Michael Hansen, Director

Rick Scott, Governor

Segregated and ExploitedSegregated and ExploitedPresented by:

J.B. Black, PhD, John Bartow Black ConsultingNancy Boutot, MS, Agency for Persons with Disabilities

Segregated and ExploitedSegregated and Exploited

A call to Action!

The Failure of the Disability Service System to Provide

Quality Work

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National Disability Rights Network

Nonprofit membership organization for the Protection and Advocacy system and the

Client Assistance Program 3

Curtis Decker

“Today, across the United States of America, hundreds of thousands of people with disabilities are being isolated and financially exploited by their employers.”

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Henry’s Turkey Service

The “Bunkhouse” was unheated, boarded up, and it was where Henry’s Turkey Service housed its workers with disabilities.

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A Brief History of Segregated and Sheltered Work

• 1840 – Perkins Institute for the Blind

• 1934 – National Industrial Recovery Act

• 1938 – Fair labor Standards Act

• 1950’s and 1960’s – Sheltered Workshops increase in popularity

• 1963 – Developmental Disabilities Assistance and Bill of Rights Act (DD Act)

• 1966 – Public Law 89-601

• 1973 Rehabilitation Act

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The Development of National Community Integration Policy

• 1973 – Rehabilitation Act

• 1984 – Congress amended the DD Act

• 1991 – ADA

• 1998 – Rehabilitation Act Amendments

• 1999 – Ticket to Work

• 1999 - Olmstead

• 2000 – Another DD Act amendment7

Sub-minimum Wage

• 1986 – FSLA amended, removed minimum wage floor for people with disabilities

• Today – Department of Labor, Wage and Hour, is given the authority to issue certificates to employers allowing them to pay less than the prevailing wage to individuals with disabilities.

• A study in 1998, 89.3% of people in sheltered workshops earned less than minimum wage.

• In 1999, the average wage of people in sheltered workshops was $2.64 an hour

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Segregation of People with Disabilities is Damaging

• Allows for little contact with those working in the community.

• Predicated on misguided beliefs that it is perfectly acceptable to marginalize people.

• Echo's the idea behind “ugly-laws” (in existence until the early 1970’s).

• Denies people from the opportunity to make meaningful job choices

• Limits people’s capacity to live full, rich lives as active tax paying citizens.

• Assumes a person is incapable of making choices.

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Reinforces a Life of Poverty

• Dependent on family and government programs just to meet basic needs

• Denies people opportunities to further education, go on vacations, explore hobbies

• Once in the system, almost impossible to get out

• Circular system – responsible for creating a permanent dependence on benefits

• Those who receive housing, food, etc. from their employer often are charged fees

• Some sheltered workshops are also representative payees

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Sheltered Workshops Lead Nowhere

• Not a transition point, rather a dead end

• Prepare people for long-term sheltered employment

• Getting ready for work becomes a lifetime activity

• Frequent periods of inactivity

• Training has nothing to do with interests

• Low challenge work

• Non transferable skills

• Best employees kept for contract fulfillment

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Wage and Hour Time Study Issues

• Must be performed the way industry does the job

• Are shelter programs how industry works?

•  Individuals working in shelter programs $175/month – same skill individuals in community $456/month

•  Involves an eventual estimate of productive

•  Are segregated programs reviewed fairly by the Department of Labor?

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Selective Comparison of States and Shelter Programs

• Vermont – No sheltered programs with state funding

• Washington State – high % working, legislation for employment first

• Alabama – minimal sheltered, approximately 4,600 individual in day programs, minimal follow-along funding, no emphasis yet from DD agency (5% receiving SE among day services)

• Georgia – third year of individuals budgets: NOW and COMP Waivers, minimal emphasis, growing transition

• Florida – you tell me

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Policy Recommendations

“Pay Me Minimum Wage or I’m Leaving!”

- John Adler

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End Segregated Employment and Sub-Minimum Wage

• Restrict all federal money going into SE/SMW

• Discontinue offering sub-minimum wage certificates

• Forbid federal statutes/regulations that move youth into SE/SMW

• Modify federal and state contracts to not go to those who use SE/SMW

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Promote & Facilitate Integrated and Comparable Wage Alternatives:Congress

• Strengthen existing, and create new incentives through federal tax codes

• Improve/Enhance workforce programs to require greater participation by individuals with disabilities

• IDEA – mandate that transition plans include work preparation

• Create transition coordinator positions under IDEA or Rehab Act reauthorization

• Mandate SE services be funded under the Rehab Act for a min. of 36 months

• Require Medicaid to fund services that will allow those in segregated settings to move into integrated/comparable wage employment

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Promote & Facilitate Integrated and Comparable Wage Alternatives:Department of Education

• Establish new performance indicators by which state VR will be evaluated

# of people who move into competitive/integrated environments

# of IEP meetings VR counselors attend

# of students VR served before individual exited the education system

• Ensure compliance with requirements that VR and special education coordinate and collaborate systems for transition

• Ensure that there are appropriate programs that will prepare students with disabilities for competitive employment

• Provide funding to P&A and CAP programs focused on transition to employment advocacy

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Promote & Facilitate Integrated and Comparable Wage Alternatives: States

• Increase state funding for:

Person-centered planning

Employment supports

Customized and self-employment

• Created policies to encourage hiring within government

• Create tax codes to strengthen and create incentives for hiring

• Use Medicaid for Employment First initiatives

• Fund short-term workforce programs such as internships and apprenticeships

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Increase Labor Protections & Enforcement: Congress

• Increase funding for P&A and CAP to investigate abuses in segregated environments

• Increase funding for Wage and Hour – oversee wage and hour laws

• Increase penalties for violations to Section 14(c)

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Increase Labor Protections & Enforcement: Dept. of Labor

• Require segregated, sub-minimum wage paying employers to report to DOL:

Wages

Progress

Attempts to move to integrated environments

Reasons why progress not made

• Require sub-min. wage certificate evaluations by third party evaluator

• Increase enforcement of federal employment laws:

ODEP, Wage and Hour and Office of federal Contract compliance to collaborate and work together

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Conclusion

• Many people in sheltered settings don’t think there is another way

• Millions of people with disabilities are living successfully in their communities. That needs to happen in the workplace

• It’s time to do things differently

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Thank You!

j.b.black@comcast.netnancy_boutot@apd.state.fl.us