Fact Sheet: Workforce Innovation and Opportunity Act (WIOA) Regulations

WIOA reauthorizes and updates the Rehabilitation Act of 1973 (the law providing oversight of the public vocational rehabilitation system) while also updating the structure of the country’s workforce development system, used by the public and businesses to assist with their employment and training needs. The purpose of this fact sheet is to examine those areas of WIOA that impact the public Vocational Rehabilitation system, which are of greatest relevance to advocates of full inclusion of individuals with disabilities in the general workforce. Areas examined include:

  • New requirements and an enhanced role for the public vocational rehabilitation regarding transition from school to adult life.
  • New limitations on use of subminimum wage under Section 511 that went into effect in July 2016.

Why Employment for Americans with Disabilities is Critical

There is a massive gap in employment rates between people with and without disabilities (32.5% vs. 71.4%, respectively). For people with intellectual and developmental disabilities, the employment disparity widens further---only 15% of working-age adults worked in integrated jobs.[1] These numbers haven’t changed for more than 15 years, making major enhancements to current services and supports via WOA critically important. The lack of workforce participation of citizens with disabilities results in lives of poverty, dependence, and isolation, while costing the government billions of dollars for social services and supports. Many individuals with disabilities spend their days earning little or no money in facility-based services, not only costingthe government billions of dollars, but also keeping millions of Americans in poverty without income or job skills. Meantime, employers are facing increasing shortages of skilled workers, and individuals with disabilities can be an important untapped source for meeting growing labor needs.Access to “real jobs with real wages” is essential if citizens with disabilities are to avoid lives of poverty, isolation, and ongoing dependence on public assistance.

The most significant changes to the State VR Program included in the final rule issued by ED to implement Title I of the Rehabilitation Act, as amended by Title IV of WIOA are as follows:

  • The final rule strengthens the alignment of the State 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.
  • The final strengthens requirements for the State VR Program to be fully responsive to business needs, and prepare individuals for successful career pathways.
  • The final rule emphasizes the achievement of competitive integrated employment as a primary objective for youth and adults with disabilities, in support of long-standing Rehabilitation Services Administration policy, while still allowing the choice of non-competitive work settings funded by other sources.
  • As a result of the final rule, state public VR systems are required to have enhanced partnerships with state and local educational agencies, and spend a significant portion of their resources on preparing students with disabilities to successfully transition from school into the workforce, thus reducing the reliance of these students on public assistance as adults.
  • The Preamble to the final rule highlights the major regulatory changes needed to implement the amendments to the State Supported Employment Services Program tomaximize 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.
  • Section 511 of the Rehabilitation Act (Limitations on Use of Subminimum Wages), as added by WIOA, imposes requirements on employers who hold special wage certificates under Section 14(c) of 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.[2] Section 511 in no way prohibits individuals from earning subminimum wages, but simply requires additional steps in order to do so, to ensure that every effort has been made to employ individuals in competitive integrated employment.

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[1] Butterworth, J., Smith, F., Cohen Hall, A., Migliore, A., Winsor, J., Domin, D. StateData: The National Report on Employment Services and Outcomes. Institute for Community Inclusion, University of Massachusetts Boston. Winter 2013, p. 9.

[2]