Sweeps on Garment Shops Uncover Violations
In an effort to help level the playing field in the state’s apparel manufacturing industry, California’s Department of Industrial Relations levied nearly $253,000 in fines during a three-day surprise sweep of dozens of Southern California garment shops believed to be violating state workplace laws.
From June 1 to 3, state officials made unannounced visits to 40 companies that employ a total of 609 workers in Los Angeles and San Diego. Of those, 17 companies were found to be in total compliance. The other 23 businesses received citations for violating workers’ compensation laws, failing to itemize wage statements, improperly paying overtime and other penalties.
Twelve shops were fined a total of $10,900 for operating without a garment manufacturer’s license. Inspectors confiscated garments from five companies. The biggest portion of the penalties totaled $153,710 for violation of rules related to occupational safety and health.
The Department of Industrial Relations, based in San Francisco, typically decides which companies to inspect based on past complaints to the state, referrals from other state and local agencies, and tips from legitimate employers concerned about unfair competition, said Dean Fryer, a spokesperson for the department, which oversees the Division of Labor Standards Enforcement and the Division of Occupational Safety and Health.
Fryer said that in December, January, March, April and May, the state conducted surprise inspections at several Southern California apparel companies. “We are aggressively moving forward in enforcing California’s wage and hour laws,” Fryer said. “There is an underground economy operating in California, and it’s got to stop.”
Companies that do not comply with state workplace rules can operate cheaply by not paying taxes, workers’ compensation insurance and proper wages, Fryer said. By not complying with workers’ compensation regulations, Fryer said, these companies drain the state’s Uninsured Employers Fund, supported by legitimate employers paying workers’ compensation insurance. Injured employees not covered by workers’ compensation end up using money from the fund to meet their expenses.
For several years now, California apparel manufacturers have been having a tough time competing with foreign countries such as China and India, where wages and other costs are significantly lower than in the United States.
Joe Rodriguez, executive director of the Garment Contractors Association of Southern California, said the companies discovered not complying with state regulations should also be told what they are doing right. That way, the companies’ leaders can make better decisions about running their businesses. “It should always be presented in its proper context, and it seldom is,” he said.
The sweeps are part of several efforts to crack down on the underground economy in Southern California. In November, the Los Angeles City Council unanimously approved an anti-sweatshop law requiring businesses to pay a living wage to workers who make police uniforms and other apparel and footwear worn by government employees.
In December, the Department of Industrial Relations assessed more than $1 million in fines, one of the biggest proposed penalties, on 31 apparel manufacturers and contractors during similar sweeps in Los Angeles and Orange counties.
—Khanh T.L. Tran
