[Nfbc-info] FYI FW: [Nfb-legislative-directors] Section 14(c) of the Fair Labor Standards Act: 100 Percent Wrong

[Michael Hingson]

From: Nfb-legislative-directors
[mailto:nfb-legislative-directors-bounces at nfbnet.org] On Behalf Of Lewis,
Anil
Sent: Friday, January 10, 2014 05:51 AM
To: Affiliate Presidents (state-affiliate-leadership-list at nfbnet.org);
nfb-legislative-directors at nfbnet.org
Subject: [Nfb-legislative-directors] Section 14(c) of the Fair Labor
Standards Act: 100 Percent Wrong

 


Section 14(c) of the Fair Labor Standards Act: 100 Percent Wrong


Submitted by alewis on Thu, 01/09/2014 - 10:28 

Blog Date: 

Thursday, January 9, 2014

By Anil Lewis

https://nfb.org/blog/vonb-blog/section-14c-fair-labor-standards-act-100-perc
ent-wrong

 

In a recent article,
<http://www.politifact.com/georgia/statements/2013/dec/18/national-federatio
n-blind/goodwill-faces-criticism-over-pay-disabled-workers/> "Goodwill faces
criticism over pay for disabled workers," PolitiFact Georgia attempts to
evaluate the truthfulness of the National Federation of the Blind's claims
in our call for the repeal of Section 14(c) of the Fair Labor Standards Act
(FLSA), a provision that allows employers, like Goodwill Industries, to
obtain a Special Wage Certificate from the U.S. Department of Labor that
allows them to legally pay workers with disabilities less than the federal
minimum wage.  Our claim is that the use of subminimum wage payments to
workers with disabilities is unfair, discriminatory, and immoral, and we are
fighting to end the unreasonable practice of excluding people with
disabilities from being guaranteed the federal minimum wage. After their
rudimentary investigation, PolitiFact Georgia concludes that our claim is
half true.

PolitiFact Georgia rated our claim as half true based on the following
statements obtained from Goodwill representatives. "More than thirty percent
of the 700 Goodwill employees in the Savannah region are disabled, a
spokeswoman said. The region does hold a 14(c) certificate but doesn't use
it, and the lowest hourly wage offered employees in the region is $7.75 an
hour." The National Federation of the Blind obtained the wage information of
the Savannah Regional Goodwill from the U.S. Department of Labor Wage and
Hour Division through a FOIA request. These records show a number of
employees in the Goodwill Savannah Region being paid as little as $1.44 per
hour. So our investigation rates the Goodwill claim 100 percent false. If
the Savannah Goodwill has subsequently discontinued this practice, it is due
to the public awareness and advocacy efforts of the National Federation of
the Blind.

The article further states that, "There are no workers paid below minimum
wage at stores or offices in the Macon region.The region possesses the 14(c)
Special Wage Certificate but doesn't use it." Goodwill Savannah's false
assertion makes their claim suspect. The only way to be sure that these
entities will not choose to pay their workers with disabilities less than
the federal minimum wage is for them to surrender their Section 14(c )
Special Wage Certificate.

Goodwill International states that 101 of their affiliates operate
successfully without paying subminimum wages to their workers with
disabilities. However, rather than adopting a policy to require the other
sixty-four affiliates to operate in a similar fashion, the Goodwill
International representatives state that it is a local decision for these
affiliates to pay their workers with disabilities subminimum wages, and they
support this choice.

Section 14(c) is unfair. If it were fair, it would apply to every employee,
including the managers and executives. No other Goodwill employees are
willing to work at subminimum wages, nor will they consent to being paid
based on the flawed commensurate wage formula used to determine the wages
paid to the workers with disabilities.

Section 14(c) is discriminatory. It applies specifically to workers with
disabilities, discriminating based on the characteristic of disability, and
falsely assuming that workers are less productive because they have
disabilities.  

Section 14(c) is immoral. These section 14(c) "employers" are peddling their
segregated subminimum wage environments as a compassionate offering of
employment opportunities to the less fortunate, while their colleagues are
offering real wages to workers with disabilities.  The practice of
executives paying themselves six-figure salaries, while profiting on the
backs of individuals with disabilities they choose to pay pennies per hour,
is immoral.

Therefore, our claim that Goodwill International supports the use of an
unfair, discriminatory, and immoral provision that allows them to pay their
workers with disabilities less than the federal minimum wage is 100 percent
true.

Thankfully, more and more Goodwills across the country are making the
decision to transition to business models that do not use the special
"subminimum" wage certificates as a result of our public awareness and
advocacy efforts. If the Goodwill affiliates in the Macon and Savannah
regions are truly converting to this proven model, they should just
surrender the special wage certificates and discontinue the use of
subminimum wages like their sister affiliates in the Atlanta and Columbus
regions. However, as long as it is legal, there will be those that choose to
exploit this provision.

The Fair Wages for Workers with Disabilities Act of 2013, HR 831, will end
this exploitation by responsibly phasing out and eventually repealing
Section 14(c) of the Fair Labor Standards Act. As a result, individuals with
the most significant disabilities will no longer be trapped in segregated
subminimum wage workshops. Entities will have three years to transition to a
proven competitive integrated training and employment business model that
assists individuals with significant disabilities in obtaining real jobs at
real wages. The Goodwill affiliates opposing the adoption of this proven
model only demonstrate their lack of expertise in the field of employment of
people with disabilities, their inability to be competitive with similarly
situated organizations, and their unwillingness to truly meet the true
calling of their charitable status. Regardless of whether or not PolitiFact
Georgia feels our claims are half true, Section 14(c) is 100 percent wrong.

 

 

Mr. Anil Lewis, M.P.A.

Director of Advocacy and Policy

 

"Eliminating Subminimum Wages for People with Disabilities" 

http://www.nfb.org/fairwages

 

NATIONAL FEDERATION OF THE BLIND

200 East Wells Street at Jernigan Place

Baltimore, Maryland   21230

 

(410) 659-9314 ext. 2374 (Voice)

(410) 685-5653 (FAX)

Email: alewis at nfb.org

Web: www.nfb.org

Twitter: @anillife 

 

The National Federation of the Blind needs your support to ensure blind
children get an equal education; to connect blind veterans with the training
and services they need; and to help seniors who are losing vision continue
to live independent and fulfilling lives. To make a donation, please go to
www.nfb.org.

 

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