Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

OPA Press Release: U.S. Department of Labor Announces Latest Los Angeles Garment Survey Results [05/27/1998]

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The U.S. Department of Labor today announced that the level of compliance with labor laws in the garment industry in the Los Angeles area is unchanged since 1996. The results of the department's 1998 Los Angeles Garment Compliance Survey were made public at a Stakeholders Forum in Los Angeles today.

This third survey of the Los Angeles garment industry found that the overall level of compliance with the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) remains unchanged from the 1996 level of 39 percent. The surveys are conducted by the department's Wage and Hour Division.

The 1998 survey also found that effective monitoring of contractor shops increases compliance and new businesses and businesses which pay "off the payroll" have lower levels of compliance.

"The results of this survey show that much more work needs to be done; we need greater cooperation from all levels of the industry," said Secretary of Labor Alexis M. Herman. "We are, however, encouraged to find compliance rates in contractor shops increase as the degree of the monitoring by manufacturers is enhanced."

For the first time, this year's survey obtained new data on how different levels of monitoring affect compliance. The 1998 survey indicates that compliance rates increased in correlation with better, more complete monitoring programs. Shops subject to more thorough monitoring had a level of compliance nearly three times that of nonmonitored shops.

"Clearly, the 1998 survey confirms that effective monitoring works to significantly improve garment workers' chances of being paid what they are entitled and reduces manufacturers' potential liability for "hot goods" actions," said Secretary Herman. "We recognize those Los Angeles firms which have been willing to incorporate monitoring, and especially effective monitoring, into the way they do business."

The department invited all levels of the industry contractors, manufacturers, retailers, worker groups, academia and other interested parties to the first-ever Stakeholders Forum in Los Angeles to present the findings of the survey. The forum is also intended to obtain input from all parties as the department develops its plan and identifies steps that stakeholders can and should take to increase compliance.

Secretary Herman said, "We have been looking forward to advancing our dialogue with the industry based on these new data. The level of compliance is obviously unacceptable. We have been working very hard to bring long lasting solutions and we are committed to doing more. And the industry, too, must do more. We need everyone's input, cooperation and commitment as we continue to develop a broad strategy to change behavior to ensure that these vulnerable workers do not continue to be exploited."

During this Administration, the department instituted its "No Sweat" program a multi-prong strategy of enforcement, partnership, education and recognition to eliminate sweatshops in the U.S. Compliance surveys are conducted in the major garment centers to help measure the impact of the program.

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Information about the Department's "No Sweat" program maybe found at http://www.dol.gov/dol/esa/public/nosweat/nosweat.htm.

Archived News Release--Caution: information may be out of date.