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NYSID News Blog

May 28, 2015

NYSID Ensures Continued Employment in Wake of FEGS’ Closure

Category: General — NYSID @ 5:08 pm

NYSID has ensured the continuation of services and the retention of employment for hundreds of workers with disabilities on dozens of Preferred Source contracts across the New York City Metropolitan area, in the wake of a fiscal crisis that forced the recent closure of Federation Employment & Guidance Service (FEGS) in New York City.

New York Nonprofit Media and The Saratogian have each publicized our story.

In January 2015, with a deficit of $19.4 million, FEGS, a non-profit health and human services organization founded in 1934, announced that it was closing operations and subsequently filed for Chapter 11 relief in U.S. Bankruptcy Court. FEGS is a NYSID member agency that performed services on many NYSID contracts under the Preferred Source Program.

Upon learning of the FEGS shutdown, NYSID has worked diligently to successfully transition all contracts previously performed by FEGS to other NYSID member agencies. All of the individuals with disabilities employed on these contracts retained their positions.

These contracts included 232 employees, 10 NYSID member agencies and 11 corporate partners, performing such services as: janitorial and grounds maintenance; document destruction; laundry; landscaping; windows; mail; miscellaneous; inventory; and reproduction. No services were interrupted, and no workers lost their jobs through the transfer of FEGS contracts.

“Although NYSID is disappointed to see the closure of a longtime member agency such as FEGS, we are proud to have maintained employment for hundreds of New Yorkers with disabilities on dozens of Preferred Source contracts,” said Ron Romano, NYSID president & CEO. “These individuals provide incredible examples of how much New York State benefits by having a workforce that is inclusive of persons with disabilities.”


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