Fedcap Rehabilitation Services
Corporate brand
UnclaimedFedcap Rehabilitation Services is a New York City-based nonprofit organization that provides vocational rehabilitation, employment services, training, and related support for people facing disabilities and other barriers to work.
Last updated August 26, 2026
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Overview
Fedcap Rehabilitation Services, commonly known as Fedcap, is a nonprofit organization headquartered in Manhattan that works in vocational rehabilitation, workforce development, and employment support. Its principal mission is to help people who face disabilities, mental-health conditions, developmental challenges, veteran reintegration needs, or other employment barriers prepare for, obtain, and retain work. The organization began in 1935 under the name Federation of Crippled and Disabled. It was subsequently known as the Federation of the Handicapped from 1946 and adopted the Fedcap Rehabilitation Services name in 1992. The organization is described as one of the earliest vocational rehabilitation programs for people with disabilities established in the United States. Fedcap’s service model combines assessment, training, placement, and post-placement assistance. Clients may receive vocational evaluations intended to identify suitable career directions, followed by practical instruction in areas such as custodial services, culinary arts, data entry and document imaging, office skills, hospitality, and mailroom or messenger work. The organization’s New York State-licensed business and trade school uses relatively small classes and individualized instruction. After training, participants can receive career counseling, job-placement assistance, and continuing support after starting employment. Employment opportunities have included placements with private-sector employers as well as work performed for or through Fedcap. The organization has operated in New York, New Jersey, and Washington, D.C., with employment opportunities supported in part by public or quasi-public procurement systems, including New York’s Preferred Source Program, New Jersey ACCSES, and the federal AbilityOne Program. Fedcap’s activities extend beyond conventional vocational instruction. Its programs have included a licensed home-health-care agency, Chelton Loft, a clubhouse for adults living with severe and persistent mental illness, a partial-care mental-health program for adults with developmental disabilities and mental illness, a youth program for young adults entering the workforce, and a veterans program supporting the transition from military to civilian employment. The organization has also participated in employment-service contracting outside the United States. In 2020, Ontario’s provincial government selected a consortium led by Fedcap to manage employment services in the Hamilton-Niagara prototype region as part of a broader reform and transfer of employment-service administration to external service-system managers. That role generated criticism from Ontario’s opposition New Democratic Party and regional legislators, who raised concerns about privatization, performance-linked contracting, consultation, and the risk that difficult-to-place clients could receive inadequate support. Fedcap has received recognition including a Rehabilitation Program of Distinction from the National Rehabilitation Association and a National Award for Community Outreach at an NISH National Conference. At the same time, its labor practices have attracted legal and regulatory scrutiny. A 2018 U.S. Department of Labor investigation identified alleged violations at 17 federal facilities in New York and New Jersey, and Fedcap agreed to pay approximately $2.8 million to more than 400 workers. A separate 2021 wage-related class action brought by a worker in Fedcap’s job-placement program was resolved in 2023 through an agreement creating an $850,000 settlement fund for approximately 4,000 workers.
History
Fedcap Rehabilitation Services was established in New York in 1935 as the Federation of Crippled and Disabled. Its creation placed the organization among the early American initiatives designed to address the vocational needs of people with disabilities. Rather than treating rehabilitation solely as a medical issue, its work connected assessment, occupational preparation, and access to employment. In 1946, the organization changed its name to the Federation of the Handicapped. Over subsequent decades it developed a broader service model combining vocational training with counseling, placement, and workplace support. The organization’s programs came to cover a range of practical occupational fields, including custodial work, culinary arts, data entry, document imaging, office administration, hospitality, and mailroom or messenger services. Fedcap operates a New York State-licensed business and trade school. Its training model has emphasized small classes and individualized attention, followed by career counseling and assistance finding work. Support may continue after placement so that participants can adapt to workplace requirements and sustain employment. The organization has served clients in New York and expanded employment-related activity into New Jersey and Washington, D.C. Some placements have been supported through public procurement and disability-employment programs, including New York’s Preferred Source Program, New Jersey ACCSES, and the federal AbilityOne Program. In 1992, the organization adopted the name Fedcap Rehabilitation Services. Under that identity, its activities extended beyond trade instruction. Programs described for the organization include a licensed home-health-care agency; Chelton Loft, a clubhouse serving adults with severe and persistent mental illness; a partial-care mental-health program for adults with developmental disabilities and mental illness; a youth program for young adults transitioning into the workforce; and a veterans program focused on the move from military service to civilian employment. Fedcap has received sector recognition, including a Rehabilitation Program of Distinction from the National Rehabilitation Association and a National Award for Community Outreach presented at an NISH National Conference. Its public-service role has also brought it into policy debates. In 2020, Ontario included a Fedcap-led consortium among the organizations selected to manage a Hamilton-Niagara employment-services prototype as the province restructured how employment services were administered. Critics, particularly Ontario’s New Democratic Party and some regional legislators, argued that contracting out services and tying compensation to employment outcomes could disadvantage people with more complex needs, reduce service quality, or encourage unsuitable placements. The organization has faced labor-related criticism and legal proceedings. A U.S. Department of Labor investigation reported violations of federal service-contract wage and benefit requirements at 17 facilities served by Fedcap in New York and New Jersey. The matter was resolved with an agreement to pay approximately $2.8 million to more than 400 workers. In a separate case, a 2021 class-action complaint alleged wage theft in Fedcap’s job-placement program. The litigation concluded in 2023 with an agreement to create an $850,000 fund for roughly 4,000 workers. These episodes form an important part of the organization’s recent public record, alongside its long-running rehabilitation and employment mission.
