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State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage rule (2016)

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The State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage rule is a significant rule issued by the U.S. Department of Education effective September 19, 2016, that amended department regulations regarding programs for individuals with disabilities, including the State Vocational Rehabilitation Services program and the State Supported Employment Services program. The rule implemented amendments to the programs that resulted from the enactment of the Workforce Innovation and Opportunity Act of 2014.[1]

HIGHLIGHTS
  • Name: State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage
  • Code of Federal Regulations: 34 CFR Parts 361, 363, and 397
  • Agency: Office of Special Education and Rehabilitative Services, Department of Education
  • Type of significant rule: Economically significant rule

    • Timeline

    The following timeline details key rulemaking activity:

    • September 19, 2016: The final rule took effect.[1]
    • August 19, 2016: The Department of Education published a final rule.[1]
    • June 15, 2015: The Department of Education closed the comment period.[2]
    • May 20, 2015: The Department of Education held a public meeting to seek comments on the proposed rule.[3]
    • April 30, 2015: The Department of Education held a public meeting to seek comments on the proposed rule.[3]
    • April 23, 2015: The Department of Education announced that two public meetings would be held to seek comments on the proposed rule.[3]
    • April 16, 2015: The Department of Education published a notice of proposed rulemaking and opened the comment period.[2]
    • July 22, 2014: The Workforce Innovation and Opportunity Act of 2014 (WIOA) was signed into law by President Barack Obama (D).

    Background

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    President Barack Obama (D) signed the Workforce Innovation and Opportunity Act (WIOA) into law on July 22, 2014, which aimed "to improve coordination across the primary Federal programs that support employment services, workforce development, adult education, and vocational rehabilitation activities," according to the regulations published in the Federal Register. The law was sponsored by Rep. Virginia Foxx (R) as an amendment to the Workforce Investment Act of 1998. The law provides states with programs and services to help unemployed persons to attain employment, education, training, and support services to succeed in finding employment.[1][4]

    The enactment of the WIOA resulted in changes to the State Vocational Rehabilitation Services program and the State Supported Employment Services program. The State Vocational Rehabilitation Services program provides funding to states to assist with operating vocational rehabilitation (VR) programs which "provide VR services for individuals with disabilities, consistent with their strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice, so that they may prepare for and engage in competitive integrated employment or supported employment and achieve economic self-sufficiency."[5]

    The State Supported Employment Services program provides funding to states to assist "in developing and implementing collaborative programs with appropriate entities to provide supported employment services for individuals with the most significant disabilities, including youth with the most significant disabilities, who require supported employment services following the achievement of a supported employment outcome."[6]

    In response to the changes to the programs, the U.S. Department of Education proposed the State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage rule on April 16, 2015. The rule also implemented regulatory changes made by the WIOA that required employers to meet certain requirements before paying youth with disabilities at subminimum wages.[2]

    Summary of the rule

    The following is a summary of the rule from the rule's entry in the Federal Register:

    “ The Secretary amends the regulations governing the State Vocational Rehabilitation Services program and the State Supported Employment Services program to implement changes to the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act (WIOA) signed into law on July 22, 2014. The Secretary also updates, clarifies, and improves the prior regulations.


    Finally, the Secretary issues new regulations regarding limitations on the use of subminimum wages that are added by WIOA and under the purview of the Department.[1][7]

    		”

    Summary of provisions

    The following is a summary of the provisions from the final rule's entry in the Federal Register:[1]

    “ WIOA makes significant changes to title I of the Act that affect the VR program. First, WIOA strengthens the alignment of the VR program with other core components of the workforce development system by imposing requirements governing unified strategic planning, common performance accountability measures, and the one-stop delivery system. This alignment brings together entities responsible for administering separate workforce and employment, educational, and other human resource programs to collaborate in the creation of a seamless customer-focused service delivery network that integrates service delivery across programs, enhances access to the programs' services, and improves long-term employment outcomes for individuals receiving assistance. In so doing, WIOA places heightened emphasis on coordination and collaboration at the Federal, State, and local levels to ensure a streamlined and coordinated service delivery system for job-seekers, including those with disabilities, and employers. Therefore, the Departments of Education and Labor are issuing joint final regulations to implement jointly administered activities under title I of WIOA (e.g., those related to Unified or Combined State Plans, performance accountability, and the one-stop delivery system), applicable to the workforce development system's core programs (Adult, Dislocated Worker, and Youth programs; Adult Education and Family Literacy Act programs; Wagner-Peyser Employment Services program; and the VR program).[7] ”


    The following provisions were also included in the final rule's entry regarding the State Supported Employment Services program.[1]

    “ Under the State Supported Employment Services program (Supported Employment program) authorized under title VI of the Act (29 U.S.C. 795g et seq.), the Secretary provides grants to assist States in developing and implementing collaborative programs with appropriate entities to provide supported employment services for individuals with the most significant disabilities, including youth with the most significant disabilities, to enable them to achieve supported employment outcomes in competitive integrated employment. Grants made under the Supported Employment program supplement grants issued to States under the VR program (34 CFR part 361).


    WIOA makes several significant changes to title VI of the Act, which governs the Supported Employment program. All of the amendments to title VI are consistent with those made throughout the Act, namely to maximize the potential of individuals with disabilities, especially those with the most significant disabilities, to achieve competitive integrated employment and to expand services for youth with the most significant disabilities.[7]

    		”


    The following provisions were also included in the final rule's entry regarding limitations on the use of subminimum wage.[1]

    “ Section 511 of the Act, as added by WIOA, imposes requirements on employers who hold special wage certificates under the Fair Labor Standards Act (FLSA) that must be satisfied before the employers may hire youth with disabilities at subminimum wages or continue to employ individuals with disabilities of any age at the subminimum wage level. Section 511 also establishes the roles and responsibilities of the DSUs for the VR program and State and local educational agencies in assisting individuals with disabilities, including youth with disabilities, to maximize opportunities to achieve competitive integrated employment through services provided by VR and local educational agencies.


    The addition of section 511 to the Act is consistent with all other amendments to the Act made by WIOA. Throughout the Act, Congress emphasizes that individuals with disabilities, including those with the most significant disabilities, can achieve competitive integrated employment if provided the necessary supports and services. The limitations imposed by section 511 reinforce this belief by requiring individuals with disabilities, including youth with disabilities, to satisfy certain service-related requirements in order to start or maintain, as applicable, subminimum wage employment.[7]

    		”

    Significant impact

    See also: Significant regulatory action

    The Office of Management and Budget (OMB) deemed this rule economically significant pursuant to Executive Order 12866. An agency rule can be deemed a significant rule if it has had or might have a large impact on the economy, environment, public health, or state or local governments. The term was defined by E.O. 12866, which was issued in 1993 by President Bill Clinton.[1]

    Text of the rule

    The full text of the rule is available below:[1]

    See also

    External links

    Footnotes

    1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Federal Register, "State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage," August 19, 2016
    2. ↑ 2.0 2.1 2.2 Federal Register, "State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage," April 16, 2015
    3. ↑ 3.0 3.1 3.2 Federal Register, "State Vocational Rehabilitation Services Program; State Supported Employment Services Program; Limitations on Use of Subminimum Wage," April 23, 2015
    4. ↑ Congress.gov, "H.R.803 - Workforce Innovation and Opportunity Act," accessed April 6, 2023
    5. ↑ Rehabilitation Services Administration, "State Vocational Rehabilitation Services Program," accessed April 10, 2023
    6. ↑ Rehabilitation Services Administration, "State Supported Employment Services Program," accessed April 10, 2023
    7. ↑ 7.0 7.1 7.2 7.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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