Legal News

10 Garment Contractors Found Violating Federal and State Wage Laws
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)


In a press release from the United States Department of Labor in San Francisco, the Wage and Hour Division and the California Division of Labor Standards Enforcement discovered violations of state and federal labor laws by 10 garment contractors who were inspected during a sweep of one building in downtown Los Angeles earlier in 2012.


The violations discovered were of the Fair Labor Standards Act’s overtime, minimum wage and record-keeping provisions. The investigation yielded more than $326,000 in back wages for some 185 employees.

“The extent of the violations discovered by these investigations was disappointing. Retailers need to actively ensure that clothes produced in the U.S. for sale to the American public are made by workers who are paid at least the U.S. minimum wage and proper overtime,” said Secretary of Labor Hilda L. Solis. “Federal, state, local and industry stakeholders can work together to foster a vibrant, and compliant, domestic fashion industry.”

Julie Su, the labor commission for California, said in the press release, “The garment industry is a vital part of the economy of Los Angeles and California. State law prohibits garment manufacturers from operating without a proper license, from violating state minimum wage and overtime laws, and from playing shell games to avoid paying workers properly. We are intent on making sure that sweatshop practices are eliminated so that consumers can proudly purchase garments made in L.A., honest companies can compete and garment workers can thrive.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The investigations, which were not announced, occurred at 830 S. Hill St. in downtown Los Angeles and were carried out by federal and state investigators. The reason the building was targeted was that there were earlier investigations at that location that discovered labor violations and possible conditions comparable to a sweatshop.

The investigation discovered that a lot of the employees were paid by piece instead of by minimum wage or overtime pay. This means that the employee was paid per piece of garment that he or she was able to sew or cut. The investigation found that the wages earned by the employees averaged out to less than $6.50 per hour, which is below the federal minimum wage of $7.25 per hour. The California minimum wage is $8 per hour.

The same employees were not paid the overtime value of time and one-half their regular pay rates for hours they worked over 40 in one week. The investigation found falsification of time cards, failing to keep accurate records and under-reporting. According to the press release, the companies receiving the garments made by the underpaid employees included the following:

Aldo Group Inc., Burlington Coat Factory Warehouse Corp., Charlotte Russe Holding Inc., Dillard’s Inc., Forever 21 Inc., Frasier Clothing Co. (Susan Lawrence), HSN Inc. (Home Shopping Network), Rainbow Apparel Inc., Ross Stores Inc., TJX Cos. Inc. (TJ Maxx and Marshall’s), Urban Outfitters Inc. and The Wet Seal Inc.


Interesting Legal Sites You May Like




Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney


Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now


Associate Attorney


Attorneys helping people........Brayton Purcell LLP is an extremely busy plaintiff\'s litigation pra...

Apply now

Casualty Attorney II


Kuluva, Armijo & Garcia is seeking an experienced and skilled California litigator for the position ...

Apply now

Legal Assistant / Paralegal


Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now


To Top