LA Garment District Raid Yields Violations at 10 Contractors
The U.S. Departmentof Labor’s Wage and Hour Division and the California Division of LaborStandards Enforcement found violations of federal and state labor laws at 10garment contractors inspected during a sweep in the Los Angeles FashionDistrict earlier this year.
In a statementreleased on Dec. 13, division investigators said they found violations of theFair Labor Standards Act’s minimum wage, overtime and record-keepingprovisions, which resulted in the recovery of more than $326,200 in back wages foran estimated 185 employees.
In August,investigators conducted unannounced sweeps of employers at 830 S. Hill St. indowntown Los Angeles, where previous investigations revealed pressing laborviolations. The violators were producing garments for more than 30retailers, including AldoGroup Inc., BurlingtonCoat Factory Warehouse Corp., CharlotteRusse Holding Inc., Dillard’sInc., Forever 21Inc., FrasierClothing Co. (SusanLawrence), HSN Inc., Rainbow Apparel Inc., Ross Stores Inc., TJX Cos. Inc. (TJ Maxx and Marshalls),UrbanOutfitters Inc. and Wet Seal Inc.
“The extent of theviolations discovered by these investigations was disappointing,” saidSecretary of Labor Hilda L. Solis in a statement from the Department of Labor.“Retailers need to actively ensure that clothes produced in the U.S. for saleto the American public are made by workers who are paid at least the U.S.minimum wage and proper overtime. Federal, state, local and industrystakeholders can work together to foster a vibrant, and compliant, domesticfashion industry.”
The investigationswere held by the Wage and Hour Division under a multi-year enforcementinitiative that focuses on Southern California’s garment industry and employersin Los Angeles and Orange counties, including businesses operating out of largegarment buildings in the Los Angeles Fashion District. Southern California isthe nation’s largest apparel-manufacturing center.
In the Augustsweep, most workers’ wages amounted to less than $6.50 per hour, falling belowCalifornia’s $8-per-hour minimum wage. (The federal minimum wage is $7.25 perhour.)
None of theemployees received the overtime for hours worked over 40 per week, as requiredunder the Fair Labor Standards Act (FLSA). A number of record-keepingviolations also were found, including falsified time cards and inaccuraterecords of actual hours worked by garment employees. The “hot goods” provisionof the FLSA prohibits interstate shipment of goods produced in violation oflabor laws. The Department of Labor requested that the brands hold the goodsuntil the violations are resolved. Several manufacturers and retailers paidpart of the back wages due for goods produced for them, according to the Department of Labor, which lifted the shipping ban for those manufacturers andretailers.
In addition, stateinvestigators issued citations to three establishments that were not registeredas garment contractors and cited them for failing to pay the statement minimumwage or overtime.
In addition,investigators found many garment employees were paid a piece rate, which meansgarment workers were paid for each piece sewn or cut.
“The garment industry is a vital part ofthe economy of Los Angeles and California,” said Julie Su, California’s laborcommissioner. “State law prohibits garment manufacturers from operating withouta proper license, from violating state minimum wage and overtime laws, and fromplaying shell games to avoid paying workers properly. We are intent on makingsure that sweatshop practices are eliminated so that consumers can proudlypurchase garments made in LA, honest companies can compete and garment workerscan thrive.”—Sarah Wolfson
