The problem of designing of a haptics-enabled teleoperated rehabilitation system in the presence of communication delays is addressed. In a teleoperated rehabilitation system, communication delays introduce phase shift which may result in the task inversion phenomenon. To overcome the task inversion, a new type of projection-based force reflection algorithm is proposed which is suitable for assistive/resistive therapy in the presence of irregular communication delays. Additionally, algorithms for augmented therapy are introduced which combine the projection-based force reflection with a delay-free local virtual therapist. A small-gain design is developed which guarantees stability of the proposed schemes for both assistive and resistive modes of the therapy. Simulations and experimental results are presented which confirm the improvement achieved by the proposed methods.