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Minimum wage law

SCOTTSDALE – Tiffany LaBue is one of thousands of Arizonans with disabilities who are waiting to know if they will be able to continue to hold a job in this state.

When Proposition 202 went into effect in January raising the minimum wage to $6.75 an hour, one group of Arizona workers did not cheer the increase.

LaBue, who lives in Scottsdale, is mentally challenged. She works two days a week clipping coaxial cables under a Scottsdale Training and Rehabilitation Services contract with Cox Communications.  STARS is a service provider that employs marginally productive workers with disabilities such as LaBue at lower than minimum wage scale.

STARS and other organizations that employ people with disabilities are working with the state industrial commission to obtain an exemption for these workers under Prop 202 so they can continue to work. Prior to passage of the proposition, Arizona had no minimum wage law and the federal minimum wage of $5.15 an hour contained an exemption for these workers.

“She loves working–it gives her a sense of responsibility and she’s very sociable,” said Tiffany’s mother, Pat LaBue.

“I know how important working is to Tiffany and know she would be heartbroken if she could not work.”

Scottsdale Training and Rehabilitation Services and other such service providers statewide  employ people with severe disabilities who could not otherwise hold a job. This private nonprofit finds contract work for these people who are paid according to their abilities.

For example, a non‑disabled person could earn $10 an hour making 10 widgets an hour, so STARS will take that industry average and determine that their client can produce one per hour and pay him $1 an hour, said STARS president Jeffrey Battle. Some workers earn on average $1.75 an hour.

According to Battle, the state has temporarily suspended enactment of the law with respect to people with these types of disabilities.

The Arizona Industrial Commission is proposing an exemption to the new law, he said. The exemption would appear in the rules now being promulgated to interpret the law.  The rule would define employee under Prop 202 not to include trainees and service recipients such as people with severe disabilities.

“This (exemption) is really important,” Battle said. “If it passes through all the protocol, it means our 80 clients will continue to enjoy remuneration and training work experience.”

“If it passes, our clients will be able to enjoy the same kind of sense of accomplishment and achievement, and socialization that everybody else enjoys in their jobs,” Battle added.

If the exemption does not pass, Battle estimates about 3,000‑5,000 workers with disabilities would lose their source of employment.

A public hearing on the policy exemption will be held at 1:30 p.m. March 22 at  the Industrial Commission Office, 800 W. Washington St. in Phoenix.

 
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