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Contested overhaul of 'sheltered workshops' draws split testimony; advocates warn expansion could preserve subminimum wages

New Jersey Senate Labor Committee · March 3, 2025
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Summary

S4004 would modernize New Jersey's 1971 sheltered-workshop statute (renaming it 'extended employment'), change eligibility standards, and codify funding and oversight adjustments. Providers and membership groups supported the bill as necessary modernization; Disability Rights New Jersey, parents and advocacy groups opposed key changes that they say would expand segregated work and lessen protections.

Senate Bill 4004 proposes to rename and modernize the 1971 Sheltered Workshop Act as the Extended Employment Act, change eligibility standards from "severe" to "significant" disabilities, clarify the Division of Vocational Rehabilitation Services’ responsibilities, set baseline funding tied to CPI adjustments and allow programmatic flexibility for providers.

Access New Jersey and several providers urged the committee to modernize the law, arguing the changes provide continuity for participants and help agencies maintain services. Jacob Kaplan, director of advocacy and government affairs at Access New Jersey, told the committee the statute has not been updated since 1971 and said the bill is necessary to preserve programs that provide work…

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