The Salvation Army gets sued for its work-based rehab
The Salvation Army is known for its chain of thrift stores and for its bell-ringing at Christmas, but the nonprofit is also one of the largest providers of drug and alcohol rehabilitation in the United States, running about 100 rehab programs around the country. Rehab participants typically do not have to pay for a place in the residential program. But once there, the main mode of treatment is what The Salvation Army calls “work therapy” at the charity’s thrift stores, which generate more than $598 million in annual sales.
After Reveal’s investigation into work-based rehabs, a group of five former rehab participants has filed a class-action lawsuit against The Salvation Army. The lawsuit, filed in San Francisco Superior Court, alleges that the charity violated California labor laws by not treating the workers as employees and failing to pay them minimum wage and overtime. According to the complaint, participants were required to work full time processing donations for the organization’s thrift stores or performing maintenance jobs, repairing goods or operating heavy machinery. In exchange, they received stipends of between $1 and $25 per week or “canteen cards” they could use to buy soda, chips or other snacks at The Salvation Army canteen. “There’s no nonprofit exemption to the labor code,” attorney Jessica Riggins told Reveal reporter Shoshana Walter. “Even if they do good, that’s not a reason for them to not comply with the law like every other California employer.”
Read the story: Salvation Army faces lawsuit over labor law violations
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