Los Angeles Apparel Manufacturers Fined for Labor Violations

Manufacturing

As of Thursday, September 14, 2017

The California Labor Commissioner’s Office cited 14 Los Angeles garment manufacturers and contractors for labor law and garment registration violations following inspections last month in the Los Angeles area.

The companies were fined $372,135 for the violations, including $275,835 in fines and stop orders for seven employers operating without workers’ compensation insurance coverage.

Fourteen operators were cited $34,300 for garment regulation violations that included failure to register as a garment manufacturer, failure to display their garment registration or maintain required records.

Investigators also confiscated 5,725 illegally manufactured garments with an estimated street value of $103,000 from six of the businesses.

“Garment manufacturers who thwart the law threaten workers’ rights and undermine honest employers in the industry, making it difficult for legitimate businesses to succeed,” California Labor Commissioner Julie Su said. “These illegal entities should take note: We will shine a light on the underground economy and those who contract with unregistered contractors will also be held accountable.”

The Labor Commissioner’s Office is also pursuing wage-theft investigations on those employers who failed to pay proper wages under the California Labor Code.

The Garment Manufacturing Act of 1980 requires that all industry employers register with the Labor Commissioner and demonstrate that they have workers’ compensation insurance coverage. Garment manufacturers who contract with unregistered entities are automatically deemed joint employers of the workers in the contract facility.

Clothing confiscated from illegal operations cannot be sold and will be donated to a nonprofit agency that works with homeless and domestic violence shelters in the Los Angeles area.