Workers making garments for many leading fashion retailers in the US often continue to be victims of wage theft and employers’ illegal pay practices, with many workers being paid a measly $1.58 per hour, the US Department of Labor has revealed.
- The 2022 Southern California Garment Survey has found that more than 50 contractors and manufacturers have violated the Fair Labor Standards Act.
The Investigation: In 80% of its investigations, and more than 50% of the time, the Department's Wage and Hour Division found employers illegally paying workers part or all their wages off the books, with payroll records either deliberately forged or not provided.
- Division investigators learned a contractor paid garment workers as little as $1.58 per hour.
- The fiscal 2022 survey also found 32% of contractors paying garment workers piece-rate wages, a practice prohibited by the State of California on 1 January 2022.
- In FY 2022, investigations by the division’s Southern California district offices in Los Angeles, San Diego and West Covina led to the recovery of more than $892,000 in back wages and liquidated damages for 296 workers.
- The division also secured agreements with manufacturers to monitor contractors to ensure FLSA compliance.
- As part of the survey, the division conducted time and pricing studies and found that sewing fees paid by manufacturers to contractors were — on average — not enough for the contractors to properly pay their workers’ required minimum wages.
- Specifically, the study determined the average sewing fee was $2.75 below the amount needed per garment for sewing contractors to comply with federal wage standards. Contractors who paid employees in compliance with the law received a higher sewing fee, ranging from $17.50 to $35 per garment.
The brands: Contractors and manufacturers included in the survey produce garments for sale by US retailers that include Bombshell Sportswear, Dillard’s, Lulus, Neiman Marcus, Nordstrom, Socialite, Stitch Fix and Von Maur.
What they said:
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 requires. The findings of the Southern California Garment Survey highlight why greater outreach and stronger enforcement are needed to combat the inequities that exist in the garment and fashion industries.
— Ruben Rosalez
Wage and Hour Regional Administrator, San Francisco
US Department of Labor
