U.S. Department of Labor 2001 New York City Garment Compliance Survey

U.S. Department of Labor
March 2002

Background

The Wage and Hour Division (WHD) of the U.S. Department of Labor recently completed its third investigation-based compliance survey of the New York City garment industry. The purpose of the survey was to determine the current level of compliance with the minimum wage, overtime, child labor and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

For this survey, WHD conducted investigations of 67 contractor shops randomly selected from companies in New York City registered with the State of New York as of February 2001.

Summary of Compliance Survey Findings

The level of compliance in the New York garment industry improved significantly. The 2001 survey found that 93 percent of garment workers in New York City are paid in compliance with the FLSA minimum wage requirements, compared to 83 percent in 1999; 62 percent of New York City garment workers were paid overtime in compliance with the FLSA, compared to just 42 percent in 1999.

WHD found 52 percent of the New York City garment employers in overall compliance with FLSA, with 87 percent of firms complying with minimum wage requirements (compared to 69 percent in 1999) and 52 percent of firms complying with overtime provisions (compared to 39 percent in 1999). This represents a 40 percent increase in overall compliance since WHD conducted its first survey in 1997.

As in 1999, WHD found lower compliance levels for garment firms in business less than two years. Only 51 percent of such firms were in overall compliance with FLSA, although this represents a significant improvement over the 1999 compliance rate for such firms of 25 percent.

The severity of violations found also continued to decrease. In 2001, the average back wages due per employee was $251, down from $516 in 1999. The average back wages due per garment firm also dropped 50 percent from 1999 levels.

Finally, as in 1997 and 1999, WHD did not find any child labor violations.

Compliance Survey Results

* Not measured.