The State or non-profit organization may contract with private business to operate
the workshop, but usually provides individual supervision for the handicapped worker.
A program of rehabilitation is established for each individual, and typically consists
of (1) a diagnostic and evaluation period; (2) a personal adjustment training period;
and (3) a vocational training period. During this rehabilitation training, the individuals
are usually paid at reduced pay rates. While the individual is completing this regimen,
the services of these individuals are generally not performed as an employee and the
remuneration is not wages for employment.
After completing the rehabilitation program, the individual leaves the workshop environment
and enters regular employment, if able to perform an available job. Individuals who
are unable to obtain regular employment because of the severity of their impairments
or unavailability of jobs, are retained in the workshop indefinitely or until placed
in regular employment. The individuals performing services are paid at a fraction
of or up to minimum wage, depending on their capacity to perform the services. The
services of these individuals generally are performed as employees.
Reference: Social Security Ruling 69-60