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Harris v. Mias Fashion Manufacturing Company, Inc.

United States District Court, Ninth Circuit

June 26, 2013

SETH D. HARRIS, Acting Secretary of Labor, United States Department of Labor, Plaintiff,
v.
MIAS FASHION MANUFACTURING COMPANY, INC., Defendant.

M. Patricia Smith, Solicitor Solicitor, Janet M. Herold, Regional Solicitor, Daniel J. Chasek, Associate Regional Solicitor, Susan Seletsky, Attorney (CSBN #176106) Office of the Solicitor, (MMS #1300307) United States Department of Labor, Los Angeles, California, Attorneys for the Plaintiff.

Alice Li, Esquire, Counsel for Mia's Fashion Manufacturing Company, Inc., Attorneys for the Defendant.

CONSENT JUDGMENT

JPHN F. WALTER, District Judge.

Plaintiff Seth D. Harris, Acting, Secretary of Labor, United States Department of Labor ("Secretary"), and Defendant Mias Fashion Manufacturing Company, Inc. ("Defendant"), have agreed to resolve the matters in controversy in this civil action and consent to the entry of this Consent Judgment in accordance herewith:

A. The Secretary has filed a Complaint alleging that the Defendant violated provisions of Sections 15(a)(1), 29 U.S.C. §§ 215(a)(1) of the Fair Labor Standards Act of 1938, as amended ("FLSA");

B. Defendant appeared by counsel, waived issuance and service of Summons, and waived any answer and any defenses to the Secretary's Complaint;

C. The Secretary and Defendant waived Findings of Fact and Conclusions of Law, and agreed to the entry of this Consent Judgment, without contest;

D. Defendant admits that the Court has jurisdiction over the parties and subject matter of this civil action and that venue lies in the Central District of California;

FACTUAL BACKGROUND

E. Defendant is a garment manufacturer that contracts with independent garment factories who work on the textiles and designs supplied by the Defendant. The work subcontracted to these independent garment factories ("garment contractors") include sewing, cutting, printing and finishing of the garments. Once all of the garment contractors conclude their portion of the work on the Defendant's goods, those goods are shipped to Defendant or Defendant's retail customers, for sale in commerce. Under the FLSA's "Hot Goods" provision, 29 U.S.C. § 215(a)(1), all persons are prohibited from introducing into commerce goods that have been worked on employees who were not paid the wages required under the FLSA. Prior to the instant matter, investigations conducted by the Wage and Hour Division, U.S. Department of Labor ("Wage and Hour") have disclosed circumstances in which the hot goods provision was violated.

F. During the period of March 13, 2011-June 16, 2011, J&H Fashion, Inc. also known as T&G Mode, Inc. and doing business as JYM Merchandise, located at 647 Gage Street, Los Angeles, CA 90001, employed employees in and about its place of business in producing, handling, or working on goods a substantial portion of which was shipped, delivered or sold to places outside the State of California with knowledge or reason to believe that shipment, delivery or sale to places outside of California was intended. Its employees, by reason of their employment, were engaged in commerce or in the production of goods for commerce within the meaning of the FLSA;

i. During the period of March 13, 2011-June 16, 2011, J&H Fashion, Inc. violated the provisions of FLSA §§ 6 and 15(a)(2), 29 U.S.C. §§ 206 and 215(a)(2), by paying its employees who worked on garments produced for Defendant at wage rates less than the applicable federal minimum wage of $7.25 per hour;
ii. During the period of March 13, 2011-June 16, 2011, J&H Fashion, Inc. violated the provisions of FLSA §§ 7 and 15(a)(2), 29 U.S.C. §§ 207 and 215(a)(2), by failing to pay its employees who worked on garments produced for Defendant at time and one half the employee's regular rate for all hours worked in excess of 40 hours in a work week;
iii. During the period of March 13, 2011-June 16, 2011, Defendant violated the provisions of FLSA § 15(a)(1), 29 U.S.C. § 215(a) (1) (the "hot goods" provision), by transporting, offering for transportation, shipping, delivering or selling in commerce, or shipping, delivering or selling with knowledge that shipment or delivery or sale in commerce was intended, goods in the production of which employees of J&H Fashion, Inc. were not paid the minimum wage and/or overtime required by FLSA Sections 6 and/or 7, 29 U.S.C. §§ 206 and/or 207 as described above;

G. During the period of August 30, 2011 through November 28, 2011, G&G Apparel, Inc., located at 203 W. Martin Luther King Blvd., Los Angeles, CA 90037, employed employees in and about its place of business in producing, handling, or working on goods a substantial portion of which was shipped, delivered or sold to places outside the State of California with knowledge or reason to believe that shipment, delivery or sale to places outside of California was intended. Its employees, by reason of their employment, were engaged in commerce or in the production of goods for commerce within the meaning of the FLSA;

i. During the period of August 30, 2011 through November 28, 2011, G&G Apparel, Inc. violated the provisions of FLSA §§ 6 and 15(a)(2), 29 U.S.C. §§ 206 and 215(a)(2), by paying its employees who worked on garments produced for Defendant at wage rates less than the applicable federal minimum wage of $7.25 per hour;
ii. During the period of August 30, 2011 through November 28, 2011, G&G Apparel, Inc. violated the provisions of FLSA §§ 7 and 15(a)(2), 29 U.S.C. §§ 207 and 215(a)(2), by failing to pay its employees who worked on garments produced for Defendant at time and one half the employee's regular rate for all hours worked in excess of 40 hours in a work week;
iii. During the period of August 30, 2011 through November 28, 2011, Defendant violated the provisions of FLSA § 15(a)(1), 29 U.S.C. § 215(a) (1) (the "hot goods" provision), by transporting, offering for transportation, shipping, delivering or selling in commerce, or shipping, delivering or selling with knowledge that shipment or delivery or sale in commerce was intended, goods in the production of which employees of G&G Apparel, Inc. were not paid the minimum wage and/or overtime required by FLSA Sections 6 and/or 7, 29 U.S.C. §§ 206 and/or 207 as described above;

It is therefore, upon motion of the attorneys for the Secretary, and for cause shown,

ORDERED, ADJUDGED, AND DECREED that the Defendant, its officers, agents, servants, and employees and those persons in active concert or participation with them who receive actual notice of this order (by personal service or otherwise) be, and they hereby are, permanently enjoined and restrained from violating the provisions of Section 15(a)(1), 29 U.S.C. §§ 215(a)(1) of the Fair Labor Standards Act of 1938, as amended ("FLSA"), in any of the following manners:

1) Defendant shall not, contrary to FLSA § 15(a)(1), 29 U.S.C. § 215(a)(1), transport, offer for transportation, ship, deliver, or sell in commerce (or ship, deliver, or sell with knowledge or reason to believe that shipment, delivery, or sale in commerce is intended) goods in the production of which any employee (of the Defendant or other(s)) has been employed in violation of the FLSA's minimum wage (29 U.S.C. § 206) or overtime pay provisions (29 U.S.C. § 207);

2) Defendant shall not fail to disgorge, from the gross proceeds of its having sold or shipped in commerce goods that had been worked on by Global Oak Finishing, Inc. doing business as Oak Hotfix and Finishing and doing business as Oak H & F who were not paid the minimum wage and overtime required by the FLSA, 29 U.S.C. §§ 206 and 207, an amount sufficient to cover the back wages due to these employees under the FLSA. The amount hereby found due to these employees is $3, 236.78 for the period of February 4, 2013 through May 4, 2013 as ...


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