Welfare jobs and minimum wage law
latimes.com
WASHINGTON -- The Bush administration is moving to allow
states to place welfare recipients in jobs that pay less than the
minimum wage--a reversal of federal policy that is sparking ire
among public employee unions and advocates for the poor.
The White House idea is that such cut-rate jobs could provide
work experience for many thousands of welfare recipients who have
not moved into the labor force. Such work could take the form of
community service, including tasks like cleaning up at parks and
helping out in offices.
The Bush administration has concluded that this "supervised
work experience" does not amount to a real-world job and should
not be governed by the Fair Labor Standards Act, which sets the
national minimum wage at $5.15 an hour, officials said this week.
Some states, including California, have higher minimums.
"It's intended to give them some work experience and give them
an understanding of work," said Andrew Bush, a welfare official
in the U.S. Department of Health and Human Services. "That is not
something that should be subject to minimum wage laws."
The proposal is part of the administration's push to impose
much stricter work rules on welfare recipients, as Congress
reexamines the sweeping welfare overhaul of 1996. The law expires
later this year, and political leaders are starting to debate how
to change it, with initial disputes emerging on the work rules
that states would be required to follow.
"You need to have a program that's very well-focused, and you
need to have your clients very focused--and that focus needs to
be on employment," said Bush, who heads the Office of Family
Assistance.
The welfare rolls, which peaked at 5 million families in 1994,
have dropped by more than 50%.
Today, 1 in 3 welfare recipients holds a job. The Bush
administration wants to increase that figure significantly, to 7
in 10. But welfare recipients who seek to enter the work force
face a weaker economy than in the booming mid- and late-1990s. In
addition, many of the most readily employable welfare recipients
found jobs during those robust years, in many cases leaving
behind those with fewer job skills.
One way states could achieve the big gains sought by the White
House would be to expand community service jobs for welfare
recipients, creating opportunities for some of the hardest to
place.
"What you're really trying to do is inculcate regular work
habits and expectations," said Jason Turner, who formerly ran New
York City's job program for welfare recipients.
Government has been in the business of creating jobs for many
years, notably in efforts to help unemployed victims of the Great
Depression in the 1930s. But the federal strategy of designing
work experience in return for welfare checks is more recent,
gaining attention in the 1990s when political leaders agreed to
make the goal of work the centerpiece of welfare.
While the Bush administration would leave states various
options to meeting its work requirements, it is placing a new
emphasis on government-designed work experience.
But whether such jobs should pay less than minimum wage, as
the Bush administration would allow, is stirring a debate over
fair treatment of society's least able workers. Already, the
White House proposal is starting a backlash among those who claim
that sub-minimum-wage welfare jobs inevitably displace real jobs
held by low-income workers. More broadly, critics argue,
sub-minimum-wage jobs threaten to pull down wage levels and
working conditions for other workers who toil at the bottom rungs
of the wage ladder.
"Our view is that if someone is doing work, and they're a
worker, they ought to be treated like any other worker," said
Nanine Meiklejohn, a lobbyist for the American Federation of
State, County and Municipal Employees in Washington. She added
that placing welfare recipients in jobs "shouldn't be used as an
excuse to pay people sub-minimum wages."
"We will certainly fight it," she said of the Bush
administration plan.
The Bush administration would require that most welfare
recipients work for at least 24 hours a week. It also would
tighten the definition of allowable work for those hours. For
example, welfare recipients would no longer be able to count time
spent in vocational education and job searches as substitutes for
the 24-hour work requirement.
Given the tougher hurdles, some experts say states that spend
less money for their welfare programs could face significant new
pressures to create jobs for welfare recipients, particularly if
the economy remains weak.
"Many states will have to consider creating or expanding
[community service programs] to meet the new requirements," said
Sheri Steisel, director of human services policy at the National
Conference of State Legislatures.
In the past, scattered programs, including those in Wisconsin
and New York City, emerged to provide public work activities for
welfare recipients. In 1997 and again in 1999, the Clinton
administration made clear that most such jobs--frequently
referred to as "workfare"--were generally covered by federal laws
on the minimum wage. Under the Clinton policy, which remains in
effect, a person's welfare and food stamp benefits could be
counted as the compensation. The Bush administration plans to use
welfare reform legislation as the way to enact its minimum wage
provision.
Rep. Benjamin L. Cardin (D-Md.), who has introduced a major
Democratic proposal on welfare reform, questioned in an interview
whether the White House emphasis on publicly created work
experience would ultimately benefit those who do it. As for
sub-minimum wages, he said: "It's just not right. It's not fair
to people involved that they should not have these
protections."
California and other states are only just learning details of
the Bush welfare plan, and few were prepared to give substantive
reaction Tuesday. But Andrew Roth, a spokesman for the California
Department of Social Services, said the state "would pay at least
the prevailing minimum wage" of $6.75 an hour for such work.
In fact, relatively few states have established large public
work programs for their welfare recipients, in part because the
private economy generated so many jobs during the 1990s. Also,
less-affluent states that tend to spend less on welfare programs
would face difficulty in setting up large-scale work programs if
they are required to pay minimum wages, some pointed out.
Community service jobs would be just one way that states could
satisfy the stiffer work requirements proposed by the Bush
administration. Private-sector jobs, publicly subsidized jobs and
on-the-job training could meet the standards. According to one
administration document, the minimum-wage provision applies to
"supervised work experience" and "supervised community
service."
At the same time, administration officials maintain that there
are many ways a welfare recipient can enter the work force, with
traditional private-sector jobs remaining a real possibility even
in a weaker economy.
In a recent meeting with reporters, HHS Secretary Tommy G.
Thompson maintained that the economy continues to generate many
low-wage opportunities for welfare recipients, such as in health
care. "I think there's plenty of opportunities like that in every
state in America."
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