Factz

CONFIRMED

Clothing Workers in Los Angeles Paid as Little as $1.58 an Hour

A new report from the US Department of Labor is shining a light on the lie that is ethical buying from “Made in USA” companies.

The Labor Dept did a random sweep of 50 garment manufacturers in Los Angeles, and found that 80% of them were breaking wage and hour laws. Additionally, 64% of them did not keep accurate time and pay records, while over half paid workers off the books or falsified or did not provide that information.

The contractors they swept provide clothing for major national brands including Dillard’s, Lulus, Neiman Marcus, Nordstrom, Socialite, Stitch Fix and Von Maur.

Around one-third of the manufacturers paid workers according to how many items they produced, rather than hourly. This type of compensation was outlawed in California over a year ago. Paying per item often leads to wages that are below minimum wage. One contractor was found to pay workers just $1.58 an hour.

Nordstrom said that they fixed the issue with their supplier as soon as the pay violations were made known, saying in a statement to CBS News that they are “committed to supporting the health, safety and human rights of everyone in our value chain, and we expect all Nordstrom suppliers to adhere to the standards outlined in our Partner Code of Conduct in addition to applicable laws and regulations.”

Other companies did not respond to CBS News’ requests for statements.