Nordstrom, Neiman Marcus and other brands were buying clothes from a 'sweatshop' that paid just $1.58 an hour — in California
Clothes with a "Made in the USA" tag account for a small fraction of sales in the American market, typically coming with a higher price tag. But when federal investigators looked at 50 contractors and manufacturers in Southern California, the heart of the domestic garment industry, they discovered that 80% were breaking one or more provisions of US labor law, according to the report published Wednesday.
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.
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