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Paying Disabled Workers Below Minimum Wage

A loop in the federal law allows employers to play disabled workers on a lower pay scale, even below the minimum wage mark; WXII 12's Bill O'Neil reports on the efforts to equalize the pay here in the Tar Heel state.

Paying Disabled Workers Below Minimum Wage
A loop in the federal law allows employers to play disabled workers on a lower pay scale, even below the minimum wage mark; WXII 12's Bill O'Neil reports on the efforts to equalize the pay here in the Tar Heel state.
WEBVTT COMPANIES SUCH ASGOODWILL HAVE COMEUNDER FIRE ACROSSTHE COUNTRY FORPAYING SOMEDISABLED WORKERSLESS THAN MINIMUMWAGE.A LOOPHOLE INFEDERAL LABOR LAWDATING BACK TO 1937MAKES IT LEGAL TO PAYDISABLED WORKERSLESS THAN ABLEDBODY ONES.BUT CRITICS ARGUEIT'S NOT RIGHT....BILL O'NEIL JOINS USWITH THE STORY....ASWXII 12 NEWSINVESTIGATES.437 01 47 131 229 254 410415THERE ARE 94-HUNDRED DISABLEDWORKERS IN OURSTATE EARNING LESSTHAN MINIMUM WAGEACCORDING TO THEU.S. LABORDEPARTMENT. SOMEARE IN VOCATIONALWORKSHOPS ORTRAINING PROGRAMSAND SOME ARE JUST INLOW PAYING JOBS. NOGROUP HAS FOUGHTHARDER TO CHANGETHE MINIMUM WAGEEXCEPTION THAN THENATIONAL FEDERATIONOF THE BLIND.8;56 PEOPLE USE THISCERTIFICATE TOEXPLOIT BLIND PEOPLEAND PEOPLE WITHDISABILITIES YES.ONE MEMBER OF THEGROUP SPENT NEARLY3-YRS IN A SHELTEREDWORKSHOP EARNINGLESS THAN MINIMUMWAGE.1;49 WE ALL FELTDEMEANED ANDDEGRADED. JAMESBENTON SAYS THE SUBMINIMUM WAGE HEEARNED MADE ITTOUGH TO RAISE HISFAMILY.2;11 THAT WAS A VERYEMBARRASSING THINGIF YOU HAVE A LOT OFPRIDE IN YOURSELF.U.S.LABORDEPARTMENTRECORDS SHOW THREECOMPANIES IN THEPIEDMONT TRIAD PAYUSING SUB MINIMUMWAGES TO THEDISABLED. GOODWILLINDUSTRIES IN WSGOODWILL INDUSTRIESIN GSO AND ACOMPANY CALLEDMONARCH WHICHOPERATES SHELTEREDWORKSHOPS INWALNUT COVE AND WS.THE WS GOODWILLGENERATED 55 MILLIONDOLLARS IN REVENUEACCORDING TO ITSLATEST RECORDS ANDPAID ITS CEO OVER 300-THOUSAND DOLLARS INCOMPENSATION.CONOVER A COMPANYSPOKESMAN SAYS ITPAYS SUB MINIMUMWAGES TO 90 DISABLEDPARTICIPANTS IN WHATIT CALLS "COMMUNITYACCESS PROGRAMS" INASHEVILLE ANDCONOVER.SHERRYCARPENTER/GOODWILLINDUSTRIES OF NW NC8:30 WHY COULDN'TYOU PAY THE MINIMUMWAGE? BECAUSE THISIS NOT COMPETITIVEEMPLOYMENT. THEGOODWILL SPOKESMANSAYS THIS IS AVOCATIONALEXPERIENCE NOT AJOB. IT'S PAID FOR BYGOODWILLITSPRIVATE BUSINESSPARTNERS ANDTAXPAYERS.PARTICIPANTS EARNROUGHLY $4 AN HOURTO COMPLETE SIMPLETASKS LIKEPACKAGING. GOODWILLSAYS THIS PROGRAMWOULDN'T SURVIVEWITHOUT SUB-MIMIMUMWAGES. 