The retailer had declined to follow the subpoena.
The organization originally demanded the documents following a sweep of downtown Los Angeles garment sewing factories that found goods destined for Forever 21 stores were produced in violation of overtime, child labor or minimum wage statues. The retailer is being investigated under the “hot goods” provision of the Fair Labor Standards Act.
In the case, Forever 21 had argued the information sought from the subpoena was irrelevant to the investigation, calling it an abuse of process. If that argument was to be found insufficient, it also requested a protective order to prevent the release of trade secrets, a request that was ultimately denied because the retailer failed to show good cause for the action.
“Garment workers historically have been subjected to exploitation and paid substandard wages,” M. Patricia Smith, solicitor of labor, said in a statement. “The order underscores that everyone in the supply chain has a responsibility to ensure that workers receive the federal minimum wage and earned overtime, and it demonstrates our commitment to enforcing those protections despite tactics designed to obscure the employment relationship.”
The Department of Labor has conducted more than 1,500 similar investigations in Southern California during the past five years, finding violations 93 percent of the time. These violations include paying workers less than the state’s minimum wage, which is $7.25 per hour, and a failure to pay overtime. – Jon Ross
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now