AgdaPkt 2017-09-25 Closed and Joint SA PFA

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The Effects of a $15 Minimum Wage by 2019 in Santa Clara County and San Jose 49 Transitional Jobs Programs Transitional jobs programs provide short-term, subsidized employment and supportive services through a non-profit organization to help participants overcome barriers to employment. This may include programs for the formerly incarcerated, youth from disadvantaged backgrounds, adults with mental health challenges and the homeless. The programs typically provide a mix of services to their client employees including vocational training, legal services, counseling, etc. Most minimum wage laws treat transitional jobs programs the same as other non-profit organizations. To the degree the programs are funded by public contracts and philanthropy, the considerations for these programs may not be significantly different from other non-profit health and human service agencies. In Los Angeles and Santa Monica, participants in transitional jobs programs that meet specified criteria are exempted from the higher minimum wage for a maximum of 18 months. Other Exemptions General exemptions under state law As discussed above, local minimum wage laws generally incorporate the definition of who is an eligible employee from state law. Under California law the following employees are exempt from the state minimum wage: • A parent, child or spouse of the employer. • A person under the age of 18 employed as a babysitter for a minor child of the employer in the employer’s home. • Persons employed by the federal government. • “Outside salespersons” who spend more than half of their time away from their employer’s place of business. People employed in “executive, administrative or professional capacities” are exempt from most state wage orders (overtime, meal breaks, etc.). In order to be an exempt employee in California, the employee must earn a salary equal to twice the state minimum wage. Subminimum wages for workers with severe mental or physical disabilities Workers with severe mental or physical disabilities may be paid a sub-minimum wage if an employer has received a special license from the state labor commissioner. Wages are set based on the individuals’ productivity and the prevailing wage for similar work. There is no legal wage floor for these programs. This practice, which dates back to the passage of the Fair Labor Standards Act in 1938 has become more controversial in recent years. Opponents include the National Disability Rights Network and the National Federation for the Blind (“Groups Supporting the Repeal of Section 14(c) of the Fair Labor Standards Act” 2016). They argue that this allows for exploitation of disabled individuals. Proponents, such as Goodwill Industries, argue that it provides opportunities 8.A. - Page 63