The Southern California garment industry is under scrutiny after a U.S. Department of Labor report released last month highlighted the prevalence of labor rights violations.
While many consumers believe a ‘Made in USA’ label—at national retailers such as Lulus, Neiman Marcus, and Nordstrom, for example—ensures workers earn at least minimum wage, data compiled in the report, via 50 randomly conducted compliance investigations in 2022, indicated otherwise.
According to the report—released March 22—violations in terms of paying minimum wage were discovered in 80 percent of investigations, and 64 percent of contractors did not keep accurate time and pay records.
Wage theft—meaning when employees fail to receive the compensation owed through contract, state, or federal regulation—and the use of prohibited practices, including paying workers per item instead of by the hour, were additionally reported 32 percent of the time….