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The California Labor Commissioner’s Office cited 14 garment manufacturers and contractors $372,135 for labor law and garment registration violations, including seven businesses that failed to obtain workers compensation insurance, the office reported on Thursday.
The seven businesses, which employ 170 workers in the Los Angeles garment district, were penalized $275,835 in fines and stop orders for operating without workers comp insurance coverage, according to a press release.
Investigators also confiscated 5,725 illegally manufactured garments with an estimated street value of $103,000 from six of the businesses, per the release.
“Garment manufacturers who thwart the law threaten workers’ rights and undermine honest employers in the industry, making it difficult for legitimate businesses to succeed,” said Labor Commissioner Julie A. Su in a press statement. “These illegal entities should take note: We will shine a light on the underground economy and those who contract with unregistered contractors will also be held accountable.”
The agency is also pursuing wage theft investigations on those employers who failed to pay proper wages under the state’s labor code, the office announced.
California’s crackdown on workers compensation medical providers found guilty of fraud and other offenses continues with the suspension of five providers this week, bringing the total to 32 this year, the state’s Division of Workers’ Compensation announced Tuesday.