06 Employed Status
Revised: 08/03
06-02 Options for Employment Outcomes
06-02-01 Competitive Employment
Competitive employment means work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting; and for which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not disabled.
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06-02-02 Non-competitive Employment
Employment outcomes can be met which are not considered to be competitive employment. These outcomes would include work which is done within an integrated setting but for which an individual is not compensated at or above the minimum wage. Examples may include unpaid family workers, homemakers and for supported employment purposes, individuals who are employed at FLSA sub-minimum wage but are working towards minimum wage. Self-employed cases in which the participants are closed with earnings below the minimum wage are considered non-competitive employment.
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06-02-02-01 Homemakers
Homemaking involves household management and a significant contribution to maintaining a home. It is not measured solely by the participant's performance of selected housekeeping tasks. Homemaking activities can include responsibility for the following:
Financial management including budgeting, paying debts, keeping records, filing taxes.
Meals and nutrition including planning meals, cooking, purchasing or food growing.
Safety and health including maintaining a safe environment, making and keeping appointments for routine or emergency medical or dental needs of self and others, keeping medical records.
Clothing including laundering, ironing, mending, sewing, purchasing clothes.
Maintenance including cleaning and repairing the home or home furnishings purchasing household supplies, furniture, etc.
Care of others including attending to the basic needs of others for care and supervision.
The responsibility for management and maintenance of the home may be shared with another person as long as the participant makes a significant contribution. Homemaking can also include individuals living alone that are performing homemaking activities.
When an employment goal of homemaker is identified, the IPE must reflect:
That the conditions stated above are met.
That VR services will have a direct impact on the participant's ability to perform homemaking duties which the participant could not perform without the provision of VR services.
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06-02-02-02 Unpaid Family Workers and Home Based Employment
Unpaid or family work is work performed in a family business, farm, or ranch for which the participant receives room and board in lieu of all or most of the wages due. Home based employment is work performed at home either under contract or for piece rate.
Unpaid farm or family work or home-based employment may be specified as the employment goal when:
This is determined to be the most suitable type of employment for the participant and;
Wages or in-kind support is commensurate with work performed.
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06-02-03 Exclusions from Employment Outcomes
Extended employment (previously known as sheltered employment) can be provided as a service leading toward an employment outcome, but does not meet the requirements for a successful closure.
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06-02-04 Self Employment
Self-employment is a vocational option which may be considered when the counselor and participant have explored potential options and determined that self-employment is the best course of action leading to a successful employment outcome. This option recognizes that self-employment is more prevalent in rural areas and that people with a disability tend to be self-employed at rates higher than individuals without a disability. The decision to support a self employment plan will be based upon a variety of factors including but not limited to; participant choice, total start-up costs, viability of the business plan, potential for other financial sources and counselor judgment.
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06-02-04-01 Scope
When it is determined that self employment is the most viable option leading to employment, the following services may be provided to achieve this goal:
Assistance in preparing a business plan;
Assistance in preparing loan applications or other business related documents;
Assistance in identifying and obtaining available similar benefits.
Provision of cost services such as adaptive equipment needed to operate the business, initial advertising costs, initial business insurance premiums and other start up expenses, purchase of initial business stock, tools, licenses and supplies.
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06-02-04-02 Evaluation Criteria
Participants requesting vocational rehabilitation services in support of self-employment shall possess or be capable of meeting the following criteria:
Formal training in the occupational area being considered for self- employment; or
A minimum of one year paid work experience in the occupational area being considered for self-employment; and
A minimum of one semester of formal education or 6 months of work experience and or specialized training in at least two of the following:
Training, experience and educational requirements may be waived by the program manager where there is sufficient and compelling evidence that the participant has the capacity and skills to operate and manage a small business enterprise such as a cottage industry or home based operation. Factors to consider:
Physical and mental capacities: Analysis of actual work requirements considering the participants' physical and mental abilities; work history; availability of family member or others to provide assistance.
Marketing - formal or informal market analysis prior to starting the business; participants' ability to carry out marketing activities as necessary to maintain the business.
Sound revenue and expense projections prior to starting the business (See Business Plan Requirements).
Record Keeping - ability to keep accurate records, knowledge of tax and other State and Federal reporting requirement
Inventory and Supplies - projecting the need for initial stock, equipment and supplies, maintaining inventory, purchasing, etc.
