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Hubbard County Developmental Achievement Center garners attention from PBS, author

People with severe intellectual and developmental disabilities are advocating for the preservation of center-based work, like the DAC.

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The Hubbard County Developmental Achievement Center (DAC) celebrated its 50th anniversary in September. Laura Kovacovich poses with her friends and fellow DAC workers.
Contributed/Dawn Kovacovich

As the Hubbard County Developmental Achievement Center (DAC) celebrates its 50th anniversary this year, it’s become the subject of a PBS NewsHour episode and a nonfiction book.

Issues facing the DAC and its clients with severe intellectual and developmental disabilities (I/DD) have both state and national implications.

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As some disability advocates and policymakers are pushing for the integration of all people with disabilities into a competitive workforce, there are families and participants fighting to preserve their center-based employment.

Efforts to eliminate 14c

During the July 2021 special session, language was slipped into the Minnesota Health and Human Services omnibus bill creating a task force to eliminate subminimum wage law.

The legislation directed the group to “develop a plan and make recommendations to phase out payment of subminimum wages to people with disabilities on or before Aug. 1, 2025.”

Many disability service providers, like the DAC, hold special certificates from the U.S. Department of Labor that exempt them from the federal minimum wage and allow them to pay workers with disabilities based on productivity, instead of a fixed hourly rate.

Specifically known as Section 14c of the Fair Labor Standards Act, it is a highly regulated, licensed program, explains Dawn Kovacovich.

She is a retired special education teacher and a member of the DAC board of directors.

Her 31-year-old daughter, Laura, has multiple severe I/DD.

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In 2022, Dawn co-founded A-Team Minnesota in response to the new Minnesota task force. The A-Team Minnesota is part of a nationwide, nonprofit, grassroots network that advocates for people with disabilities.

The case for accommodated employment

“Chasing the Intact Mind: How the Severely Autistic and Intellectually DIsabled Were Left out of the Debates that Affect Them Most” was published on Oct. 3.

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A chapter in "Chasing the Intact Mind" highlights the Hubbard County Development Achievement Center's successes.

Written by Dr. Amy F.S. Lutz, one of the chapters highlights the success of the DAC.

Lutz is vice president of the National Council on Severe Autism. The book is the product of her doctorate thesis.

In January 2021, Lutz interviewed DAC Executive Director Laura Johnson and the Kovacoviches.

Dawn calls it “one of the first publications ever that clearly articulates the need for accommodated employment choices and the rationale behind the 14c commensurate wage law.”

According to Lutz, “Minnesota has the largest number of 14c certificates in the country; 6,000 adults earn a subminimum wage at programs operated by nonprofit agencies across the state.”

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The DAC serves about 70 clients with a range of cognitive impairments and psychiatric disorders.

DAC participants can work at the DAC workshop where items that are made are sold in the stores. They can choose to work at Bearly Used Thrift Store or The Salvage Depot or in community jobs.

Alternatively, they can pursue other activities, like theater, crafts, exercise and more.

Lutz writes, “Like all the facilities I visited, the DAC offers multiple program options; fewer than half of their participants hold subminimum wage jobs. And some clients make minimum wage or even higher, depending on the work they’re doing at any particular moment.”

“These programs are valued. They’re desperately wanted by the people they serve and it’s the people who aren’t even affected by it that want it shut down,” Dawn said.

Her daughter, for instance, has worked at the DAC since 2012. Her main job at the thrift store is to price and shelf items.

Laura can get self-injurious, aggressive or even destructive when she’s anxious or upset, Dawn said. DAC staff know exactly what to do when there are meltdowns, she adds, and that cannot be replicated at businesses. She argues it’s a liability for employers and puts people like Laura in a vulnerable situation.

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PBS visits Park Rapids

In September, Judy Woodruff and the PBS NewsHour team visited the DAC. For two years, they’ve been producing a special assignment entitled “Disability Reframed.”

The PBS crew interviewed the Kovacoviches and State Sen. Paul Utke (R-Park Rapids), among others. The aired on Oct. 5.

Dawn was disappointed in the segment, saying they failed to share the severity of her daughter’s disabilities “that prevent her from ever safely working in a competitive setting without specially trained supervision.”

14c programs, Dawn explains, are designed to serve this small, severely I/DD population.

The Government Accountability Office has determined that over 90% of individuals who utilize 14c programs have I/DD, she said.

Over 98% of 14c participants in Minnesota “have indicated they don’t want to change their jobs.”

“It isn’t about wages. It’s about choice,” Dawn emphasized.

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Typically, individuals with I/DD qualify for Medicaid-funded waivers to cover living expenses and caregiving.

Adapted wages give these individuals the choice to work in a safe, group setting at their individual pace, she said.

Utke’s legislative outlook

In February 2023, the task force presented its recommendations to the Minnesota Legislature.

The task force is not making recommendations on whether Minnesota should end the use of subminimum wages.

State Sen. Paul Utke (R-Park Rapids) said, “The one good thing that did happen this past session was that ‘eliminate’ was removed from the study directive. The study is still ongoing at this time, but the committee is no longer directed to draft a plan to eliminate the use of 14c certificates.”

Instead, the task force offered suggestions to ensure a smooth transition if subminimum wages are phased out by state or federal policy changes.

Utke said, “I had a good amendment last session that would have saved the 14c certificates and was adopted, but in the end most of it was pulled out in conference committee.”

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Utke remains optimistic about the upcoming legislative session.

“At this time, I have all of my caucus and, at minimum, the Democrat chair of the committee supporting the continued use of the 14c certificates.”

Utke said he “will continue to do everything I can to stop and remove anything that would repeal the 14c certificates.”

Minnesotans, like Laura, are asking him and other supporters to protect their jobs, he said.

“We have a great example here in Park Rapids with the Hubbard County DAC. I trust them and others like them across our state to do what is best for the clients they serve.”

Utke points out that many legislators have never visited providers like the DAC, “yet will vote against the 14c certificates with very limited actual knowledge of what they do.

“I know that the task force report will come up, but I hope that common sense prevails and that the 14c certificates will continue to be available for use.”

Greater Minnesota vs. metro

In the book, Lutz points out that “a dearth of appropriate services” and “logistical issues” present unique challenges to northern Minnesota’s nonprofit agencies compared to larger, Twin Cities-based service providers.

Individuals with I/DD are supposed to enter the competitive workforce, but Johnson notes that half of the stores in Park Rapids are closed during the winter, and even shops that are open may only have one full-time employee.

The DAC is not going to close, Johnson reiterates.

The nonprofit is uniquely positioned because of Bearly Used Thrift Store, its most profitable venture for its disabled employees.

She said, “The HCDAC Board has a strong strategic plan that includes strategies to allow us to continue employing our client employees. Our goal is to ensure that we provide options that include a wide range of opportunities for social engagement and choice of employment options. The management and board are committed to the people we serve and ensuring financial viability for all our programming.”

Shannon Geisen is editor of the Park Rapids Enterprise. She can be reached at sgeisen@parkrapidsenterprise.com.
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