[Nfbnet-members-list] NBC Rock Center: Some dis abled workers paid just pennies an hour and it's legal
Lewis, Anil
ALewis at nfb.org
Fri Jun 21 16:00:02 UTC 2013
Some disabled workers paid just pennies an hour and it's legal
By Anna Schecter, Producer, NBC News
One of the nation's best-known charities is
paying disabled workers as little as 22 cents an
hour, thanks to a 75-year-old legal loophole that
critics say needs to be closed.
Goodwill Industries, a multibillion-dollar
company whose executives make six-figure
salaries, is among the nonprofit groups permitted
to pay thousands of disabled workers far less
than minimum wage because of a federal law known
as Section 14 (c). Labor Department records show
that some Goodwill workers in Pennsylvania earned
wages as low as 22, 38 and 41 cents per hour in 2011.
"If they really do pay the CEO of Goodwill
three-quarters of a million dollars, they
certainly can pay me more than they're paying,"
said Harold Leigland, who is legally blind and
hangs clothes at a Goodwill in Great Falls, Montana for less than minimum wage.
"It's a question of civil rights," added his
wife, Sheila, blind from birth, who quit her job
at the same Goodwill store when her already low
wage was cut further. "I feel like a second-class
citizen. And I hate it." Section 14 (c) of the
Fair Labor Standards Act, which was passed in
1938, allows employers to obtain
<http://www.dol.gov/whd/regs/compliance/whdfs39.pdf>special
minimum wage certificates from the Department of
Labor. The certificates give employers the right
to pay disabled workers according to their
abilities, with no bottom limit to the wage.
Most,
<http://www.dol.gov/whd/specialemployment/BusinessCertList.htm>but
not all, special wage certificates are held by
nonprofit organizations like Goodwill that then
set up their own so-called "sheltered workshops"
for disabled employees, where employees typically
perform manual tasks like hanging clothes.
The non-profit certificate holders can also place
employees in outside, for-profit workplaces
including restaurants, retail stores, hospitals
and even Internal Revenue Service centers.
Between the sheltered workshops and the outside
businesses, more than 216,000 workers are
eligible to earn less than minimum wage because
of Section 14 (c), though many end up earning the
full federal minimum wage of $7.25.
Description: http://msnbcmedia.msn.com/j/MSNBC/Components/Photo
NBC News
Harold Leigland, who is blind, with his guide dog
on the bus during his morning commute to the
Goodwill facility in Great Falls, Montana, where he works hanging clothing.
When a non-profit provides Section 14 (c) workers
to an outside business, it sets the salary and
pays the wages. For example, the Helen Keller
National Center, a New York school for the blind
and deaf, has a special wage certificate and has
placed students in a Westbury, N.Y., Applebee's
franchise. The employees' pay ranged from $3.97
per hour to $5.96 per hour in 2010. The franchise
told NBC News it has also hired workers at
minimum wage from Helen Keller. A spokesperson
for Applebee's declined to comment on Section 14 (c).
Helen Keller also placed several students at a
Barnes & Noble bookstore in Manhasset, N.Y., in
2010, where they earned $3.80 and $4.85 an hour.
A Barnes & Noble spokeswoman defended the Section
14 (c) program as providing jobs to "people who
would otherwise not have [the opportunity to work]."
Most Section 14 (c) workers are employed directly
by nonprofits. In 2001, the most recent year for
which numbers are available, the GAO estimated
that more than 90 percent of Section 14 (c)
workers were employed at nonprofit work centers.
Critics of Section 14 (c) have focused much of
their ire on the nonprofits, where wages can be
just pennies an hour even as some of the groups
receive funding from the government. At one
workplace in Florida run by a nonprofit, some
employees earned one cent per hour in 2011.
"People are profiting from exploiting disabled
workers," said Ari Ne'eman, president of the
Autistic Self Advocacy Network. "It is clearly
and unquestionably exploitation."
Defenders of Section 14 (c) say that without it,
disabled workers would have few options. A
Department of Labor spokesperson said in a
statement to NBC News that Section 14 (c)
"provides workers with disabilities the
opportunity to be given meaningful work and receive an income."
Terry Farmer, CEO of ACCSES, a trade group that
calls itself the "voice of disability service
providers," said scrapping the provision could
"force [disabled workers] to stay at home," enter
rehabilitation, "or otherwise engage in
unproductive and unsatisfactory activities."
Harold Leigland, however, said he feels that
Goodwill can pay him a low wage because the
company knows he has few other places to go. "We
are trapped," he said. "Everybody who works at Goodwill is trapped."
Leigland, a 66-year-old former massage therapist
with a college degree, currently earns $5.46 per hour in Great Falls.
