US Department of Labor recovers over $1 million for garment workers

The US Department of Labor has announced the recovery of over one million dollars in back wages and damages for 165 garment workers in Los Angeles. Following an investigation into malpractices by sewing contractors, the settlement is considered the largest for Californian garment workers. The four contractors involved, Good Cash LLC, Premium Quality Apparel LLC, and their associated entities, violated labor laws by willfully failing to pay overtime wages, falsifying payroll records, and issuing fake checks.

The investigation revealed that these contractors, owned by individuals including Ramon Tecum and Marisela Romero, had not paid overtime wages to employees who worked an average of 52 hours per week. They also falsified records and issued fake checks to conceal their illegal practices. During a court-authorized inspection, Tecum, Romero, and others interfered by pretending to be workers, shutting off power, and instructing employees to leave the worksite.

As a result, the Department of Labor enforced a “hot goods” hold on apparel produced by these contractors’ employees, affecting the brand I Am Beyond, which did business under Beyond Yoga. The brand agreed to pay back wages and damages, entering into an enhanced compliance agreement to ensure adherence to labor standards. Additionally, a consent judgment required Good Cash and Premium Apparel entities to pay $200,000 in civil money penalties for their violations.

Jessica Looman, the wage and hour administrator, emphasized the Department’s commitment to holding employers accountable across the supply chain to ensure workers receive fair pay and rights. The case highlights the vulnerability of garment workers to wage theft and exploitation in the complex employment model of the garment industry.