Extended (Sheltered) Employment

Synopsis of Federal Regulations

Reference: Sec. §361.5

The regulatory definition of employment outcome under the vocational rehabilitation (VR) program has been amended to refer to outcomes that occur in integrated settings. Here are several pertinent definitions:

Employment outcome means, with respect to an individual, entering or retaining full-time or, if appropriate, part-time competitive employment in the integrated labor market, supported employment, or any other type of employment in an integrated setting, including self-employment, telecommuting, or business ownership, that is consistent with an individual's strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

Sec. 361.5 (b) (16)

Extended employment means work in a non-integrated or sheltered setting for a public or private nonprofit agency or organization that provides compensation in accordance with the Fair Labor Standards Act.

Reference: Sec. §361.5 (b) (16)

Competitive employment means work:
(i) In the competitive labor market that is performed on a full-time or part-time basis in an integrated setting; and
(ii) For which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not disabled.
Reference: Sec. §361.5 (b) (11)

Integrated setting means, with respect to an employment outcome, a setting typically found in the community in which applicants or eligible individuals interact with non-disabled individuals, other than non-disabled individuals who are providing services to those applicants or eligible individuals, to the same extent that non-disabled individuals in comparable positions interact with other persons.
Reference: Sec. §361.5 (b) (33) (ii)

In addition, the federal regulations now:

RS Policy

Determination as to whether any job meets the regulatory definition of integrated setting, and therefore qualifies as an “employment outcome” for purposes of the VR program, must be made on a case-by-case basis. There is no set ratio of people with disabilities to people without disabilities in the workforce that would by definition constitute an integrated work setting. Level of pay and benefits, while they are often measures of quality and client choice, are not pertinent to the determination of whether a workplace meets the criteria for an integrated setting.

The counselor makes this determination of whether a workplace meets the criteria for an integrated setting. Factors to be considered and documented in the record of services include the following:

Federal Ruling Regarding Center Industries, Wichita

The U.S. Office of Special Education and Rehabilitation Services has ruled that Center Industries Corporation, Wichita, satisfies the requirements for the definition of “integrated setting.” Therefore, placements at Center Industries constitute allowable employment outcomes (Status 26s) under the VR program when the conditions for Status 26 have otherwise been met. This ruling applies to Center Industries only, and may not be applied to other entities. When placing individuals in employment at Center Industries, the analysis and documentation requirements specified in the RS Policy section above are waived. (Reference: correspondence from John H. Hager, received February 24, 2005.)

Referance: Federal Technical Assistance Circular RSA-TAC-06-01: Factors State Vocational Rehabilitation Agencies Should Consider When Determining Whether a Job Position Within a Community Rehabilitation Program is Deemed to be in an "Integrated Setting"
(See Section 13 / Part 12)

Effective Date: April 10, 2006