family members that choice would violate their civil rights.

Therefore, please submit your comment to the US Commission on Civil Rights BY DECEMBER 15.

https://www.usccr.gov/press/2019/11-13-Subminimum-Wages-PR.pdf

... Please make sure you put your comment in your own words. Individual comments have a much greater impact than those that look like copies of others’ comments.

Comments can be emailed to: subminimumwages@usccr.gov

(If you'd like for us to keep a record of your email, you can copy info@togetherforchoice)

Comments can also be mailed to the Commission at the following address:

OCRE/Public Comments
U.S. Commission on Civil Rights
1331 Pennsylvania Ave. NW
Suite 1150
Washington, DC 20425