1. Texas Transition Conference,
Workforce Innovation & Opportunity Act (WIOA) & Section 511: Impact on Employment Outcomes
Texas Transition Conference,
Houston, TX
February 2017

2. Session Outcomes
Gain knowledge of Section 511 of the Rehabilitation Act
Identify actions SEAs, LEAs and Vocational Rehabilitation Agencies need to take
Identify resources to assist with Section 511 of the Rehabilitation Act implementation

3. Title V of the Rehabilitation Act
WIOA amends title V of the Act by adding:
Section 511 Limits use of subminimum wage
The provisions in section 511 are effective 2 years after enactment, July 22, 2016.
Section 511 demonstrates the intent that individuals with disabilities, especially youth with disabilities, must be afforded a full opportunity to prepare for, obtain, maintain, advance in, or reenter competitive integrated employment.

4. Workforce Innovation & Opportunity Act (WIOA)
Expanded role for VR in transition
Early involvement with students transitioning from school to employment & post-secondary education
Increased coordination with SEAs and LEAs
Increased work-based learning opportunities
Advocates from around the country have different points of view and experiences unique to their state.

5. WIOA (cont.) Movement away from segregated settings
Increased emphasis toward integrated community settings
Efforts intended to limit the use of sub-minimum wage
Increased involvement with business

6. WIOA (cont.)
Increased collaboration and alignment among the workforce partners
Increased VR role with workforce development agencies
Data collection, accountability and aligned performance measures
Increased knowledge about and implementation of evidenced-based/research practices

7. How does WIOA Align with IDEA?
The provisions related to the work of VR in schools creates a continuum of services that aligns with IDEA but does not supplant the legal responsibilities of schools
Mandates that VR and SEAs/LEAs jointly develop a system so students achieve competitive integrated employment
Cannot use segregated facility based agencies that provide subminimum wage

8. Section 511 builds on Employment First
Expecting, encouraging, providing, creating, and rewarding integrated employment in the workforce:
at minimum or competitive wages and benefits;
as the first and preferred outcome for working-age youth and adults with disabilities;
especially those with complex and significant disabilities, for whom job placement in the past has been limited, or traditionally has not occurred.
the Section 14(c) program continues to be used in the employment of roughly 228,600people with disabilities across the country.
(Advisory Committee on Increasing Competitive Integrated Employment for Individuals with Disabilities )

9. What is Section 511 about? The purpose of Section 511 is:
ensure that individuals with disabilities have access to information and services that will enable them to achieve competitive integrated employment.
It includes requirements for State VR agencies, subminimum wage employers and local and/or State educational agencies, including specific requirements for youth prior to their participation in subminimum wage employment.
Section 511 of the Rehabilitation Act places limitations on the payment of subminimum wages by entities holding special wage certificates under Section 14(c) of the Fair Labor Standards Act. facility-based segregated employment ( referred to as sheltered workshops)

10. What is Section 511 about?
Limitations on employers who hold special subminimum wage certificates
Changes go into effect July 2016
Specific conditions must be met before employers can:
Hire youth with disabilities (under age 24) at subminimum wage
Continue to employ individuals with disabilities (of any age) at subminimum wage

11. Section 511 and Employed Youth
Must provide information and referral, and career counseling
Youth must be informed by the subminimum wage employer of self-advocacy/self-determination and peer mentoring
Year 1 – process must occur every 6 months; annually for 2 years
§ What are the responsibilities of a designated State unit for individuals with disabilities, regardless of age, who are employed at a subminimum wage?
(a) Counseling and information services. (1) A designated State unit must provide career counseling, and information and referral services, as described in §397.20(a)(4) to individuals with disabilities, regardless of age, or the individual’s representative as appropriate, who are known by the designated State unit to be employed by an entity, as defined in §397.5(d), at a subminimum wage level.
(2) A designated State unit may know the identification of individuals with disabilities described
in this paragraph through the vocational rehabilitation process or by referral from the client assistance program, another agency, or an entity, as defined in §397.5(d).
(3) The career counseling and information and referral services must be provided in a manner that– (i) Is understandable to the individual with a disability; and
(ii) Facilitates independent decision-making and informed choice as the individual makes decisions regarding opportunities for competitive integrated employment and career advancement, particularly with respect to supported employment, including customized employment.
(b) Other services. (1) Upon a referral by an entity, as defined in 397.5(d), that has fewer than 15 employees, of an individual with a disability who is employed at a subminimum wage by that entity, a designated State unit must also inform the individual of self-advocacy, self-determination, and peer mentoring training opportunities available in the community.
(2) The services described in paragraph (c)(1) of this section must be provided by an entity that does not have a financial interest in the individual’s employment outcome.
(c) Required intervals. The services required by this section must be carried out once every six months for the first year of the individual's subminimum wage employment and annually thereafter for the duration of such employment.
(d) Documentation. The designated State unit must provide timely documentation to the individual upon completion of the activities required under this section.
(e) Provision of services. Nothing in this section will be construed as requiring a designated State unit to provide the services required by this section directly. A designated State unit may contract with other entities, i.e., other public and private service providers, as appropriate, to fulfill the requirements of this section.
(Authority: Sections 12(c) and 511(c) of the Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 794g(c))

12. Section 511: What it means for schools
Prohibits SEAs and LEAs form entering into contracts or agreements with community rehabilitation providers to transition youth into segregated programs
Schools currently contracting with agencies holding subminimum wage certificates will no longer be able to continue
Schools and VR can use community rehabilitation providers to provide services in community integrated settings

13. Competitive Integrated Employment
The standard under WIOA
Combines old definitions of “competitive employment” and “integrated setting”
Replaces the term “gainful employment” with “competitive integrated employment”
competitive integrated employment is the primary goal for youth in transition, including youth with significant disabilities

14. Competitive integrated Employment
Includes mandatory criteria related to: compensation, advancement, and integration in the workplace
Clarifies that the employment location must be in “a setting typically found in the community.”

