SL 60001.645 Sheltered Workshops
A. WHAT A SHELTERED WORKSHOP IS
A State or non-profit organization established to carry out a program of rehabilitation for handicapped individuals, and/or to provide these individuals with remunerative employment or other occupational rehabilitating activity.
B. HOW A SHELTERED WORKSHOP OPERATES
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