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Contested overhaul of 'sheltered workshops' draws split testimony; advocates warn expansion could preserve subminimum wages
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 and stability for people with significant disabilities.
Lisa Montalbano (Employment Horizons) and Karen Elliott (Occupational Training Center of Burlington County) described the programs as offering "low-pressure, supportive" employment options and said the bill clarifies referral and funding responsibilities while protecting program participants’ choice.
By contrast, Disability Rights New Jersey and several parent advocates said the bill weakens protections, broadens eligibility in ways that would funnel more people into segregated settings, and risks expanding the scope of 14(c) subminimum-wage certificates. Susan Head, an advocate with Disability Rights New Jersey, presented data showing low transition rates from sheltered work to competitive integrated employment and warned that changing eligibility to "significant" disabilities and removing vocational assessment requirements could reduce opportunities for community employment.
A parent, Joan McGee, described her daughter’s experience in a sheltered workshop, saying the facility paid subminimum wages and limited transition opportunities; she urged the legislature to reconsider policies that she said "warehouse" people with disabilities.
Advocates also objected to provisions requiring consultation with Access New Jersey on major policy and leadership changes, arguing that Access New Jersey is a provider-membership trade group with potential conflicts of interest. Disability Rights New Jersey recommended broader input through the State Rehabilitation Council and more robust oversight.
Provider groups said the bill preserves choice and would not prevent individuals from pursuing community employment; they argued that funding certainty and clearer DVR responsibilities are needed to keep programs running. Several providers and membership organizations asked the committee to move the bill so agencies could continue providing services and receive necessary funding updates tied to CPI adjustments.
The panel heard extensive pro and con testimony and did not move S4004 at this hearing. Sponsors and committee members were urged to continue stakeholder dialogue and consider targeted amendments addressing oversight, eligibility safeguards and transitions to competitive employment.
