Goodwill and Section (C) of the Federal Labor Standards Act of 1938

Mike Fox, CEO of Goodwill Industries of Santa Clara/ Silicon Valley makes $344,754 in base salary. He has led Goodwill on a “rebuilding” trajectory that is to put Goodwill’s Outlets on par with many national retail clothing stores that you are familiar with like GAP or Old Navy. The problem is that he is doing it on the back of his employees. Some of his workers are paid sub-minimum wages thanks to Section 149(c) of the Fair Labor Standards Act of 1938. Is it legal? Yes. Is it ethical? You decide. Watch this story from NBC’s Brian Williams and investigative reporter Harry Smith.

 

NBC

And from this article in The Huffington Post by John Hrabe:

In California, these five Goodwill organizations exploit the special minimum wage exemption and pay executives top-dollar. A short sample of some executive compensation packages over the past few years:

  • $282,295- CEO of Goodwill Industries of San Diego County
  • $265,388- CEO of Goodwill Industries of Orange County
  • $376,317- CEO of Goodwill Industries of Sacramento Valley & Northern Nevada
  • $507,898- CEO of Goodwill of Southern California
  • $344,754- CEO of Goodwill Industries of Santa Clara County/ Silicon Valley