15:27 ARE YOUSAYING WITHOUT THECERTIFICATE BIZWOULD NOT PARTNERWITH YOU? THAT ISCORRECT.6:30 WE'RE NOT DOINGANYTHING ILLEGAL. THEGSO GOODWILL TAKESA DIFFERENTAPPROACH.THIS COMPANYGENERATED OVER 17-MILLION DOLLARS LASTYEAR AND PAID ITS CEOMORE THAN 300-THOUSAND INCOMPENSATIONACCORDING TO TAXRECORDS. A COMPANYSPOKESMAN SAYSTHEY PAY SUB MINIMUMWAGES TO DISABLEDTRAINEES LOOKINGFOR COMPETITVE JOBS.NOTING NEARLY 200DISABLED TRAINEESEARNED NEARLY $7 ANHOUR LAST YEARJUST UNDER THEMINIMUM WAGE.9:28 IF YOUR PAY ISPRETTY MUCH MINIMUMWAGE IT WOULD SEEMSUPERFLUOUS THATYOU WOULDN'T NEEDIT. I'M GLAD YOU KEEPASKING THATQUESTION. IT'S A VERYCOMPLEX. WHAT'S NOTCOMPLEX IS THEDIFFERENCE DISABLEDTRAINEES AND ABLEBODIED TRAINEESEARN AT THE GSOGOODWILL.THE COMPANY PAIDDISABLED TRAINEE'S $7AN HOUR ONAVERAGE WHILEABLED BODY TRAINEE'SWERE PAID $9.44 ANHOUR.12:17 IT WAS AWONDERFUL BIZPRACTICE YRS AGO.IT'S TIME TO MOVE ON.THE ONLY OTHERCOMPANY IN THEPIEDMONT TRIADPAYING SUB MINIMUMWAGES SAYS IT'S TIMETO END THATPRACTICE.24;43 JUST BECAUSETHEY HAVE ADISABILITY DOESN'TMEAN THEY CANTHROWN AWAY ORSEGREGATED.TAX RECORDS SHOWMONARCH ACOMPANY BASED INALBERMARLEGENERATED OVER 55-MILLION DOLLARS INREVENUE LAST YEARAND PAID ITS CEO OVER200-THOUSAND INCOMPENSATION. AMONARCH SPOKESMANSAYS IT HAS 174-WORKERS IN WS ANDWALNUT COVEWORKING INSHELTEREDWORKSHOPS EARNINGON AVG $4 AN HOUR.THE COMPANY SAYS ITPLANS TO PHASE OUTSUB MINIMUM WAGESOVER THE NEXT TWOYEARS BUT NOTESSOME OF THECOMPANIES ITPARTNERS WITH WANTTO KEEP THE CHEAPLABOR.18;54 THEY TOLD US WELIKE WHAT YOU'REDOING AND WE WANTYOU TO STAY THATWAY IF YOU CHANGETHAT WE WILL NOLONGER FUND YOU TOSERVE THESE PEOPLE.??? THE NATIONALFEDERATION OF THEBLINDS' GOAL IS TO ENDTHE SUB MINIMUMWAGE IN THREE YEARSTHRU LEGISLATION. NCCONGRESSMANHOWARD COBLESUPPORTS THATEFFORT.6;04 I THINK IT'SPROBABLYINDEFENSIBLE. THE NCREPUBLICAN WHOHAS REPEATEDLYBLOCKED EFFORTS TORAISE THE MINIMUMWAGE SAYS ITSDIFFICULT TO JUSTIFYPAYING DISABLEDWORKERS ANYTHINGLESS.REP. HOWARD COBLE/.N.C. 6;06 IF YOU'REGOING TO CUT SOMESLACK CUT SOMESLACK TO THEDISABLED COMMUNITY.CONGRESSMAN COBLESAYS THERE ARE 39-SPONSORS IN THEHOUSE BACKING A BILLTO END THE SUBMINIMUM WAGECERTIFICATE BUTWISHES THERE WERETWICE THAT MANY.THIS LEGISLATIONFACES A TOUGH ROADAHEAD. CAMWANDA THIS WASOBVIOUSLY A VERYSENSITIVE STORY FORTHE FOLKS ATGOODWILL ANDMONARCH. THEY ALLPOINTED OUT THEPOPULARITY OF THEPROGRAM AMONGBOTH THEPARTICIPANTS ANDTHEIR FAMILIES.
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Paying Disabled Workers Below Minimum Wage
A loop in the federal law allows employers to play disabled workers on a lower pay scale, even below the minimum wage mark; WXII 12's Bill O'Neil reports on the efforts to equalize the pay here in the Tar Heel state.
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