Overall management skills; organization and planning; self-motivation and independence.
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06-02-04-03 Business Plan
A Business Plan must be developed to determine the feasibility of self-employment as a vocational goal as well as to determine the basis for the IPE or amendment. Providing that the conditions specified exist, the participant shall complete a proposed self-employment plan that shall include all of the following elements:
a detailed description of the proposed business
products and services to be offered
form of business such as sole proprietorship
detailed marketing plan
financial forecast
itemized list of business expenses
list of assets that the participant will contribute to the business
services participant expects the agency to provide.
Agency's small business forms (PPI-03) shall be completed and may be utilized as a tool for exploration and initial assessment of the feasibility of a small business plan or if completed sufficiently, may stand as the proposed business plan. Use of Agency's business forms are not required if a comprehensive business plan, which includes all required components of forms, is avilable.
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06-02-04-04 Consultation
In all cases, unless waived by the Program Manager, an independent business consultant with the education, training, work experience and expertise to provide this service shall review the Business Plan. Consultation may be obtained at any point to determine:
whether or not the participant possesses the required training, work experience or business courses;
the thoroughness and soundness of the participants business plan;
the sufficiency of the participants skills and resources to succeed in the proposed business;
the likelihood that the proposed market area will support the business;
the feasibility of the new business producing a profit sufficient to enable the participant to be self-supporting by the end of the first year of operation.
The small business consultant shall prepare a written report and submit to the counselor with his/her recommendation. If the Small Business Consultant concludes that the self-employment proposal is not likely to succeed, the reason shall be set forth in a written report.
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06-02-04-05 Participant Responsibilities
Complete a "Start Up Small Business ", "Established Small Business" and/or "Forecast of Annual Income and Expenses" forms as part of the department's evaluation process.
Participate in the evaluation and analysis of the proposed self-employment by appropriate public or private entities recommended by the Small Business Consultant.
Make available to the Small Business Consultant and/or the rehabilitation counselor pertinent financial records necessary to properly evaluate self-employment, e.g. profit and loss statements.
If the participant's proposed plan for self-employment is implemented, then the participant shall file a profit and loss statement each month the business is in operation or until case is closed.
Maintain routine contact with the counselor. Routine contact means a minimum of one personal contact per month for the duration of the plan.
Fully cooperate with an auditor or other professional consultant, as appropriate, to assess and resolve financial or technical business problems that endanger the success of a business.
Failure on the part of the participant to fully cooperate with his/her counselor will result in termination of the self-employment plan. If the participant disagrees, the counselor shall inform the participant of the right to a supervisory or Administrative Review or Fair Hearing.
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06-02-04-06 Counselor Responsibilities
Prior to developing an IPE or Amendment for a self-employment program the counselor shall:
Forward the participant's completed small business form(s) to the Small Business Consultant for an evaluation and written report.
If the proposed business is recommended by the Small Business Consultant and the counselor concurs, the counselor prepares an IPE with written justification for approval by the Area Supervisor which includes:
A description of the self-employment objective.
Statement that the participant possesses all of the required education, training and work experience, or equivalent education, training or work experience, unless waived by the Program Manager.
An analysis of the self-employment proposal and likelihood that the business will be financially successful.
Listing of services needed for the IPE, including the participant's resources and anticipated contributions.
Counselors may, as part of the preliminary and/or ongoing evaluation:
Obtain a credit check for the participant if the participant intends to apply for a business loan or expects to purchase goods on credit
Arrange for an audit of the participant's business records when the participant and counselor agree that professional assistance is needed to assess and resolve financial and record keeping problems of the business.
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Arrange for expert consultation to assist the participant for a specific purpose, e.g. to improve a marketing or advertising plan, etc.
Note: Small Business Consultants, with appropriate expertise, may be hired to provide services in (ii) and (iii) above if no comparable services are available.
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06-02-04-07 Business Consultant's Responsibilities
The Small Business Consultant will be a paid consultant. Area Manager's will evaluate resumes, interview consultants and negotiate fees if necessary. Consultants should have a college degree, preferably with a major in business administration or closely related field or extensive experience in the proposed area of self-employment. They must have experience in evaluating, writing and implementing business plans.
The Small Business Consultant shall review the appropriate small business form(s) to determine:
If the participant possesses the required training, work experience or business courses.
