For years, sheltered workshops provided employment for people with developmental disabilities in isolated, controlled environments. While these workshops offered routine and some structure, they operated separately from mainstream employment and typically paid participants far below the minimum wage. In response to evolving social, legal, and economic pressures, the New York State Office for People with Developmental Disabilities (OPWDD) began phasing out this model of employment in 2013. By 2018, the sheltered workshop system had been fully discontinued across the state, a move that aimed to promote greater inclusion and fair employment for people with developmental disabilities.
At the same time, the New York State Office of Mental Health (OMH) has taken a different approach to employment services for individuals with mental health conditions. While both agencies aim to promote integrated, meaningful work opportunities, their paths diverge in key ways.
The OPWDD Approach: Phasing Out Sheltered Workshops
In line with federal policy shifts, OPWDD has focused on moving individuals with developmental disabilities into competitive, integrated employment. The phasing out of sheltered workshops was influenced by several factors:
Integration and Inclusion: Sheltered workshops were criticized for segregating individuals with disabilities from the broader workforce. The goal of OPWDD’s new employment programs is to place people in community-based jobs, where they can work alongside individuals without disabilities.
Fair Wages: Sheltered workshops paid subminimum wages under a federal law that allowed employers to pay workers with disabilities based on productivity. This practice was seen as exploitative and dehumanizing, leading to increased pressure to transition workers to fair-paying jobs.
Federal Mandates: The Workforce Innovation and Opportunity Act (WIOA) of 2014 and guidance from the Centers for Medicare & Medicaid Services (CMS) pushed states to discontinue segregated employment settings and focus on competitive, integrated employment.
Quality of Life: Research supports that individuals with developmental disabilities who participate in integrated employment experience greater independence, higher self-esteem, and better social inclusion.
With these changes, OPWDD introduced programs like Supported Employment (SEMP), which offers job coaching and placement services, and Pathway to Employment, which helps individuals develop career skills and transition to meaningful work. These initiatives align with the Americans with Disabilities Act (ADA) and its emphasis on equality of opportunity and full participation in society.
The OMH Approach: Supporting People with Mental Health Conditions
While OPWDD phased out sheltered workshops, the New York State Office of Mental Health (OMH) has taken a more flexible approach to employment for individuals with mental health conditions. OMH’s focus is on providing a continuum of services to meet the diverse needs of individuals with mental health challenges, recognizing that the path to employment varies widely depending on a person’s condition, history, and needs.
Unlike OPWDD, OMH has not mandated the discontinuation of any specific program type but instead promotes several models of employment support:
Personalized Employment Assistance: OMH’s programs focus on individualized support, helping individuals identify personal goals, overcome barriers to employment, and sustain long-term employment through services like job coaching and benefits counseling.
Supported Employment: OMH also provides supported employment services through the Individual Placement and Support (IPS) model, which helps individuals with serious mental health conditions obtain competitive, integrated employment. IPS emphasizes rapid job placement in mainstream jobs that match a person’s interests and skills, with ongoing support to help maintain the position.
Peer Support and Wellness Programs: OMH also embraces peer support models that can play a role in helping individuals transition to work. Programs like OnTrackNY, which provide recovery-focused mental health treatment and employment support for young people experiencing early psychosis, reflect OMH’s recognition of the need for integrated approaches to both mental health recovery and employment.
Flexibility and Choice: OMH’s guidance reflects an understanding that recovery is not linear. Some individuals may prefer volunteer work, education, or part-time employment as steps toward full-time competitive employment, and OMH supports these varied paths.
Key Differences: OPWDD vs. OMH
While both OPWDD and OMH have embraced the principles of integrated, community-based employment, their approaches reflect the distinct needs of the populations they serve:
Mandates vs. Flexibility: OPWDD’s decision to discontinue sheltered workshops reflects a clear policy mandate to eliminate segregated employment settings. In contrast, OMH offers a more flexible framework, understanding that the journey to employment for individuals with mental health conditions can take many forms and should be tailored to the person’s individual recovery path.
Focus on Fair Wages: OPWDD’s shift away from sheltered workshops was driven in part by concerns over subminimum wages. OMH, by contrast, does not face the same federal mandate but focuses instead on helping individuals find competitive employment that is meaningful and aligns with their personal goals.
Work as Part of Recovery: OMH sees employment as a critical part of the recovery process for individuals with mental health conditions, but it recognizes that not everyone is ready for full-time, competitive employment immediately. OMH’s employment services are designed to meet people where they are, whether they are looking for part-time work, education, or vocational training.
Moving Forward: Supporting Inclusive Employment for All
As both OPWDD and OMH continue to evolve their employment services, one thing remains clear: the commitment to supporting individuals with disabilities and mental health conditions in finding meaningful work is stronger than ever. While OPWDD’s discontinuation of sheltered workshops represents a bold move toward integration, OMH’s more flexible approach offers a valuable model for supporting individuals on their own unique paths to employment and recovery.
For those navigating these transitions, it’s crucial to stay informed about the resources and programs available. Whether you are an individual with a developmental disability seeking community-based employment through OPWDD, or someone with a mental health condition working toward vocational goals through OMH, the path to employment is full of opportunities for growth, empowerment, and inclusion.
At Mental Health Affairs, we remain committed to tracking these developments and advocating for employment policies that prioritize fairness, inclusion, and personal empowerment for all.
Author Info:
Max E. Guttman
Max E. Guttman is the owner of Mindful Living LCSW, PLLC, a private mental health practice in Yonkers, New York.
