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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-7317
In a landmark decision, a U.S. federal court blocked the shipment of
"hot goods" by a New York City garment manufacturer because of labor law
violations, the Labor Department announced today.
The U.S. District Court for the Southern District of New York barred
garment manufacturer Fashion Headquarters, Inc., from shipping garments that
were made in violation of the minimum wage and overtime requirements of the
Fair Labor Standards Act (FLSA). The court also ordered the company to consider
whether pricing is sufficient to pay workers the minimum wage before
contracting with sewing shops to make their garments. In granting the
injunction, the judge cited the likelihood of future violations because there
is the "better than 50 percent probability that any apparel contractor in New
York City is in violation of the FLSA."
"I am very pleased with this strong action by the court. It is further
proof that American society will not tolerate abuse of garment workers," said
Labor Secretary Alexis M. Herman. "While I hope we can work with the industry
to end sweatshop conditions, my department will not hesitate to pursue
egregious violators with every means at our disposal, including court action."
The suit stems from the finding by the department s Wage and Hour
Division in November 1997 that almost $214,000 in back wages were owed 73
workers at MSL Sportswear, Inc., and Laura & Sarah Sportswear, Inc., shops
owned by Lai Fong Yuen a/k/a Lena Mone. Workers were not paid regularly during
August, September, October or November and had not received proper overtime
payments since May 1997.
Fashion Headquarters was one of several manufacturers buying goods from
these shops. To date, the department has been successful in restoring nearly
$115,000 in back wages to those workers. Fashion Headquarters is the only
manufacturer that has not yet made restitution.
The department sued Fashion Headquarters when the company refused to
cooperate with the department by stopping shipment of "hot goods" made in
violation of the FLSA or by providing requested shipping and other information.
Fashion Headquarters was producing garments for Lerner, a subsidiary of The
Limited, which immediately demanded that Fashion Headquarters correct all
violations, implement an effective compliance program and pay the back wages
owed to the workers.
The court also ordered Fashion Headquarters to obtain written assurances
from each of its contractors that they understand the minimum wage and overtime
laws, that they will permit Fashion Headquarters to inspect their payroll
records and that goods produced for the company are made in compliance with the
FLSA. Fashion Headquarters must inspect contractor payroll records whenever it
has reason to believe there have been FLSA violations, and if it finds
violations, immediately notify the department and cease shipment of any goods.
As a result of the department s uncovering of violations by MSL
Sportswear, Inc., and Laura & Sarah Sportswear, Inc., in December, four
national retailers, Wal-Mart, Kmart, Nordstrom and The Limited, agreed to step
up their efforts to ensure that their private-label fashion lines are not made
in sweatshop conditions and to increase unannounced monitoring of their
contractors.
Archived News Release--Caution:
information may be out of date.
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