A San Diego silk-screening and embroidery enterprise that produces official merchandise for high-profile music artists did not pay time beyond regulation wages for 76 employees, the U.S. Division of Labor stated Monday.
King Graphics has agreed to pay $269,914 in time beyond regulation pay and liquidated damages to the affected employees as a part of a consent judgment reached final month in San Diego federal courtroom.
It additionally paid simply over $10,000 to raise a “scorching items maintain” imposed to dam the cargo of products produced in violation of the Truthful Labor Requirements Act, in response to the Division of Labor. The maintain prevented a truckload of Britney Spears T-shirts from being shipped to Goal shops, whereas different gadgets had been withheld from cargo to retailers similar to Aeropostale, Footlocker, Scorching Subject, Kohl’s, PacSun, Goal and City Outfitters.
The company says that an investigation by its Wage and Hour Division discovered that King Graphics employees didn’t obtain the required time and one-half fee for hours labored over 40 in a workweek.
“Celebrities, retailers and producers revenue from T-shirts offered for $40 or extra, whereas the low-wage employees who produce the merchandise work time beyond regulation to satisfy shopper demand and change into victims of wage theft,” stated Jessica Looman, performing administrator of the Wage and Hour Division.
The Division of Labor stated its investigation additionally checked out producers who violated the FLSA for receiving and distributing the new items. These producers cooperated with investigators and have agreed to adjust to the FLSA.
“A producer or retailer should guarantee their provide chain is freed from ‘scorching items’ — merchandise produced by employees whose authorized rights have been violated — or danger authorized legal responsibility,” Looman stated. “All events, from the entertainers to the distributors and wholesalers, ought to guarantee their income aren’t supported by employees in sweatshops, a lot of whom are immigrant girls supporting households.”