Segregated & exploited the failure of the disability service system to provide quality work A Call to Action! 2011

Why the Report? First open and public discussion of employment services and sub-minimum wage No consensus Began an important dialog nationally Still unresolved

History of Segregated Work and Sub-minimum Wage Perkins Institute for the Blind created in 1840s Jobs were protected from competition –cutting edge 175 years ago National Industrial Recovery Act (1934) Executive Order during New Deal Fair Labor Standards Act (1938) Standards for basic minimum wage rates and overtime

National Community Integration Policy Rehab Act (1973) DD Act (1984) ADA (1990) ADAA (2009) Olmstead (1999) TWWIIA (1999) Rehab - extend and revise the authorization of grants to States for vocational rehabilitation services, with special emphasis on services to those with the most severe disabilities, expand special Federal responsibilities research and training programs with respect to individuals with disabilities, DD – first passed in 1963 as the Mental Retardation Facilities Construction Act of 1963 reauthorized in 2000 as the Developmental Disabilities Assistance and Bill of Rights Act ADA - to enjoy employment opportunities, to purchase goods and services, and to participate in State and local government programs and services. Modeled after the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, sex, or national origin Olmstead - June 22, 1999, the United States Supreme Court held in Olmstead v. L.C. that unjustified segregation of persons with disabilities constitutes discrimination in violation of title II of the Americans with Disabilities Act.

Contradicting National Policy Laws Conflicting with National Community Integration Policy Javitz-Wagner-O’Day Act (1971) now called Ability One FLSA Section 14(c) State “use” laws

Lack of Enforcement VR Agencies Bungle Compliance and Quality Reviews DOL Did Not Properly Oversee 14(c) program No Implementation of IDEA Transition VR Agencies Fail to Meet Their Transition Obligations

What Is the Vision For People with IDD? People with disabilities live their lives like people without disabilities (with supports as needed) Provide opportunities for true integration, independence, choice, and self-determination in all aspects of life – where people live, spend their days, and community membership Ensure quality services and supports that meet people’s needs and help them achieve goals they have identified through real person-centered planning

Employment is Critical To Meeting This Vision Supporting people with IDD to work in integrated employment in the community is critical to: Helping people with disabilities access the greater community; Facilitating relationships with people without disabilities; Building new skills and self-esteem; Helping bring people with disabilities out of poverty; Reducing utilization of other Medicaid services; and Providing meaningful ways for people to spend their days.

Work Segregation is Damaging Isolation hinders proper development of socialization skills, self-esteem, and work skills It denies ability to Choose the type of work Lack of skills misinterpreted as a non-compliant response to a particular work assignment A study of workers in a sheltered workshop, found individuals with mental illness were more likely to exhibit problem behaviors and demonstrate a poorer attendance record

Sub-minimum Wage Reinforces a Life of Poverty Multiple studies confirm that most employees in sheltered workshop earn less than $2 per hour or $175/month less fees associated with housing, food, transportation and services. People with disabilities in supported employment earn $5.75/hour or $456/month Workshops that do pay the minimum wage often do not have enough work to employ workers full time

Sub-minimum Wage Reinforces a Life of Poverty

Sheltered Workshops Lead Nowhere While sheltered workshops purport to offer pre-employment and pre-vocational skills, these programs most often only prepare people with disabilities for long term sheltered employment. $1 was spent on supported employment compared to the $4 utilized for segregated day programs Part time work with no opportunity for advancement with permanent reliance on public benefits and subsidies Bigotry of low expectation

Sheltered Workshops Profit Greatly from the Status Quo According to a study by the GAO, sheltered workshops are largely funded as follows: 46% from State and County Agencies 35% from Production Contracts 9% from Retail Sales 2% from Donations 1% from Investment Income 7% from Other Sources

Vocational Rehabilitation Social Services Block Grants Local Taxes Funding Medicaid Home and Community-Based Services Waivers (HCBS) Medicaid Rehabilitation Option Targeted Case Management Vocational Rehabilitation Social Services Block Grants Local Taxes

Solutions Listen to the Self Advocates Change the business model and think diversity Raise expectations, tell the story and share successes Develop policies and practices that require employment outcomes Educate, educate, and educate some more

Policy Recommendations End Segregated Employment and Sub-minimum Wage Restrict all federal and state money that is spent on employers who segregate employees. End the ability of employers to pay sub-minimum wage. End all programs that emphasize moving young adults from the classroom to a segregated or sub-minimum wage employment environment.

Policy Recommendations Promote Integrated and Comparable Wage Employment Alternatives Strengthen existing and create new federal and state tax incentives for employers to place employees with disabilities in integrated environments at comparable wages. Assist employees with disabilities to find employment in the general workforce in jobs that they choose.

Policy Recommendations Increase Labor Protections and Enforcement Fully investigate violations and abuses perpetrated by employers that pay less than the minimum wage or segregate workers with disabilities. Increase penalties for violators. Formalize standards for employee evaluations and productivity measurements.

Where we are Now Lane Case in Oregon – settlement agreement Rhode Island settlement WIOA / WIOA and the Committee Report (2014 and 2016) Employment First Employment is the only route our of POVERTY

Employment First Making employment the first and preferred outcome for people with disabilities. “We need everyone in the workforce for business to thrive and communities to prosper.” Working is fundamental to adulthood, quality of life issues, and earning the means to exercise our freedoms and choices as citizens.

Where we Were Department of Justice Department of Labor Rehabilitation services Administration /Office of Special Education Programs Equal Employment Opportunity Commission Center for Medicare/Medicaid Services

Contact Information Segregated and Exploited - A Call to Action http://www.ndrn.org/en/component/content/article/24-hompagestories/261-report-finds-exploitation-at-work.html Real Jobs for Real Pay – The Riot: issue 29 July 2011 www.theriotricks.org SABE position statement on ending subminimum wage employment http://sabeusa.org/?catid=179

Contact Information Questions, Comments, Suggestions Cheryl Bates-Harris National Disability Rights Network 900 2nd Street NE, suite 211 Washington, DC 20002 202-408-9514 x 117 Cheryl.Bates-Harris@ndrn.org