Some Clothing Workers in Los Angeles Earn as Little as $1.58 an Hour, Labor Department Finds [View all]
Source: CBS News
Fashionistas who buy garments labeled "Made in USA" may be unwittingly contributing to workers' wage theft, according to a new report from the U.S. Department of Labor.
A random sweep of 50 garment manufacturers in Los Angeles found that 80% were breaking wage and hour laws, regulators said. The agency also found that 64% didn't keep accurate time and pay records, while more than half either paid workers off the books or falsified or didn't provide such information.
More than half the contractors paid workers off the books and either falsified time and pay records or didn't provide them, according to the agency.
The contractors made clothing for major national brands including Dillard's, Lulus, Neiman Marcus, Nordstrom, Socialite, Stitch Fix and Von Maur, the Labor Department said.
About one-third of the apparel makers paid their workers according to how many items they produced, instead of an hourly rate — something California explicitly outlawed more than a year ago. Paying workers a "piece rate" often leads to sub-minimum wages. One contractor paid workers $1.58 per hour, the agency's investigation found.
Read more: https://www.cbsnews.com/news/garment-factory-los-angeles-pay-minimum-wage/
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