U.S. Department of Labor 2001 San Francisco Garment Compliance Survey

Wage and Hour Division
U.S. Department of Labor
March 2002

Background

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

For this survey, WHD conducted investigations of 48 firms producing apparel in northern California (San Francisco and Alameda Counties). The firms were randomly selected from companies registered with the State of California as of December 2000.

Summary of Compliance Survey Findings

Compliance levels in San Francisco continue to improve. The 2001 survey found that 96 percent of garment workers in San Francisco are paid in compliance with FLSA minimum wage and overtime requirements, compared to 87 percent in 1999.

WHD found 75 percent of San Francisco garment employers in overall compliance with FLSA, with 94 percent of firms complying with minimum wage requirements and 75 percent of firms complying with the overtime provisions. This represents a 30 percent increase in overall compliance since WHD conducted its first survey in 1995.

As in 1999, WHD found lower compliance levels for garment firms in business less than five years. Only 67 percent of such firms were in overall compliance with the FLSA, although this represents a significant improvement over the 1999 compliance rate for such firms of 40 percent.

However, compliance for low-wage workers (e.g., employees who sew, press and trim apparel goods) increased in 2001: 88 percent of the garment firms with low-wage workers were in compliance with the FLSA, compared to 81 percent in 1999.

The severity of violations found also continued to decrease. In 2001, the average back wages due per employee was $212, down from $299 in 1999.

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

Compliance Survey Results

* Not measured.