15. Competitive integrated Employment
Employee with a disability’s interaction with other employees and others, as appropriate (e.g., customers and vendors), who are not persons with disabilities (other than supervisors and service providers) must be to the same extent that employees w/o disabilities in similar positions interact with these same persons
Interaction must occur as part of the individual’s performance of work duties and must occur both in the particular work unit and the entire work site, as applicable

16. Section 511: Subminimum Wage
Section 511 of the Act establishes the roles and responsibilities of VR program and State and local educational agencies, in assisting individuals with disabilities, including youth with disabilities, who are considering employment, or who are already employed, at a subminimum wage, to maximize opportunities to achieve competitive integrated employment through services provided by VR and the local educational agencies.

17. Section 511: Subminimum Wage
Takes effect July 22, 2016
Limits the payment of subminimum wages by employers holding special wage certificates under the Fair Labor Standards Act (FLSA)
Prohibits employers from hiring youth with disabilities at a subminimum wage level unless the youth are afforded meaningful opportunities to access services, including pre-employment transition services under WIOA or IDEA

18. Section 511: Subminimum Wage
VR must provide, at certain prescribed intervals, career counseling and information and referral services, designed to promote opportunities for competitive integrated employment, to individuals with disabilities, regardless of age, who are known to be employed at a subminimum wage level for the duration of such employment.

19. Transition & WIOA Transition and employment services – not “programs”
Presumption that all students can work
No more asking “Do you want to work?” but instead “Where do you want to work?”
Job shadowing, internships, volunteering, community involvement
After school/weekend & summer employment
Integrate students into school-to-work opportunities & vocational courses

20. Where can I find a copy of the Section 511 Act and Regulations?
Section 511 is a small piece of the WIOA legislation which can be found on the US Department of Education or the US Department of Labor’s web pages. The regulations are currently in draft
Information can be found at

21. When do the new requirements of Section 511 Act go into effect?
Section 511 goes into effect July 22, 2016 which is two years after the signing of the WIOA.
However, everyone needs to be aware of these changes as soon as possible, especially the school districts. This is important to reflect changes in student’s Individual Education Plans prior to July 22, 2016.

22. Does Section 511 eliminate subminimum wage?
Section 511 only eliminates subminimum wage options for students with disabilities. Section 511 does not eliminate the subminimum wage option for all other individuals with disabilities. Employers who have a special wage certificates, commonly known as 14(c) certificate will still be able to pay less than minimum wage for individuals with disabilities who are not students from a secondary school.
Section 511 assures that students with disabilities have the opportunity to receive Pre-Employment Transition Services and all other individuals with disabilities have the opportunity to receive employment information and career counseling-related services.

23. Can the school district fund or arrange for a student to work at less than minimum wage?
Section 511 states that a school district may not enter into a contract or make other arrangements with an subminimum wage employer for an individual who is age 24 or younger which the work is compensated at a subminimum wage.
This can be interpreted as long as the individual is a student of a school district, the student cannot be involved in any subminimum wage employment. However once the individual is no longer a student of the school district, the individual can participate in subminimum wage employment even if they are under 24 years of age.

24. If the student cannot participate in subminimum wage employment then what activities should the school district focus on?
WIOA has defined five service categories for Pre-Employment Transition Services (pre- ETS). It is recommended that school districts focus on providing the five pre-ETS instead of subminimum wage employment.
Job exploration and counseling
Work based learning experiences
Counseling for post-secondary education
Workplace readiness
Instruction in self-advocacy

25. Can a student’s Individual Education Plan have the transition employment goal that will involve subminimum wage employment?
Yes, the student’s Individual Education Plan (IEP) can still identify an employment goal that will pay at subminimum wage but certain requirements must be met: These requirements consist of:
The student cannot participate in any subminimum wage employment as long as individual is considered a student under the school district;
The student must be referred to the Vocational Rehabilitation Program;
The student must be given the opportunity to receive all five Pre-Employment Services; and
Documentation of Subminimum Wage needs to be completed prior to completing school services.

26. How does Section 511 impact a youth with a disability who is no longer involved with a school district?
A youth with a disability is an individual between the ages of 14 and 24.
Effective 7/22/2016 If the youth has completed secondary school but still younger than 24 years old, s/he cannot start working for less than minimum wage until they have applied for VR and had the opportunity to receive pre-employment transition services.
If the youth is already working at subminimum wage on 7/22/2016, it is recommended they are referred to VR for the opportunity for pre-employment transition services.

27. Do Section 511 requirements apply to individuals with disabilities who are not receiving any wages or are being paid at minimum wage?
No. The requirements of Section 511 only applies to individuals being paid less than minimum wage. If individuals are participating in any paid employment or if they are being paid at/above minimum wage then Section 511 requirements do not apply and they do not need the reviews.
However if an individual with a disability may benefit from VR services, it is recommended they be referred to the local VR office.
For VR, they still have to address employment outcomes that are not in a competitive integrated setting

28. Do Section 511 requirements apply to individuals with disabilities who are working in an integrated work environment but still receive some wages less than minimum wage?
Yes. Section 511 requirements do not change for segregated or integrated work settings.

30. Thank You! Laura Owens, Ph.D., CESP Ruth Allison, MBA