[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR21.51]

[Page 128-130]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 21--VOCATIONAL REHABILITATION AND EDUCATION--Table of Contents
 
     Subpart A--Vocational Rehabilitation Under 38 U.S.C. Chapter 31
 
Sec. 21.51  Employment handicap.

    (a) Importance of decision. The proper determination of employment 
handicap is a critical decision for rehabilitation planning and program 
accountability. To the extent possible, necessary information shall be 
developed in the course of initial evaluation and the significance of 
the information under paragraphs (d) and (e) of this section for 
determining employment handicap shown in each case.


(Authority: 38 U.S.C. 3101(1), 3102)

    (b) Definition. The term employment handicap means an impairment of 
the veteran's ability to prepare for, obtain, or retain employment 
consistent with

[[Page 129]]

the veteran's abilities, aptitudes, and interests.


(Authority: 38 U.S.C. 3101(1))

    (c) Components of employment handicap. Components of employment 
handicap include:
    (1) Impairment. This term means the restrictions on employability 
caused by:
    (i) The veteran's service and nonservice-connected disabilities;
    (ii) Deficiencies in education and training;
    (iii) Negative attitudes toward the disabled; and
    (iv) Other pertinent factors.
    (2) Service-connected disability. The veteran's service-connected 
disability need not be the sole or primary cause of the employment 
handicap but it must materially contribute to the impairment described 
in paragraph (c)(1) of this section. Therefore its effects must be 
identifiable, measurable, or observable.
    (3) Nonservice-connected disability. This term includes all physical 
and mental disabilities which have not been found to be service-
connected by the Department of Veterans Affairs, including alcoholism 
and drug abuse. The effects of alcoholism and drug abuse are to be 
considered in the same manner as other nonservice-connected disabilities 
in evaluating restrictions on employability. When the manifestations of 
alcoholism, drug abuse or other nonservice-connected disabilities raise 
questions as to the reasonable feasibility of a vocational goal for a 
veteran otherwise entitled to assistance under Chapter 31 such questions 
will be resolved under provisions of Sec. 21.53.
    (4) Consistency with abilities, aptitudes, and interests. The 
following points should be considered to determine if the veteran's 
training and employment are consistent with his or her abilities, 
aptitudes and interests:
    (i) A finding that a veteran is employed in an occupation which is 
consistent with his or her abilities, aptitudes and interests may not be 
made if the occupation does not require reasonably developed skills, 
except under conditions described in paragraphs (e) (2) and (3), of this 
section;
    (ii) The veteran's residual capacities, as well as limitations 
arising from the veteran's service and nonservice-connected disabilities 
are relevant;
    (iii) Evidence of the consistency of interests with training and 
employment may be based on:
    (A) The veteran's statements to a Department of Veterans Affairs 
counseling psychologist during initial evaluation or subsequent 
reevaluation;
    (B) The veteran's history of participation in specific activities; 
or
    (C) Information developed by the Department of Veterans Affairs 
through use of interest inventories.


(Authority: 38 U.S.C. 3102)

    (d) Determining extent of impairment. The extent of the veterans 
impairment shall be assessed through consideration of factors described 
in paragraph (c)(1) of this section:
    (e) Material contribution of service-connected disability to the 
impairment. A finding that the veteran's service-connected disability 
materially contributes to his or her impairment to employment will be 
made by assessing the following factors:
    (1) Preparation for employment. The service-connected condition 
adversely affects the veteran's current ability to prepare for 
employment in one or more fields which would otherwise be consistent 
with the veteran's abilities, aptitudes, and interests. An adverse 
effect is demonstrated when the physical or psychological results of the 
service-connected condition:
    (i) Impair the veteran's ability to train;
    (ii) Prevent or impede access to training facilities; or
    (iii) Diminish the veteran's motivation and ability to mobilize his 
or her energies for education or training.
    (2) Obtaining employment. The service-connected condition places the 
veteran at a competitive disadvantage with similarly circumstanced 
nondisabled persons in obtaining employment. A veteran without 
reasonably developed specific job skills shall be considered to be at a 
competitive disadvantage unless evidence of record shows a history of 
current, stable, continuing employment.

[[Page 130]]

    (3) Retaining employment. The physical or psychological effects of a 
service-connected condition adversely affect the veteran's ability to 
maintain employment which requires reasonably developed skills. This 
criterion is not met if a veteran though lacking reasonably developed 
skills, has a history of continuing, stable employment.


(Authority: 38 U.S.C. 3101(1))

    (f) Determination of employment handicap. The counseling 
psychologist may find the veteran has an employment handicap.
    (1) An employment handicap which entitles the veteran to assistance 
under this program exists when all of the following conditions are met:
    (i) The veteran has an impairment of employability; this includes 
veterans who are qualified for suitable employment, but do not obtain or 
retain such employment for reasons not within their control;
    (ii) The veteran's service-connected disability materially 
contributes to the impairment of employability;
    (iii) The veteran has not overcome the effects of the impairment of 
employability through employment in an occupation consistent with his or 
her pattern of abilities, aptitudes and interests.
    (2) An employment handicap does not exist when any of the following 
conditions is present:
    (i) The veteran's employability is not impaired; this includes 
veterans who are qualified for suitable employment, but do not obtain or 
retain such employment for reasons within their control;
    (ii) The veteran's employability is impaired, but his or her 
service-connected disability does not materially contribute to the 
impairment of employability.
    (iii) The veteran has overcome the effects of the impairment of 
employability through employment in an occupation consistent with his or 
her pattern of abilities, aptitudes and interests, and is successfully 
maintaining such employment.


(Authority: 38 U.S.C. 3102)

    (g) Eligibility for employment assistance. If a veteran is not found 
to have an employment handicap a separate determination of his or her 
eligibility for employment assistance will be made under provisions of 
Sec. 21.47.


(Authority: 38 U.S.C. 3117)

    (h) Responsibility for determinations. The determination of an 
employment handicap and eligibility for employment assistance may only 
be made by a counseling psychologist in the Vocational Rehabilitation 
and Employment Division.


(Authority: 38 U.S.C. 3106(a))

[49 FR 40814, Oct. 18, 1984; 50 FR 9622, Mar. 11, 1985, as amended at 54 
FR 21216, May 17, 1989]