DIR Revokes Licenses for Two Contractors
As part of its aggressive crackdown on garment manufacturers that operate outside the law, California’s Division of Labor Standards Enforcement (DLSE) revoked the licenses of two garment shops and denied renewal of licenses for two other apparel manufacturers.
Korea Sewing Machine Inc. and Young Crystal Inc. were ordered to surrender their garment registration certificates immediately to the DLSE, part of the San Francisco–based Department of Industrial Relations. DNK Fashion Inc. and Cicci Inc. had their applications for renewal denied. All four companies are based in Los Angeles, according to Dean Fryer, a spokesperson for the department.
The garment manufacturing registrations are required for companies to operate legally in the state. Korea Sewing and Young Crystal both had a history of operating in violation of the law and receiving citations for failure to pay minimum wage and other penalties, Fryer said.
Korea Sewing, DNK Fashion and Cicci could not be reached for comment. A telephone number listed for Young Crystal was changed and used by another business.
The state agency said garment makers can lose their registration if they do not show necessary character, competency and responsibility. Fryer said the agency has shut down apparel companies in the past for various reasons, including the failure to pay workers’ compensation insurance. “I think this is one of the few times that we’ve taken the major [steps] that we’re taking because of disregard for citations that we have issued or attempts to bring an employer or garment manufacturer into compliance,” he said. Fryer added that the agency is taking the same approach in other industries such as construction, agriculture and restaurants.
The four apparel companies have the right to file a petition for writ of mandate with a civil court. Fryer could not say whether any of the companies have made any filings. —Khanh T.L. Tran
