‘Sweatshops:’ Some California garment workers being paid as little as $1.58 per hour, Southern California Garment Survey finds

Category: GARMENTS

Country: United States

By Marina Pitofsky
USA TODAY
1st Published 3:54 p.m. ET April 6, 2023
Updated 4:57 p.m. ET April 6, 2023

A survey of garment-sewing manufacturers in Southern California found that some employees were working in what officials called “sweatshops,” with certain workers making as little as $1.58 per hour.

The Department of Labor’s Wage and Hour Division released its 2022 Southern California Garment Survey, based on data from 50 garment contractors and manufacturers.

“Despite our efforts to hold Southern California’s garment industry employers accountable, we continue to see people who make clothes sold by some of the nation’s leading retailers working in sweatshops,” Wage and Hour Regional Administrator Ruben Rosalez said in a news release.

“Many people shopping for clothes in stores and online are likely unaware that the ‘Made in the USA’ merchandise they’re buying was, in fact, made by people earning far less than the U.S. law require,” he added. 

Here’s what you need to know.

What did officials find?
Officials said they found that 80% of contractors were in violation of one or more parts of the Fair Labor Standards Act, which establishes factors such as minimum wages, overtime pay, employment standards for minors and more. 

More than 50% of the time, officials alleged that employers were illegally paying workers part or all of their wages off the books, without payroll records or with forged documents.

At least 32% of contractors were paying garment workers in so-called piece-rate wages, which was barred in California at the beginning of last year. Gov. Gavin Newsom signed a bill into law mandating hourly pay for garment workers. 
In one case, investigators alleged a contractor paid multiple garment workers as little as $1.58 per hour.

The Department of Labor’s Wage and Hour Division said sewing fees that were paid by clothing manufacturers were on average “not enough for the contractors to properly pay their workers’ required minimum wages.” 

“Studies determined the average sewing fee was $2.75 below the amount needed per garment for sewing contractors to comply with federal wage standards,” the Department of Labor explained.

Did clothing stores employ the workers?
The survey was of garment-sewing contractors and manufacturers. However, the Department of Labor did confirm that “Contractors and manufacturers included in the survey produce garments for sale by national retailers that include Bombshell Sportswear, Dillard’s, Lulus, Neiman Marcus, Nordstrom, Socialite, Stitch Fix and Von Maur.”

USA TODAY has reached out to the stores for comment.

Pandemic workers face another hazard: wage theft

Will workers be paid more?
Investigations by the Wage and Hour Division’s offices in Southern California “led to the recovery of more than $892,000 in back wages and liquidated damages for 296 workers,” the Department of Labor confirmed. 

The Wage and Hour Division also said it “secured agreements with manufacturers” to ensure that they’re complying with federal laws. The Department of Labor in a statement to USA TODAY said manufacturers agree to conduct monitoring and review time cards and payroll, among other steps.

Courtesy: https://www.usatoday.com/story/money/2023/04/06/sweatshops-california-garment-workers/11615101002/