Orange County Garment Factory Cited for Back Wages
After an investigation by federal officials, an Orange County garment factory that makes women’s clothing for retail chains such as Forever 21 and Ross Dress for Less was cited for not paying minimum wage or overtime to its more than 27 employees.
U.S. District Court Judge A. Howard Matz issued a preliminary injunction on April 23 barring Laundry Room Clothing Co., located in Westminster, Calif., from shipping any of its garments until the back-wage issue is resolved. The company also must agree to provide evidence going forward that workers’ wages have been paid on a weekly basis until Oct. 31.
“We have taken this action because this manufacturer has repeatedly and knowingly failed to properly pay its workers,” said George Friday Jr., regional administrator of the Wage and Hour Division’s West region.
Laundry Room Clothing has paid some of the back wages owed its employees, said Jesse Atilano, whose company, Labor Law Inc., works for Laundry Room Clothing.
Atilano said the garment manufacturer paid $81,500 in back wages and taxes owed the employees, who worked from Feb. 16 to March 31, 2010. “We had a financial problem that came up, and we were trying to pay the employees,” Atilano said on behalf of the factory’s owners, Milton and Sharon Kaneda. “We willingly participated in the investigation.”
The federal government is still inspecting records for March to October 2009 and from December 2009 to January 2010.
The Fair Labor Standards Act requires that employees be paid the federal minimum wage of $7.25 an hour, although California’s minimum wage is $8 an hour. The FLSA prohibits shipment of goods in interstate commerce that were produced in violation of minimum wage and overtime regulations.—Deborah Belgum
