AP/ September 20, 2012, 5:40 AM

Judge: Texas firm must pay disabled workers $1.4M

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(AP) IOWA CITY, Iowa — A Texas company that profited for decades by supplying mentally disabled workers to an Iowa turkey plant at wages of 41 cents per hour must pay the men $1.37 million in back wages, a federal judge ruled late Tuesday.

The judgment against Henry's Turkey Service, in Goldthwaite, is the third of more than $1 million against the company after state authorities in 2009 shut down a dilapidated bunkhouse in rural Iowa where the men had lived since the 1970s.

The 32 employees had been paid $65 per month to work the processing line at a huge turkey plant in West Liberty after Henry's improperly deducted fees for room and board, care, transportation and other expenses out of their pay and Social Security checks, U.S. District Judge Charles Wolle ruled. The amount they were paid never changed during the 30-year period they worked at the plant, regardless of whether they worked more than 40 hours per week, he found.

The ruling came in a lawsuit filed by the Equal Employment Opportunity Commission, which alleged that Hill Country Farms violated the Americans with Disabilities Act by paying the workers discriminatory wages. Wolle ordered a trial in March on the rest of the claims in the EEOC's lawsuit, which alleges that the men faced a hostile work environment, harassment, verbal and physical abuse and other "adverse terms and conditions of employment" because of their disabilities.

Hill Country Farms, which did business as Henry's Turkey Service, offered little resistance to EEOC's wage claims. The company had been on contract to supply workers to the plant starting in the 1970s, when it was owned by Louis Rich Foods. By 2008, the company's contract with owner West Liberty Foods was worth more than $500,000 for work performed by the men in the evisceration department.

Wolle said the company "engaged in unlawful and discriminatory pay practices" that deprived workers of wages they earned. He said the $1.37 million represents how much more the intellectually disabled workers should have been paid between February 2007 and February 2009 for their work, based on wage rates paid to similarly-situated and experienced workers. Despite their disabilities, the workers "performed as productively and effectively as non-disabled workers doing the same jobs," he ruled, and testimony showed they even helped train their replacements when Henry's Turkey was winding down operations.

Even though they'd been there for decades, the law limits their recovery to the two-year period before the violations were reported.

A handful of the workers were employed at the bunkhouse, a converted former schoolhouse a few miles from the plant that Hill Country Farms rented from the city of Atalissa for $600 per month. It was shut down after investigators found substandard construction and other unsafe living conditions, a leaky roof and insect infestation.

Dallas-based EEOC attorney Robert Canino, who is litigating the case, said the country has made strides in offering employment opportunities for persons with mental, intellectual and developmental disabilities.

"Unfortunately, this case also reflects the sad reality that we still have a ways to go to ensure that employment of persons with disabilities does not require them to sacrifice their true earning capacity or their human dignity," he said in a statement.

He said company officials could not explain why they deducted $1,000 per month from each employee's wages to cover their room and board and other expenses — and hundreds of dollars from their disability benefits "for the very same described 'expenses'."

"Anyone could plainly see that the math just didn't add up, while the personal costs to the men continued to multiply," he said.

The U.S. Department Labor earlier won a $1.76 million judgment against the Henry's on behalf of the workers for violating wage and overtime laws, and Iowa Workforce development issued a $1.2 million fine against the company for violating state labor laws.

The company had agreed to change its wage practices in 2003 following a federal investigation, but it never did so, Wolle ruled.

The Iowa Attorney General's Office last year declined to bring criminal charges against the company or its owners, Kenneth Henry and Jane Ann Johnson, saying it felt that the civil penalties sought by regulators were enough to hold them accountable.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
32 Comments Add a Comment
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sandyhinden says:
Poor Henry and his Turkey Service... capitalism at its finest... madmen sitting in their room, counting their gold ... now manipulating digits on a screen in their Stock & Commodities Accounts... I am amazed that so many rich people are obsessed with Delusions of More... they have no real friends... they are not concerned about society, civilization, nature or future generations... brokenhearted, emotionally crippled men and women... the Power of the Greedy Mind... wish I had funding for the Center to Heal Greed ... once wrote this...
http://7keystolove.blogspot.com/2011/07/cure-for-greed-path-to-generosity.html
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BWB2020 says:
"The Iowa Attorney General's Office last year declined to bring criminal charges against the company or its owners, Kenneth Henry and Jane Ann Johnson, saying it felt that the civil penalties sought by regulators were enough to hold them accountable."

