Some California Garment Workers Earn as Little as $1.58 per Hour, Department of Labor Reports

Over 80% of the U.S.-made garments are manufactured in Los Angeles. There are roughly 40,000 garment workers in Los Angeles, most of whom are immigrants from Central America and Mexico. Unfortunately, according to a survey conducted by the Department of Labor’s Wage and Hour Division, garment workers who make garments sold by leading fashion retailers continue to be taken advantage of. The survey found that many employees working in what officials referred to as “sweatshops” continue falling victim to wage theft and unlawful pay practices. The 2022 Southern California Garment Survey released by the Department of Labor is based on information gathered from over fifty contractors and manufacturers. The manufacturers and contractors included in the survey produced items for several retailers last year, including Lulus, Nordstrom, Bombshell Sportswear, Von Maur, Socialite, Dillard’s, and Neiman Marcus.

According to the report, officials found violations of the FLSA in 80% of their inquiries. The FLSA is a federal law that establishes, among other things, minimum wage, overtime pay, and recordkeeping standards. Over half of the time, officials claimed contractors were unlawfully paying workers off the books without payroll records or with fake documents. The Department of Labor also discovered that at least 32% of contractors were using the piece-rate system. Piece-rate pay was barred in California at the start of 2022. This happened after Governor Newsom signed into law Senate Bill 62 towards the end of 2021. Additionally, the Department of Labor found that 64% of contractors did not keep accurate time and pay records. 28% of contractors kept no records, whereas 36% kept falsified time and pay records.

In one particularly shocking case, the Department of Labor found that a contractor paid workers $1.58 an hour. This is 22% of the federal minimum wage and 10% of California’s minimum wage.

As part of the survey, the Department of Labor’s Wage and Hour Division carried out time and pricing studies and determined that manufacturers did not pay contractors enough sewing fees. According to the report, the fees paid by manufacturers were not enough for contractors to pay workers mandatory minimum wages. The Department of Labor found that the average fee was almost $3 below the amount needed per garment. Only contractors who received a sewing fee of $17.50 or above managed to pay their workers in accordance with the law.

Investigations by the Department of Labor’s Wage and Hour Division’s offices in Southern California revealed over $892,000 in back wages and liquidated damages for close to 300 workers. However, according to Protect LA’s Garment Jobs, a campaign by the Garment Worker Center, this number only accounts for a small fraction of the 40,000 garment workers in Los Angeles.

Regarding whether garment workers in Southern California will be paid more, the division said it secured agreements with manufacturers to monitor contractors to ensure they comply with the law.

Contact a California Employment Lawyer

If an employer has been paying you less than the minimum wage, you may have a wage theft claim. Contact a California employment lawyer near you for legal guidance.