(A) When an individual receives remuneration for services performed in a sheltered workshop, it must be determined whether the services are provided for rehabilitative/therapeutic purposes or as an employee and whether the remuneration received is earned or unearned income. Two principles apply to earnings for services performed in a sheltered workshop.
(1) If services are performed for rehabilitation or therapeutic purposes and the intent of supervision and control over the individual is to rehabilitate him and prepare him for placement in outside employment, an employer/employee relationship does not exist. The remuneration realized from the services performed is considered unearned income.
(2) If services are performed as an employee, an employer/employee relationship exists. The remuneration realized from the services performed is considered earned income.
(B) The CDJFS must evaluate each individual's case to decide whether an employer/employee relationship exists. If deductions from gross earnings are made for federal, state, or local taxes, it shall be assumed the individual is an employee. His remuneration is considered earned income.
(C) When an individual is not participating in a rehabilitation program designed to place him in outside employment, the CDJFS shall determine if a rehabilitation plan exists. The purpose of the plan should be to rehabilitate the individual or train him for employment and should have a tentative ending date. If these elements do not exist in the plan, there may be an employer/employee relationship.
(D) An individual who has completed a training program but is still in the sheltered workshop due to the unavailability for outside employment is not considered participating in a rehabilitation program. He is actually an employee and payment for services performed is earned income.
Eff 9-3-77; 12-31-77;
3-1-79; 10-1-79; 1-3-80; 10-1-88 (Emer.); 12-20-88; 10-1-89 (Emer.); 12-16-89;
5-1-91 (Emer.); 6-17-91; 9-1-94; 10-1-02
Rule promulgated under: RC 111.15
Rule authorized by: RC 5111.01, 5111.011
Rule amplifies: RC 5111.01, 5111.011
R.C. 119.032 review dates: 5/20/2002 and 10/01/2007