Employers: Pay hike could cut jobs for those with disabilities
April 7th, 2010Atalissa case prompts call for review of U.S. subminimum wage provision
From the [Cedar Rapids, Iowa] Gazette:
In the wake of a scandal involving the alleged exploitation of workers with intellectual disabilities, Iowa Sen. Tom Harkin is calling for a review of a federal law that allows employers to pay workers with disabilities less than the federal minimum wage.
But organizations like Goodwill Industries are rising to defend the lower wages for workers with disabilities, saying they can’t afford to employ as many workers at higher rates. As an example, a 21-year-old woman with cerebral palsy who types labels for Goodwill in Iowa City earns $1.25 per hour.
A spokesman for the organization said elimination of the subminimum wage provision would cause 500 people to lose their Goodwill jobs in Iowa City alone.
The federal law permits qualifying employers to set wages for workers with disabilities based on their productivity rather than the hours they work. Intense federal scrutiny of the law was prompted by allegations last year that workers with disabilities were paid only $65 a month to work for a turkey processing company in Atalissa, Iowa.
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