Sunshine Services, a Knoxville nonprofit that supports people with intellectual and developmental disabilities, is shutting its doors, with plans to end operations on Feb. 27. In a Feb. 3 letter, the organization told supporters that its board voted to close after what it described as a new direction and requirements from the U.S. Department of Labor. The move will pause or end day programs, supported employment, and other services at the North Central Street campus, leaving families a tight window to find alternatives.
As reported by WBIR, the letter cited “recent direction and requirements from the U.S. Department of Labor” as the reason for the shutdown and confirmed Feb. 27 as the last day of operations. WBIR noted that Sunshine Services said its priority “remains the people it supports” and that staff teams will work directly with each person to plan next steps. WBIR published its coverage on Feb. 5.
Sunshine Services operates early intervention, day and recreation programs, residential supports, and a social-enterprise employment arm known as Sunshine Industries. The agency’s website says it serves people across Knox, Blount, and Jefferson counties from its campus at 3000 N. Central Street. Sunshine’s on-site packaging work and supported-employment programs have long been a local source of jobs and training for adults with intellectual and developmental disabilities.
What’s behind the decision?
Federal labor policy has been shifting. In December 2024, the Department of Labor published a proposed rule to phase out Section 14(c) certificates, which allow some workers with disabilities to be paid subminimum wages, and the agency has emphasized stricter documentation and counseling requirements tied to those certificates. Those federal signals, along with longstanding obligations under Section 511 for career counseling and information for workers paid subminimum wages, have pushed many community rehabilitation programs to reevaluate their finances and staffing models. For background on the proposed rule and Section 511 guidance, see the U.S. Department of Labor and its Wage and Hour Division…