Aurora’s new incentive-based homeless shelter is under fire for paying its guests $6.25 an hour, below the minimum wage, for participating in a training program that involves janitorial work. The program, which is part of the shelter’s tiered model, allows guests to earn better accommodations and other benefits by working with a case manager and making progress on their goals.

Shelter Defends Pay Practices

The CEO of the nonprofit running the shelter, Jim Goebelbecker, defended the pay practices, saying that the payment is not a wage but rather a perk of participating in voluntary education. However, employment attorney Adam Harrison argued that employers are still required to pay the minimum wage to individuals engaged in physical or mental effort for the company, unless they fall under specific exceptions.

The shelter’s program teaches guests skills to become janitors and safely mix chemicals, with the goal of preparing them for the job market. Guests who participate in the program receive a stipend of $25 for every four hours of work, which is paid every two weeks to mimic a future work environment.

Investigation Underway

The Colorado Department of Labor and Employment has confirmed an investigation into the shelter’s pay practices, although the investigation does not imply wrongdoing. The state will share the results of the investigation once it is complete.

Mayor Mike Coffman, who has been staying at the shelter every Friday night for four months, acknowledged complaints about the pay but said that the stipend is part of the job training exercise. However, former resident Titania Anastasia argued that the pay is not enough to help guests exit homelessness, given the high cost of living in the area.

Original reporting: Denverite — read the source article.