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<DIV><FONT size=2 face=Arial>Federationists,</FONT></DIV>
<DIV><FONT size=2 face=Arial>As Kentuckians, we must be active in the
campaign of fair wages for people with disabilities. Please see the
link for the petition below, sign it and call your Senator and Representative in
Congress to urge their support. Please see the information from Anil
below-</FONT></DIV>
<DIV>
<P class=MsoNormal>There are now 30 co-sponsors of the Fair Wages for Workers
with Disabilities Act of 2013 (HR 831). We welcome Rep Perlmutter [CO-7],
Rep Brady [PA-1], Rep Takano [CA-41], Rep Fortenberry [NE-1], Rep DeGette
[CO-1], Rep Cummings [MD-7], and Rep Horsford [NV-4] as newly added
champions.<?xml:namespace prefix = o ns =
"urn:schemas-microsoft-com:office:office" /><o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal>Have you signed the online petition calling for the repeal of
Section 14(c) of the Fair labor Standards Act? Have you encouraged others
to sign? Visit <A
href="http://www.nfb.org/fair-wages-petition%20%20www.nfb.org/fair-wages-petition">http://www.nfb.org/fair-wages-petition
www.nfb.org/fair-wages-petition%20%20</A><o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal>We must keep getting the word out. Take the time to
read and share the following blog post on the Commensurate Wage Fallacy.
<o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<H1><SPAN style="FONT-SIZE: 18pt">The Commensurate Wage
Fallacy<o:p></o:p></SPAN></H1>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">https://nfb.org/blog/vonb-blog/commensurate-wage-fallacy<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Submitted
by <SPAN class=username>alewis</SPAN> on Mon, 04/15/2013 - 09:36
<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Blog
Date: <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
class=date-display-single><SPAN style="COLOR: #333333; FONT-SIZE: 9pt">Monday,
April 15, 2013</SPAN></SPAN><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"><o:p></o:p></SPAN></P>
<P
style="LINE-HEIGHT: 18pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in; mso-margin-top-alt: 12.0pt"
class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">By
Anil Lewis<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Under
Section 14(c) of the Fair Labor Standards Act, a flawed formula has been used
for years to calculate the commensurate “piece rate” wage for workers with
disabilities. This formula, based on average wages and survey data, works
mathematically, but fails the common sense test. My twelve-year-old
stepson asked me the following question from his math homework: If Johnny can
run one mile in two minutes, how fast can Johnny run two miles? He knew
that the expected answer was four minutes. However, he also had the common
sense to know that Johnny would get tired, and it would take Johnny more time to
run each consecutive mile. I told him to put four minutes as the answer.
He got an “A” on the homework, but he did not understand why he got an “A”
for the wrong answer. I validated his common sense and applauded the fact
that at twelve years old, he understood the root of the commensurate wage
fallacy. The commensurate “subminimum” wage formula used by over three
thousand employers to determine how much they should pay their workers with
disabilities is based on the same flawed logic as the math problem.
<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Before
we get to the real commensurate wage fallacy, we must discuss how the prevailing
wage is determined. A subminimum wage employer must conduct an annual wage
survey of private sector jobs in the employer’s geographic area that are similar
to the jobs being performed by the workers with disabilities. Then the
employer takes the average of at least three of these industry wage rates to
determine the hourly prevailing wage for the job. For example, if three
private sector employees are being paid $8.25, $8.30, and $8.35 respectively,
the average wage rate of $8.30 would be the prevailing wage used in the
commensurate wage formula. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">The
math is correct, but common sense tells you that the subminimum wage employer
gets to shop around to determine which industry wage rates to use, so if there
is a private sector employee being paid $9.00 for a similar job, there is no
requirement for the employer to use this higher wage in the calculation.
It is more likely that there are no similar jobs in the community, in
which case the employer should use the federal minimum wage of $7.25 (or the
higher state minimum wage, if one applies) as the prevailing wage. Some
subminimum wage employers illegally use less than this amount; and with little
to no oversight, this exploitation goes unaddressed for years.
<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">The
most convoluted and manipulative step used to determine the commensurate wage is
for the employer to conduct a time study. The employer chooses an
experienced nondisabled worker to perform the job for twenty minutes.
