Findings from an investigation by the U.S. Department of Labor warn the ones paying it are garment workers. The industry is largely made of workers who are women, immigrants, and people of color.
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"We're hoping that the consumer takes notice here as well, because it's really important that they understand that they play a role here in this," said regional administrator for the U.S. DOL Wage and Hour Division Ruben Rosalez, who supervises western states.
In 2022, the DOL investigated 50 contractors at random for its Southern California Garment Workers Survey.
The survey found that roughly 80% of the contractors are in violation of one or more of the Fair Labor Standards Act provisions, 64% of contractors did not keep accurate time and pay records.
More than 50% paid workers off the books and falsified or did not provide records, and 32% continue to pay piece rates, despite a new California law that prohibits it, according to its findings.
The survey also found some workers are getting paid less than $2 an hour.
"It's sad that it's 2023 and we find a case where someone's making $1.50 an hour in Los Angeles," said Rosalez.
The agency recovered just over $890,000 in back wages and liquidated damages; about $3,000 per worker.
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"Los Angeles is the hub for anything that is related to sweatshops and garment," said Rosalez. "I use the word 'sweatshops' because we're still finding those conditions that are unsafe, long hours in very, very poor conditions for workers."
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, according to a news release.
The DOL said it is also working with state authorities. In California, any person contracting for garment manufacturing can be held liable for wage theft in their supply chain.
The division stressed it enforces the law regardless of a worker's immigration status and can speak confidentially with callers in more than 200 languages.
It has a free helpline at 866-4US-WAGE (487-9243).