No wonder the US is classified as a tier3 human trafficking country, along with countries like Iran.

I remember when a young man named Vincent chin was beaten to death by men with baseball bats, the judge, upon passing sentence, refused to send the perps to jail, reasoning that the "white" perps were "not the kind of people you send to jail".
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luadda22 replies:
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Vincent Chin, wow! Going back a long ways aren't you? Then you must also remember that the two guys were union thugs with Chrysler too. Oh yeah, and it happened after a fight at a strip club in Detroit. And you must also remember that in Federal Court, a Detroit jury acquitted Nitz and later at a retrial in Cincinnati a jury cleared Ebens of all charges of violating Chin's civil rights.

And you must also remember that the Kaufmans in Detroit (the judge was Charles Kaufman) were Jews that strongly supported African-American aspirations for political office in Michigan.

But then again, they were "white" so they were racist weren't they bwb?
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ticobird says:
The civil penalty of $1.4 million seems like a slap on the wrist and criminal charges should have been filed as well. The prosecution really dropped the ball on this one.
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rubberrezi says:
Send the Iowa attorney general to work in a processing plant for $62 a week. They are all in the bed together. Time to get rid of all these good ole boy agribusiness buddies.
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obicera1 says:
A Republican's wet dream. Pay the workers nothing for the work they do and keep all the money for themselves. Oh wait, it's not a dream.
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lesserof2evil replies:
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Are you really that stupid to compare Bill Gate and Buffet and the Kennedy to the Koch brothers, the Walton family and Romney? Are you really that stupid?
Think3Times replies:
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There can actually be MANY things wrong with "being successful".. how did you get there? How many hard working people did you step on? How many other businesses did you drive into bankruptcy? Money is not the definition of success. Although Mr Romney will tell you differently.
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mryoubrian says:
Someone needs to go to prison!
I am so sick and tired of corporations breaking the law and just getting a fine. If you break the law as an individual you will go to prison but a corporation just pays a fine and moves on. The profits that the company has made over the last 30 years makes it PROFITABLE for them to break the law again!

This story will wither and die without much national attention at all, unless people start screaming at the top of their collective lungs and keep demanding justice.

We the people are supposed to make the laws of society through our congress and we need to demand some adjustments-
Embezzle money from ANY retirement fund, pension fund or 401k and the death penalty should be on the table!

Don't let this story die.
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woozybarnes says:
I wonder how much in tax breaks these "job creators" got for hiring disabled people.
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busterdawgggy says:
"The Iowa Attorney General's Office last year declined to bring criminal charges against the company or its owners, Kenneth Henry and Jane Ann Johnson, saying it felt that the civil penalties sought by regulators were enough to hold them accountable."

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Obscene. The owners committed criminal acts. And the two-year limit is disgusting as well. These workers are not being compensated for the work they performed.
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greennnnnn-2009 replies:
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Those people need to go to prison. Goes back to my adage, if you wanna do something illegal, make it BIG. You'll get less time for it. Or none, as in this case. Makes me wanna puke. So, in essence, they got off scott free, in my opinion. Just pay up and things are all good. Like the banks and oil companies and Wall Streeters. Blech.
PhxStano replies:
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The statutory limit can be extended to three years if the employees can show intent to violate the law. I cannot imagine a case where it would be easier to prove intent.
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endrepubs says:
That amount is still peanuts. But lets hope at least that the workers, if they are still alive, get all of the money and not some lawyers or representative taking their huge cut. I do think criminal charges are in order. The civil charges are a slap on the wrist.
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PhxStano replies:
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The legal fees will be paid by the employer on top of what goes to the workers, but even if the workers have to pay the fees, what is wrong with their lawyers getting paid? Without their help the workers would still be exploited. I presume that the author if this comment gets paid for whatever work he or she performs.
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Ben37221 says:
Romney, these are the 47% you call mooches. To you republicans, this is the type of America you guys are fighting for when you decide to do away with government regulations met to protect the disabled, work environment, yes, the powerless against the powerful.
I wonder what Jesus will say about a party and their supporters that want to do away with all these regulations?
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