June 20, 2005

Accessing Work Supports for Low Wage Workers: Opportunities for Employee-Owned Businesses

NCEO founder and senior staff member

Many employee ownership companies employ people who meet one or another definition of a low-wage worker. A new project is working to help employers make sure these employees can access the many benefits available to them, usually at no cost to the employer. There are a growing array of public benefit programs (Earned Income Tax Credit (EITC), Child Tax Credit, Children's Health Insurance Plan, Food Stamps, Medicaid, Low Income Heating Assistance Program (LIHEAP), Section 8 Housing Vouchers, transportation subsidies) that low wage workers can receive based on eligibility and income. These benefits can add up to over $10,000 a year for low wage households and can make a huge difference in income that can be used to pay pressing bills and provide child care, education, housing and other basic needs. Additionally, the income can be used towards savings and asset building leading to increased economic independence for low income households. Many low wage workers do not know how and fail to access benefits for which they are eligible for due to lack of information, fragmentation of services, complicated forms, different locations, and language and cultural barriers. A new project funded by the Mott Foundation is looking for ways to help companies make sure eligible employees know what benefits they can receive. For more information about the study, contact Robert Zdenek, lead consultant to the project at (301) 263-2715, email [email protected].