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

[James Aldrich]

From:Lewis, AnilTo:Affiliate Presidents 
(state-affiliate-leadership-list at nfbnet.org)nfb-legislative-directors at nfbnet.orgSubject:[State-affiliate-leadership-list] 
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-percent-wrong



In a recent article, "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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