Nordstrom, Neiman Marcus and other brands were buying clothes from a 'sweatshop' that paid just $1.58 an hour — in California
A conscientious consumer may think that buying clothes made in America automatically means wages are better than those in the developing world.
Over a third of garment makers falsified their payroll records, investigators found, while more than a quarter kept no documentation at all. And while California in 2021 banned piece rate wages, where workers are paid based on how much they produce, the Department of Labor discovered that 32% of those investigated were still doing it, resulting in take-home pay that sometimes fell below the legal minimum.
"Despite our efforts to hold Southern California's garment industry employers accountable, we continue to see people who make clothes sold by some of the nation's leading retailers working in sweatshops," Ruben Rosalez, part of the department's wage and hour division, said in a statement.
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