As part of a series of topic papers assessing federal laws and programs affecting persons with disabilities, this paper focuses on employment programs and initiatives. Described are (1) the transition model of the Office of Special Education and Rehabilitative Services (OSERS), which emphasizes a solid educational foundation and adequate community-based employment opportunities, and (2) the financial support provided by OSERS for development of transitional services. The supported work model of OSERS encourages local development of work opportunities in a variety of settings, through training, supervision, and/or transportation, and calls for the provision of whatever support is needed to maintain that employment. Legislation directly affecting transition and supported work are described, and several gaps in programs and legislation are identified. Placement initiatives which enable persons with disabilities to enter or reenter the labor market are discussed, including the Rehabilitation Act of 1973, the Job Training Partnership Act, disabled veterans programs, President's Committee on Employment of the Handicapped, and initiatives by nonprofit organizations and the private sector. Eight legislative changes are recommended to increase employment among people with disabilities, focusing on transition from school to work, sheltered employment, private sector initiatives, job training, job development, and placement. Five pages of references are provided. (JDD)