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LA companies investigated for wage violations

A number of business owners in California and across the United States are required to provide employees with certain benefits, including fair wages and workers’ compensation coverage. Workers who are injured on-the-job have the right to receive free medical treatment for their injuries. There are companies, however, who may attempt to bypass these laws in an attempt to hold on to more money.

The Garment Manufacturing Act of 1980 is just one of these laws regulating the industry, requiring employers to register with the Labor Commissioner, carry workers’ compensation insurance and provide at least minimum wage to workers in the facilities. In July, the California Labor Commissioner’s Office initiated an investigation into six garment contractors working in the Los Angeles area. During the case, investigators found that 57 employees earned less than minimum wage while working up to 65 hours a week. Furthermore, two employees were working in violation of child labor laws. Four of the companies did not provide workers’ compensation to their employees.

The companies were cited $573,704 for the violations, which included a scheme to operate illegally under one license in order to avoid carrying out the labor law requirements. The owner of one company would charge the other company owners a fee to use his license and workers’ compensation registration.

People have the right to work in a safe environment and earn a fair wage for their labor. A California workers’ compensation attorney may be helpful in answering questions regarding wage and hour violations.

Source: Insurance Journal, “California cites garment contractors $570K, some lacked workers’ comp,” Don Jergler, Sept. 10, 2018.

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