Republican Congressman's bill would phase out the exploitative practice.
from AlterNet
"Harry Smith’s report, which aired on Rock Center with Brian Williams, probes a loophole in the Fair Labor Standards Act of 1938 that allows employers to pay disabled workers far below the federal minimum wage. Section 14 (c) of FLSA grants certificates to certain employers, permitting them to pay adjusted wages to workers 'whose earning or productive capacity is impaired by a physical or mental disability.' Qualified employers create 'sheltered workshops,' 'where employees typically perform manual tasks like hanging clothes.
"According to Labor Department documents obtained by NBC, Goodwill used this loophole to pay disabled workers in sheltered workshops 'as low as 22, 38 and 41 cents per hour in 2011,' presenting a stark contrast to charity executives. …"