Contractor for major clothing lines cited for $5 mn in unpaid wages

25 Jul '08

5 min read

“Our message to retailers and manufacturers is that cursory inspection in monitoring factories is not enough. We in government are getting more aggressive in ensuring that suppliers abide by the law. While you may require your suppliers to abide by strict codes of conduct, these codes do workers no good if they are not aggressively enforced,” Commissioner Smith continued. “By doing your part and with the State Labor Department continuing to enforce the laws, we can curb these unlawful practices.”

While New York State had significant success in recent years in enforcing wage and hour laws – with an increase of 37 percent in minimum wage underpayments in 2007 compared to prior years – this success stands in contrast to the federal government's enforcement. Last week, the U.S. Government Accountability Office released a highly critical report of current enforcement practices at the federal level.

According to the report, enforcement actions have decreased by 37 percent over the past 10 years, while the number of workers and the companies who employ them have actually increased. The report also states that the federal government is not focusing enough attention on low-wage industries, where labor law infractions are most likely to occur.

Recognizing the need for more aggressive enforcement, the Department of Labor's field investigative staff, about half of whom are bilingual, have recently adopted new investigative techniques. These methods include conducting more surveillance on weeknights and weekends, interviewing employees off-site, and obtaining evidence directly from the employer and from third party witnesses.

New York State's minimum wage is $7.15 per hour, and employers are required to pay overtime for weekly hours past 40 at 1½ times the employee's regular pay rate. The State Labor Department encourages employers and workers to contact the department about wage and hour issues. Investigators will answer any questions regarding New York's labor laws.

This investigation was handled by Investigator Haing Bo Kim of the Apparel Industry/Fair Wages Task Force with the assistance of Investigators Yong-Soon Hwang and Young Cho, under the supervision of Lorelei Boylan, the Task Force's Director of Strategic Enforcement in the Division of Labor Standards.

New York State Department of Labor

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