Michael Hansen, Director Rick Scott, Governor Segregated and Exploited Presented by: J.B. Black, PhD, John Bartow Black Consulting Nancy Boutot, MS, Agency for Persons with Disabilities

Segregated and Exploited A call to Action! The Failure of the Disability Service System to Provide Quality Work 2

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.” 4

Henry’s Turkey Service The “Bunkhouse” was unheated, boarded up, and it was where Henry’s Turkey Service housed its workers with disabilities. 5

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 Rehabilitation Act 6

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 Olmstead 2000 – Another DD Act amendment 7

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 8

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. 9

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 10

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 11

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? 12

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 13

Policy Recommendations “Pay Me Minimum Wage or I’m Leaving!” - John Adler 14

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 15

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 16

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 17

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 18

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) 19

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 20

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 21

22 Thank You!