San Francisco, CA
USDL-112/August 25, 2000
Wage and Hour Division
Contact: Tino Serrano,
415-975-4742 For Release: 2:00 PM
ONLY ONE-THIRD OF SOUTHERN CALIFORNIA GARMENT SHOPS IN COMPLIANCE WITH FEDERAL LABOR LAWS
The U.S. Department of Labor has found that
only one in three garment manufacturing shops in the Los Angeles area are in
compliance with the Federal minimum wage and overtime law. The results of the
department’s 2000 Southern California garment compliance survey were made
public at a meeting with stakeholders in Los Angeles today.
"We are disappointed that the level of compliance with some of our most
basic labor standards continues to be this low in Southern California," said
Bernard E. Anderson, Assistant Secretary for Employment Standards. "The
department has stepped up enforcement, broadened compliance education, and
sought new partners to improve compliance in this industry. We are continuing
to analyze the data gathered in this survey and broaden our dialogue with the
industry to determine how to enhance our strategies and enlist others in our
campaign to eliminate sweatshops."
This fourth investigation-based survey of 67 garment production shops is
a statistically valid sampling of the garment industry in Southern California.
The survey by the Employment Standard Administration’s Wage and Hour
Division found that the overall level of compliance with the minimum wage,
overtime and child labor requirements of the Fair Labor Standards Act (FLSA) is
33 percent. This rate of compliance is somewhat better than in 1994 when the
compliance rate was first measured at 22 percent, but the level of compliance
has stagnated since 1996.
The survey found that the number of shops being monitored for compliance
with labor laws by their manufacturers remains high – at about 70 percent.
The survey reconfirms that compliance monitoring does promote higher levels of
compliance. Only about 10 percent of the shops not monitored were in compliance
with the minimum wage and overtime requirements. The compliance rate of shops
subject to a thorough monitoring program was 44 percent—four times
greater—but still quite low.
"The Department continues to believe that monitoring of contractor shops
by manufacturers can be an important factor in improving compliance," T.
Michael Kerr, the Wage and Hour Administrator, said. "However, monitoring is
only one part of what must be a much more comprehensive solution to the very
pervasive compliance problems in this industry, and our survey findings
indicate that the quality of monitoring is suspect."
This year, for the first time, the Southern California survey also
included a statistically valid sample of 35 firms previously investigated and
found in violation. The level of compliance for these prior violators was
determined to be 37 percent—only slightly higher than the overall level of
compliance.
"Clearly, the survey results compel us to look at implementing new and
more effective enforcement tools, including using litigation to pursue civil
money penalty assessments against repeat and willful violators. We will
vigorously enforce the ‘hot goods’ provisions of the FLSA, work to
disgorge the ill-gotten gains from the sale of ‘hot goods’ and obtain
and enforce injunctions to assure compliance by garment contractors and
manufacturers. Our strategy also includes more referrals to the U.S. Attorneys
for consideration of criminal prosecutions," said Kerr. "We need to impact all
levels of the industry—contractor shops, manufacturers and
retailers—to help end the exploitation of garment workers in the United
States."
The two survey components found nearly $900,000 in minimum wage and
overtime back wages due to more than 1400 employees for the time periods
covered by the investigations. Three firms were cited for illegally employing
three minors, and five firms were cited for illegally employing homeworkers. To
date, more than $400,000 in fines have been assessed for repeat and willful
violations of the FLSA.
The Wage and Hour Division’s West Covina District Office
coordinated the survey in conjunction with the State of California’s
Department of Industrial Relations’ Labor Standards Enforcement and
Occupational Safety and Health Divisions.
Information about the Department’s "No Sweat" program may be found
at http://www.dol.gov/esa/nosweat/sweat.htm.
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