Ideally, this is done for at least three cycles by the same person or
three different people. This provides three productivity rates that are
then averaged to determine the average “piece rate.” Therefore, if
thirty-eight items are produced in the first cycle, forty items are produced in
the second, and forty-two items are produced in the third, the benchmark would
be set for the workers with disabilities to produce forty items in twenty
minutes, or two items per minute. This means the expectation is for the
workers with disabilities to produce 120 items per hour in order to be paid the
$8.30 prevailing wage. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Again,
the math is sound, but common sense tells you that the employer can conduct many
more time studies and choose the results to manipulate the commensurate wage
outcome, ignoring those time studies in which less than thirty-eight items are
produced. Essentially, the employer can conduct as many time studies as
necessary to justify the wage that the employer would like to pay for the job.
<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Common
sense also tells you that it is unfair to set a productivity benchmark for an
entire work day using only a twenty-minute time study. Think of it as
another version of my stepson’s math problem: if Johnny can produce 120
items in an hour, how many can he produce in two hours? My twelve-year-old
stepson knew the answer. He realized that Johnny would get tired, and his
productivity would decrease over time. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">The
commensurate wage professionals state that they take all of this into
consideration by providing a 15 percent time allowance for Personal time,
Fatigue, and Delay (the PF&D factor). This is calculated to be nine
minutes per hour, which many employers round to ten minutes per hour.
Therefore, the productivity expectation set for the workers with
disabilities under the earlier scenario would be for them to produce one hundred
items per hour in order to earn $8.30. This is more commonly stated to be
a piece rate, where the workers with disabilities are paid eighty-three cents
for each item they produce. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Although
the PF&D allowance may bring the productivity expectation in line with the
worker’s reasonable ability to produce over time, this cannot be considered an
adequate adjustment for personal time, fatigue, and delay inclusively.
Most subminimum wage employers do not encourage the PF&D allowance to
be used for breaks. Although most employers are required to provide
nondisabled employees a ten-minute paid rest period for every four hours worked,
the sheltered subminimum wage workshops are excluded from this requirement.
In fact, the ability to work without a break is presented by the
subminimum wage employer as a benefit to the workers with disabilities, who are
encouraged to work as much as possible in order to earn as much as possible.
This type of pressure produces stress; the stress results in mistakes; and
mistakes result in defective products that the workers do not get paid for
producing. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Delay
is also out of the control of the worker. The workers cannot produce
anything if the employer is delayed in providing them materials to produce the
item, and unlike the nondisabled workers that get paid an hourly rate, the
workers with disabilities do not get paid when they are not producing products.
The legal requirement to pay for down time is at the discretion of the
employer, and if an employer does not provide production supplies in a timely
manner, the workers with disabilities can be left idle for much more than ten
minutes without the supplies to produce anything, thus earning nothing.
<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">The
unspoken math is that there are currently over three hundred thousand people
with disabilities being paid wages below the federal minimum. Specifically, 50
percent of these workers receive less than half the federal minimum wage, and 25
percent receive less than one dollar per hour, some as low as three cents per
hour. The common sense truth is that most of these individuals are already
productive enough to earn the federal minimum wage; they are just victims of the
flawed wage formula. Others could be productive enough to earn the federal
minimum wage if provided the proper training and support, but will never receive
either the training or support while segregated in a subminimum wage work
environment. Those individuals being paid less than one dollar per hour
are truly not ready for work, but the subminimum wage employers assert that
these workers are being afforded an opportunity to experience the tangible and
intangible benefits of work. The workers with disabilities get the
extremely intangible benefit of subminimum wages. The executives get the
true tangible benefit from the public and private dollars meant to support the
workers with disabilities, but used instead to support the six-figure salaries
of the executives. The subminimum wage employers are essentially getting
an “A” for the wrong answer. <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">The
fallacy here is that the workers with disabilities are supposedly being paid
based on their productivity. If the employers truly believe that the
commensurate wage model is adequate and fair for workers with disabilities, why
not use the commensurate wage formula to calculate the wages for all of the
sheltered workshop employees, including the executives? My twelve-year-old
stepson would know the answer to this question as well.<o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt"> <o:p></o:p></SPAN></P>
<P style="LINE-HEIGHT: 18pt" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Trebuchet MS','sans-serif'; COLOR: #333333; FONT-SIZE: 9pt">Visit
<A href="http://www.nfb.org/fair-wages"><SPAN
style="FONT-FAMILY: 'Calibri','sans-serif'">www.nfb.org/fair-wages</SPAN></A> to
get more information, and add your name to <A
href="https://nfb.org/civicrm/petition/sign?sid=1&reset=1"><SPAN
style="FONT-FAMILY: 'Calibri','sans-serif'">our online petition</SPAN></A> to
help us stop the perpetuation of the commensurate wage
fallacy.<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 12pt"><o:p> </o:p></SPAN></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal>Mr. Anil Lewis, M.P.A.</P></DIV></BODY></HTML>