Nordstrom, Neiman Marcus, and Other Brands Accused of Buying Clothes from a California ‘Sweatshop’ That Pays Workers $1.58 an Hour

Photo Credit: Unsplash/ Rio Lecatompessy

The Department of Labor is cracking down on U.S. clothing manufacturers who are accused of paying their workers $1.58 an hour for making clothes for brands like Nordstrom, Neiman Marcus, and more, Insider reported. 

According to a report published by the outlet, federal investigators found out that 80% of contractors and manufacturers in Southern California were

“breaking one or more provisions of US labor law.”

Some are accused of falsifying their payroll records while some had no documentation at all. 

The department said one manufacturer who makes clothes for Nordstrom, Neiman Marcus, Stitch Fix, and Von Maur, was paying their workers an hourly rate of just $1.58. In 2021 California banned

“piece rate wages,”

where employees are paid based on how much they produce, however, the Department of Labor says it’s still a big issue. 

“Despite our efforts to hold Southern California’s garment industry employers accountable, we continue to see people who make clothes sold by some of the nation’s leading retailers working in sweatshops,”

Ruben Rosalez, part of the department’s wage and hour division, said in a statement.

“Many people shopping for clothes in stores and online are likely unaware that the ‘Made in the USA’ merchandise they’re buying was, in fact, made by people earning far less than the US law requires.”

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