ADDP NEW BANNER 2011
Budget Conference Committee Still Not Done
Federal Contracts to Pay Disability Workers New Federal Minimum Wage

 

Report from Disability Scoop 

 

The Obama administration is moving forward with a plan to ensure that federal contract dollars no longer go toward paying workers with disabilities less than minimum wage.

 

Under a proposed rule published Tuesday in the Federal Register, the U.S. Department of Labor would raise the minimum wage for federal contract workers - including those with disabilities - to $10.10 per hour.

 

The change would effectively put an end to federal contractors paying workers with disabilities less than minimum wage, a practice that's traditionally been allowed for employers who obtain special permission from the Labor Department.

 

Gary's note:  This action does not prohibit existing 14C contracts which are still permissible and allowed by law. 

 

 

Earlier this year, President Barack Obama issued an executive order mandating the pay hike. After leaving workers with disabilities who earn so-called subminimum wage out of his initial proposal, Obama ultimately opted to include such individuals in the final version of his executive order under pressure from disability advocacy groups.

 

"If you work full-time, you shouldn't be living in poverty," Obama said at the time. "This executive order will cover Americans with disabilities because this principle doesn't just apply to some of us, it applies to all of us."

 

The Labor Department action this week opens Obama's plan up for public comment through July 17. Regulators are then expected to issue a final rule on the matter by Oct. 1.

 

Under the proposal, the wage increase would apply to individuals employed under new federal contracts and replacements for expiring agreements starting Jan. 1, 2015.

 

The change is expected to result in a pay raise for nearly 200,000 workers, according to the Labor Department. Agency officials said they have no way of estimating how many of the workers are people with disabilities.

 

 

Bridging House/Senate Differences Takes Time

 

1980's rocker, Tom Petty and the Heartbreakers may have had it right with their 1981 hit, "The Waiting".  The words from the chorus may aptly describe the way advocates view the long process involved in working out the differences between House and Senate budget numbers on key items.

As advocates wait and count the days until the Conference Committee finishes its work, perhaps Petty said it best with these lyrics:

The waiting is the hardest part

Every day you see one more card
You take it on faith, you take it to the heart
The waiting is the hardest part
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Key Disability Issue to Be Resolved in Conference
  inclusive employment banner
Central to the disability community will be how the Conference Committee addresses the House and Senate differences on disability employment with respect to the Governor's request for $5.5 million to begin the process of expanding inclusive community employment options as outlined in the DDS/Arc/ADDP Blueprint for Employing People with Developmental Disabilities.

For the last five years, DDS has asked the provider community to outline how people served could move from sheltered workshops to more inclusive settings, such as group employment, CBDS (community based day supports) and supported employment.  At the outset of this process five years ago, some academics suggested to DDS that such a transition could be accomplished on a revenue neutral basis.  The Blueprint outlined the need for additional fiscal investments and initially recommended $26.5 million over four years with an $11.5 million start in FY 15.  The Governor cut that amount to $5.5 million and the House reduced the number even less to $1 million, while the Senate approved $5 million, all funding levels extending DDS's transition program out into additional years.

Further complicating this discussion has been the action of the House preventing further sheltered workshop program reductions.  ADDP has been involved in some discussions with key players to see if there may be any consensus on how to go forward.  No hints yet from the Conference Committee how this issue might be resolved.
Family Support Remains Important Path Forward
 
family One of the most effective DDS programs remains as a point of dispute between the House and Senate FY 15 Budgets and Governor Deval Patrick.

Both the Governor and the House have recommended a $2.5 million increase to Respite and Family Support programs.  The Senate did not endorse this increase.  Every dollar spent in these programs, according to nearly every  program and budget analysis helps keeps families intact, prevents out of home placements and helps bring a modicum of peace to families who often have no break from the 24/7 needs of caring for a family member with challenging needs.

Despite the efficacy of these programs, family support programs have long struggled for sufficient funding; and were particularly hard hit by major budget cuts during the Great Recession.  In the last few years, both Governor Patrick and the Legislature have reversed this process and have began to reinvest in these critical services providing in home therapies as well as respite and other family services.