His wages have risen and fallen based on
<http://www.dol.gov/elaws/esa/flsa/14c/18c4.htm>"time
studies," the method nonprofits use to calculate
the salaries of Section 14 (c) workers. Staff
members use a stopwatch to determine how long it
takes a disabled worker to complete a task. That
time is compared with how long it would take a
person without a disability to do the same task.
The nonprofit then uses a formula to calculate a
salary, which may be equal to or less than
minimum wage. The tests are repeated every six months.
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NBC News
Harold Leigland works at the Goodwill facility in
Great Falls, Montana, where he earns $5.46 an hour.
Leigland's pay has been higher than $5.46, but it
has also dropped down to $4.37 per hour, based on the time-study results.
He said he believes Goodwill makes the time
studies harder when they want his wage to be lower.
"Sometimes the test is easier than others. It
depends on if, as near as I can figure, they want
your wage to go up or down. It's that simple," he said.
His wife, Sheila, 58, spent four years hanging
clothes at the Great Falls Goodwill for about
$3.50 an hour. She said the time study was one of
the most degrading and stressful parts about her
job. "You never know how it's going to come out.
It stressed me out a lot," she said.
She quit last summer when she returned to work
after knee surgery and found that her wage had
been lowered to $2.75 per hour, a training rate.
"At $2.75 it would barely cover my cost of
getting to work. I wouldn't make any money," she said.
Harold said he believes Goodwill can afford to
pay him minimum wage, based on the salaries paid
to Goodwill executives. While according to the
company's own figures about 4,000 of the 30,000
disabled workers Goodwill employs at 69
franchises are currently paid below minimum wage,
salaries for the CEOs of those franchises that
hold special minimum wage certificates totaled almost $20 million in 2011.
In 2011 the CEO of Goodwill Industries of
Southern California took home $1.1 million in
salary and deferred compensation. His counterpart
in Portland, Oregon, made more than $500,000.
Salaries for CEOs of the roughly 150 Goodwill
franchises across America total more than $30 million.
Goodwill International CEO Jim Gibbons, who was
awarded $729,000 in salary and deferred
compensation in 2011, defended the executive pay.
"These leaders are having a great impact in terms
of new solutions, in terms of innovation, and in
terms of job creation," he said.
Gibbons also defended time studies, and the whole
Section 14 (c) approach. He said that for many
people who make less than minimum wage, the
experience of work is more important than the pay.
"It's typically not about their livelihood. It's
about their fulfillment. It's about being a part
of something. And it's probably a small part of
their overall program," he said.
And Goodwill and the organizations that run the
sheltered workshops are not alone in their
support for Section 14 (c). In many cases, the
families of the workers who have severe
disabilities say their loved ones enjoy the work
experience, enjoy getting a paycheck, and the amount is of no consequence.
Description: http://msnbcmedia.msn.com/j/MSNBC/Components/Photo
NBC News
Sheila Leigland, who is blind, with her guide
dog. She quit her job at Goodwill in Great Falls,
Montana, after her hourly wage was lowered to $2.75.
"I feel really good about it. I don't have to
worry so much about him," said Fran Davidson,
whose son Jeremy has worked at Goodwill in Great
Falls, Montana, for more than a decade. "I know
he's not getting picked on, and he's in a safe
place. He enjoys what he's doing, and he's happy,
and that's what we like for our kids." Jeremy
started out working for a sub-minimum wage but
did well on his last time study and is currently
earning $7.80 an hour, Montana's minimum wage.
But foes of Section 14 (c) have hopes for a new
bill that's now before Congress that would repeal
Section 14 (c) and make sub-minimum wages illegal across the board.
"Meaningful work deserves fair pay," the sponsor
of the bill, Rep. Gregg Harper, R.-Miss., told
NBC News. "This dated provision unjustly
prohibits workers with disabilities from reaching their full potential."
The bill is opposed by trade associations for the
employers of the disabled, and past attempts to
change the law have failed. But Marc Maurer,
president of the National Federation of the Blind
and a foe of the sheltered workshop system, is
cautiously optimistic that this time the bill
will pass, and end what he called a "two-tiered system."
That system, explained Maurer, says "'Americans
who have disabilities aren't as valuable as other
people,' and that's wrong. These folks have
value. We should recognize that value."
Monica Alba contributed to this report.
Video:
<http://www.nbcnews.com/video/rock-center/52257275/>http://www.nbcnews.com/video/rock-center/52257275/
Mr. Anil Lewis, M.P.A.
Eliminating Subminimum Wages for People with Disabilities
http://www.nfb.org/fairwages
Work: 410-659-9314 ext. 2374
Twitter: @anillife
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