News Release

LABOR DEPARTMENT RECOVERS $247,000 IN BACK PAY FOR SOUTH EL MONTE GARMENT WORKERS

Clothing made for sale at major retailers

A Labor Department investigation of a South El Monte garment contractor producing clothing for several major national retail chains resulted in fines of $20,000, and $247,000 in back wages for 138 workers for a two-year period.

Investigators with the Labor Department's Wage and Hour Division cited Emeraidtex, Inc., at 10626 East Rush St., and manager Steven Chang for violating federal minimum wage and overtime regulations. Emeraldtox, Inc. assembles garments exclusively for Jowaft Garment Factory, Inc., which provides finished clothes for a variety of retailers including Eddie Bauer, The North Face, Reebok, Jones New York and the Gap.

"To assist apparel workers, the department has established a rapid response unit to investigate complaints in the garment industry," said Jerry Hall, district director of the Wage and Hour Division in West Covina. "in order to have the greatest impact, we balance this enforcement work with an aggressive education component to inform employees and employers about the wage and hour laws." Hall explained that Emeraldtex paid a $20,000 civil money penalty in addition to the back wages because the company had prior knowledge of federal minimum wage and overtime requirements but disregarded these requirements.

The Wage and Hour Division investigated Emeraidtex after workers complained that they were asked to perform work at home for which they were not paid and that company managers punched employee time cards to indicate shorter workdays than actually performed. The investigation confirmed the illegal practices and also revealed that some workers were paid in cash, were paid less than the federal minimum wage of $5.15 per hour for piece-work, were not paid time and a half for hours over 40 in a workweek and that the employer unlawfully deducted a portion of cash wages paid.

In a court order entered in U.S. District Court in Los Angeles on Aug. 4, Emeraldtex agreed to pay $247,069 in back wages to 138 employees for the two-year period ending Dec. 17, 1998. Emeraldtex also signed a consent judgment agreeing that in the future the company will pay at least the minimum wage for all hours worked, compensate employees for any work hours in excess of 40 within a seven-day workweek at no less than one and one-half times their regular pay; and maintain records of employees' wages, work hours and other conditions of employment.

The garment industry is one of several low-wage industries which are the focus of the Wage and Hour Division. The others are agriculture, health care, restaurants and janitorial services. All are industries in which workers are often unaware of their rights and are frequently exploited.

The Wage and Hour Division uses education, voluntary efforts and enforcement to get companies to comply with labor laws. The office recruits employees fluent in languages prevalent among workers in these industries, including Spanish, Chinese, Vietnamese and Korean.

The Wage and Hour Division enforces the Fair Labor Standards Act, which covers payment of the minimum wage and overtime and child labor laws. The office also enforces the Family and Medical Leave Act and protections for migrant and seasonal farm workers. Employees and employers with questions should call the West Covina District office at (626) 966-0478.