Individual Placement and Support (IPS) is an evidence-based approach to supported employment designed specifically for people with severe mental illness or psychiatric disabilities. It is unclear whether this approach generalizes to adults with less severe mental illnesses. In addition, because IPS is intended for motivated volunteers, it remains unclear whether it is also applicable to individuals with mental illness who have government-imposed obligations to participate in supported employment programs. This study evaluated an IPS enhancement intervention on the Central Coast of New South Wales, Australia, involving 68 adults with a range of different mental illnesses. Thirty-seven of 68 participants had participation obligations as a condition of receiving welfare benefits, and 31 of 68 participants had no such obligations. All participants were tracked for 18 months following program commencement to assess job commencements and 13- and 26-week employment milestones. Usual services enhanced by IPS achieved significantly more job commencements than pre-IPS services. However, those with participation obligations were not less motivated and benefitted as much from the program as those with no participation obligations. The results support the application of evidence-based practices in supported employment to job seekers with more diverse forms of mental illness than the severe mental illnesses. These preliminary results support the generalization of evidence-based practices to policy settings where participation in supported employment is conditional on receiving welfare benefit payments.