Library Collections: Document: Full Text

21. Warning! All information relative to Wages and Hours and the relation of Goodwill Industries under the Fair Labor Standards Act heretofore issued by your executive secretary and included in this Bulletin are simply the interpretation and observation of your executive secretary and have been given in order that Goodwill leaders may have the benefit of the discussion both in the Sheltered Workshop Advisory Committee and informal discussion outside of the committee with members of the Wage and Hour staff. None of the information issued by your executive secretary thus far is to be interpreted as a ruling of the Wage and Hour Division. The only definite matters that have been issued by the Division have been the special temporary exemption order under which we have operated for many months and the new regulation, copies of which have been put into the mail to all Goodwill Industries executives. As soon as the applications for Sheltered Workshop certificates have been received by the Wage and Hour Administration the Sheltered Workshop Advisory Committee meets to work out the policies along with the Administration upon which Sheltered Workshop certificates shall be issued, then definite rulings will be issued by the Wage and Hour Administration and your executive secretary will interpret those regulations and rulings as he understands them in relation to Sheltered Workshops in general and Goodwill Industries in particular.

22. Incidentally an investigator or field worker from the Wage and Hour Administration, working under the direction of the Division staff member in charge of Sheltered Workshops, has already visited a number of Sheltered Workshops and a number of Goodwill Industries to actually see at first hand the work that is being done by Goodwill Industries, and to learn personally some of the problems involved in the operation of our organizations.

SPECIAL NOTE

Just as the Bulletin is being completed and the last stencil cut, a letter has been received from Col. John M. Smith, Jr., Chairman of our Sheltered Workshop Advisory Committee, suggesting that all Sheltered Workshops be advised of one additional matter of record in the Sheltered Workshop Advisory Committee minutes concerning the relation of Sheltered Workshops to the Wage and Hour Act. It may possibly come to you later in the form of a letter, but the substance of the matter is quoted hereto. It is further evidence of the stand your committee is taking in order to be certain that all rights of the individual Sheltered Workshops are being protected. The quotation follows:

"This committee (Sheltered Workshop Advisory Committee) met and considered the matters presented to it over an extended period with the result that at a meeting on January 19, 1940, a recommendation was made to the Administrator. In the formal minutes of this meeting, there was included a statement of the position of the members of the Committee from the Charitable institutions, as follows:

"I think for the purpose of the record it is pertinent to state the position of such of the members of the Advisory Committee on Sheltered Workshops as represent the charitable organizations and institutions, and of such organizations and institutions themselves.

"Our position is that the charitable institutions and organizations do not fall within the purview of the Fair Labor Standards Act, and that in the formulation of any regulations or any other action which may be taken by ourselves or themselves in regard to such regulations or otherwise, we reserve to ourselves and for them the right to raise the question at any time as to whether such institutions or organizations fall within the purview of the Act, and to take any action that may be deemed advisable in furtherance of such position.

"Our action in the matter is to be construed as one of cooperation with the Administrator in carrying out the purposes of the Act."

To this statement, the representative of the Administrator made the following reply:

"We are not unfamiliar with the reservation of rights, and we understand the attitude of the Sheltered Workshop group in this regard, that they feel they are not covered by the Act and that they are here in the spirit of cooperation.

"It perhaps is advisable for me to say that the General Counsel of the Wage and Hour Division has considered this matter carefully and frequently, and it is his considered opinion that workers in Sheltered Workshops who are engaged in commerce, or in the production of goods for commerce, are entitled to the benefits of the act, and, with that expression of friendly disagreement, I think we can go ahead."

It will be seen from the above that the position of the institutions was made clear and that notwithstanding any action they may take with regard to the regulations in any respect, has reserved for them the right to raise the question at any time as to whether they fall within the purview of the Fair Labor Standards Act, and they may take any action they may deem advisable in furtherance of that reservation. Furthermore, any action they may take now or in the future in regard to the regulations, is to be construed solely as a desire to cooperation with the Administrator in carrying out the purposes of the Act.