Salvation Army accused in Chicago, Illinois, lawsuit of paying rehabilitation workers far below minimum wage

A man named in a lawsuit against the Salvation Army claims the organization paid him $1 a week while he was enrolled in its rehabilitation program. The Salvation Army is being sued in three states, including Illinois, and is accused of violating federal law by failing to pay minimum wage to “thousands of people” who lived or worked in its adult rehabilitation centers nationwide.

According to the lawsuits, people enrolled in the Salvation Army’s adult rehabilitation centers must perform “work therapy,” which amounts to working at least 40 hours a week inside the organization’s thrift stores. In return, enrollees can be paid as little as $1 per week to start. That starting wage can increase weekly, but only up to $21 per week. Workers are also provided with dorm-like sleeping arrangements, food donated by third parties and donated clothing. The Illinois lawsuit, filed in Chicago, contends that the value of all of this is still “far below the required minimum wage.” The suits also allege that workers are often required to turn over to the Salvation Army any SNAP benefits they receive.

Attorney Michael Hancock, in a statement, said that the centers claim to be rehabilitative, “but the reality is that they take advantage of vulnerable people with few options.” He added that participants “are forced to do grueling manual labor, live in meager conditions, make pennies in wages and give up government assistance that could improve their self-sufficiency,” a concern about protecting the vulnerable (Proverbs 31:8-9).

There are about 120 Salvation Army residential adult rehabilitation centers across the country. The organization says they help people experiencing homelessness and others struggling with drug or alcohol addiction. A spokeswoman for the Salvation Army declined to comment on the lawsuit but said the organization remains “dedicated to our mission of meeting human needs without discrimination, which includes offering programs that promote stability to anyone in need in accordance with our capacity to help.”

Michael Clancy, the Illinois man named in the local lawsuit, entered the Salvation Army’s adult rehabilitation center at 506 N. Desplaines St. in 2019. Between July 2019 and January 2020, he worked at various facilities operated by the group. His starting pay was $1 a week, and he often worked more than 40 hours per week as his weekly salary slowly climbed to $21.

The lawsuit accuses the Salvation Army of violating the Fair Labor Standards Act, which requires workers to be paid a minimum wage of $7.25 per hour. The Chicago minimum hourly wage was $13 in early 2020 and has since increased to $15.

Attorney Jessica Riggin, in a statement, said that “for years, The Salvation Army has had two tiers of workers: full-time staff who are paid at or above the federal minimum wage, and [adult rehabilitation centers] participants who are paid a pittance for the same work.” She added that the organization “is an organization with tremendous resources and, like any employer, must adhere to federal law and pay all employees the minimum wage.”

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