- 2023
Wage-related class action resolved
[1]A class action filed by a worker in Fedcap’s job-placement program was resolved through an agreement establishing an $850,000 settlement fund for approximately 4,000 workers.
- 2020
Selected for Ontario employment-services prototype
[1]A consortium led by Fedcap was selected to manage the Hamilton-Niagara region in Ontario’s prototype reform of employment services.
- 2018
Federal wage and benefit compliance settlement
[1]Following a Department of Labor investigation into work at 17 federal facilities, Fedcap agreed to pay approximately $2.8 million to more than 400 workers.
- 1992
Adopted the Fedcap Rehabilitation Services name
[1]The organization changed its name to Fedcap Rehabilitation Services, the identity associated with its current brand.
- 1946
Renamed Federation of the Handicapped
[1]The organization adopted the name Federation of the Handicapped as its rehabilitation and employment work continued.
- 1935
Organization established
[1]The organization was founded in New York as the Federation of Crippled and Disabled to provide vocational rehabilitation and employment-related assistance to people with disabilities.
Products and positioning
A nonprofit vocational-rehabilitation and workforce-development provider focused on people with disabilities and other significant barriers to employment. Fedcap positions its services around individualized assessment, practical occupational training, employer placement, and continued support after hiring.
Rehabilitation service
Vocational evaluation and counseling
Fedcap assesses clients’ abilities, interests, and employment barriers to help identify realistic career directions. Evaluations are paired with counseling and planning intended to connect an individual’s capabilities with training options and prospective occupations.
Vocational education
Business and trade school training
The organization’s New York State-licensed school provides practical instruction in fields including custodial services, culinary arts, data entry and document imaging, office skills, hospitality, and mailroom or messenger work. The program is characterized by small classes and individualized instructor attention.
Employment service
Job placement and on-the-job support
After training, clients can receive career counseling, help locating employment, and continuing support after hiring. Placements may be with private employers or through Fedcap-related work supported by public disability-employment and preferred-source procurement programs.
Behavioral health service
Mental-health and community support programs
Fedcap has operated services including Chelton Loft, a clubhouse for adults with severe and persistent mental illness, and a partial-care program for adults with developmental disabilities and mental illness.
Workforce transition service
Youth and veterans employment programs
The organization has provided targeted workforce-transition support for young adults entering employment and veterans moving from military service into civilian careers.
Home health care
Home-health-care agency
Fedcap has also operated a licensed home-health-care agency as part of its broader portfolio of human-services programs.
Controversies
2023
Settlement of wage-theft litigation
The wage-related class action was settled through an agreement to fund approximately $850,000 for roughly 4,000 workers.
2021
Wage-theft class action
A worker in Fedcap’s job-placement program filed a class-action lawsuit alleging that the organization had withheld wages from her and other workers.
2020
Criticism of Ontario employment-services privatization
Fedcap’s selection to lead the Hamilton-Niagara service-system manager consortium drew criticism from Ontario’s New Democratic Party and regional legislators. Critics argued that outcome-based contracting could weaken public services, exclude people with complex needs, or encourage unsuitable or premature job placements.
2018
Federal wage and benefit violations
The U.S. Department of Labor found reported violations of the McNamara-O'Hara Service Contract Act at 17 federal facilities served by Fedcap in New York and New Jersey. The issues included alleged improper payroll deductions and failure to provide required benefits. Fedcap agreed to pay approximately $2.8 million to more than 400 workers.
Brand decisions
2020
Participation in Ontario’s employment-services reformStrategyBackground
Ontario created prototype regions in a plan to reform and externally manage employment services, with service-system managers intended to identify efficiencies and improve labor-market responsiveness.
Action taken
Fedcap led the consortium selected to manage the Hamilton-Niagara prototype region.
Aftermath
The selection prompted political criticism concerning privatization, limited stakeholder consultation, performance-based payment, and the treatment of clients with more difficult employment barriers.
1992
Adoption of the Fedcap Rehabilitation Services nameStrategyBackground
The organization had previously operated as the Federation of Crippled and Disabled and the Federation of the Handicapped.
Action taken
It changed its organizational name to Fedcap Rehabilitation Services.
Aftermath
The new name became the organization’s continuing public identity as it maintained a focus on rehabilitation, training, and employment services.
Sources1 sources
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