The thoroughness and soundness of the participant's business plan.
The sufficiency of the participant's skills and resources to succeed in the proposed business.
The likelihood that the proposed market area will support the business.
Feasibility of a new business producing increasing net profits by the end of the last quarter of the first year of operation. Typically, the estimated net monthly income (profit) at the end of the first year of business operation shall be sufficient to meet the participant's monthly living needs when combined with other income available.
For established business, the consultant will assess the likelihood of Departmental services assisting the participant to continue or regain operating a business which will generate sufficient income to meet the participant's needs when combined with other available income.
The Small Business Consultant may, if appropriate, arrange to interview the participant to obtain further information to more thoroughly assess the business plan or the participant's qualifications.
The Small Business consultant shall prepare a written report. If recommendations are made to the counselor for further work, these should be followed by the counselor, e.g. participant to seek technical assistance from a Service Corps of Retired Executives (SCORE) representative, or attend specific workshops, seminars or courses.
If the small Business consultant concludes that the self-employment proposal is not likely to succeed, the reasons shall be set forth in a written report. If the counselor concurs with the Small Business Consultant, the participant will be informed of the reasons why the division will not support the proposed self-employment, in writing, including the participant's right to supervisor and administrative review and right to a fair hearing before the Agency Director.
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06-02-04-08 Financial Needs Test
The Agency's policy is to provide eligible participants with vocational rehabilitation services leading to competitive employment opportunities including self employment in an expeditious yet cost effective manner. The financial needs test must be applied to determine to what extent the participant can participate in the costs of their rehabilitation program. In all cases the counselor should assist the participant to access or leverage funding from other sources such as SBA, ACCION, WESTCORP, or private lending agents.
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06-02-05 Guidelines for Successful Self Employment Closures
The following guidelines will be utilized by the counselor to determine that the participant has achieved a successful employment outcome:
The provision of services under the individual's IPE has contributed to the outcome.
The employment outcome is consistent with the individuals strengths, resources, priorities, abilities, interest, and informed choice.
The employment outcome is in the most integrated setting possible.
The individual has maintained employment for at least 90 days; and
At the end of the appropriate time period, the participant and counselor consider the employment outcome to be satisfactory and agree that the individual is performing well on the job. The evaluation should take into account the following:
Participant is meeting the timeline and expectations addressed in the business plan.
Participant is increasing amount of financial equity, including sweat equity.
There is a personal commitment to the business through active involvement and reinvestment in the business.
Increasing level of take home pay and a sustained cash flow.
Decreasing reliance on social service benefits and increased level of independence.
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06-02-06 Procedures to Move into Employment Status
Complete the AWARE "Employment" datapage. See AWAREHelp.
Select the type of employment, i.e. competitive, homemaker, unpaid family worker, self employment.
Documentation and completion of the datapage automatically begins the 90-day tracking of employment for case closure. The start date can be entered for any date on or after the signature/approval of the original Individualized Plan for Employment.
Follow the participant's progress to ensure that he/she is making a suitable vocational adjustment. This may involve face-to-face visits, visiting the worksite, and/or telephone conversations.
If the employment goal changes while the participant is in employment status, the IPE must be amended to reflect this prior to proceeding with case closure.
Proceed with case closure after 90 days if appropriate, or move out of employment status back into services status if the employment is unsuitable.
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06-02-07 Continuous Employment
While in employment status, a participant can move from one job to another suitable job without interruption in the 90-day tracking for closure purposes. A change in job may be considered continuous when:
the change in employment occurs with limited interruption in work activity (limited work activity is defined as less than one month), and
the new job is in the same or a closely related field as the previous job. This is required because guidance and counseling is focused on the participant's vocational adjustment to a specific employment goal. A significant change in employment goal would require addressing adjustment issues as they relate to the new goal. For example, if a participant moves from a cashier position to a clerical position, this would be considered a closely related field and meet this criteria for continuous employment. In another example, if a participant went from a nurse aide position to a construction laborer job, this would not be considered a closely related field and therefore not meet this criteria for continuous employment.
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06-02-08 Moving out of Employment Status
If it is determined that the participant is no longer suitably employed, he or she should be moved out of employment status. To initiate this action in AWARE, complete the "end date" field in the "Employment" datapage. This will move the participant out of employment status and place them back in service status. See AWAREHelp.
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