Today’s show is about Competitive Integrated Employment. What is it? What does the term mean? Where did it come from? And how does it all intersect with the new Workplace Choice and Flexibility for Individuals with Disabilities Act (HR 5658)?
INTRODUCTION
Hello and welcome to Day in Washington, your disability policy podcast. I’m your host Day Al-Mohamed working to make sure you stay informed.  Recently, there has been a lot of discussion around the Workplace Choice and Flexibility for Individuals with Disabilities Act and competitive integrated employment. Including a massive protest on the Hill by disability group ADAPT.  What is competitive integrated employment? And why all the fuss?
BACKGROUND
This issue actually has a fairly long history and involves more than one law so bear with me as I try to give a bit of context. This is about disability employment and it goes all the way back to the early 1930s. During those years, as a way to encourage employment for as many people as possible, the National Industrial Recover Act (NIRA) created a system of certificates that allowed for productivity-based wages for people with disabilities. Basically, if a person with a disability couldn’t make widgets as fast as the non-disabled guy, the company was allowed to pay him less. Sounds like that makes sense, right? Especially, in a country trying to recover from the Great Depression. It gets as many people jobs as possible. This was made permanent in the Fair Labor Standards Act of 1938. It is Section 14(c) and formally allows employers to pay wages below the federal minimum to employees who have disabilities.

That same year, the Wagner O’Day Act was passed requiring that all federal agencies purchase certain supplies and services from nonprofit agencies who employed people who are blind. Basically, the government HAD to buy the mops and brooms, made by blind people, in these non-profits. The program was expanded in 1971 to include people who have other significant disabilities and renamed the Javits-Wagner O’Day Act (JWOD). It was renamed again in 2006 as AbilityOne.

So, let me give you a little idea about how big this industry is. Currently, there are more than 600 of these non-profits who produce products and services under the AbilityOne Program and the Federal government MUST buy these products from them. More than mops and brooms, it is now pencils and paper, military uniforms, and beyond physical products, there are contracts for services like cleaning and cafeteria and commissary work.  In FY2015 alone, the Federal Government purchased more $3.2 billion of products and services.

The laws about disability employment start to intersect with the general perception that many of the AbilityOne non-profits use Section 14(c) in segregated work centers aka sheltered workshops. To qualify to an AbilityOne non-profit, at least 75% of the work must be done by people who are blind or have other significant disabilities. By using Section 14(c), the labor cost for these companies is significantly lower than comparable private companies who pay “regular rates” for labor.

I keep talking about AbilityOne and their non-profits and it seems kind of large and amorphous. To bring this down to reality and to an entity you might be familiar with – Goodwill Industries. Goodwill, you know, where you donate all your old clothes and children’s outgrown toys…they are an AbilityOne non-profit.

So now, let me get to the nitty-gritty details of the issue...and a third piece of legislation. The Workforce Innovation and Opportunities Act (WIOA), was signed into law in 2014. I won’t drown you in all the details but let me highlight a couple of “biggies.” WIOA updates the Rehabilitation Act of 1973. The part we are specifically interested in is where it oversees the vocational rehabilitation system which helps people with disabilities get the support and tra...