United States District Court, C.D. California, Western Division
R. ALEXANDER ACOSTA, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, Plaintiff,
GINGER GREEN, INC., a corporation; AQUA FASHION, INC., a corporation; CHANG LEE, an individual, HYE KYUNG LEE, an individual; HAE LEE, an individual; GILSU PARK, an individual; JE FASHION, INC.,  a corporation; KYU YOUNG YOO, an individual, Defendants.
CONSENT JUDGMENT AND ORDER
R. Alexander Acosta, Secretary of Labor, United States
Department of Labor (“Secretary”), and Defendants
Ginger Green, Inc. (“Ginger Green”) Chang Lee,
Hye Kyung Lee, and Hae Lee (“Defendants”), have
agreed to resolve the matters in controversy in this civil
action and consent to the entry of this Consent Judgment in
Secretary has filed a Complaint alleging that the Defendants
violated provisions of Section 15(a)(1), 29 U.S.C. §
215(a)(1) of the Fair Labor Standards Act of 1938, as amended
(“FLSA”), and Section 11(a), 29 U.S.C. §
211(a) of the FLSA.
Defendants appeared by counsel, acknowledged receipt of a
copy of the Secretary's Complaint, and filed their answer
on August 9, 2018;
Secretary and Defendants waive Findings of Fact and
Conclusions of Law, and agree to the entry of this Consent
Defendants admit 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.
Defendant Ginger Green is a garment manufacturer that sells
apparel to clothing retailers, including TJX Companies, Inc.,
Ross, Fashion Nova, Gaudy Me, Suzy Shier, A'Graci
Cornerstone, and Windsor. Defendant Ginger Green secures
garment orders with their retailers and then contracts with
sewing factories, including Defendants Aqua Fashion, Inc.
(“Aqua”) and JE Apparel, Inc. (“JE”),
to complete the garments for their orders. Ginger Green
supplies the cut fabric, design and other style requirements
to the sewing factory that produces the finished garments.
Defendants Change Lee, Hye Kyung Lee, and Hae Lee are
co-owners of Ginger Green.
Secretary's investigation of both the Aqua and JE factory
revealed violations of the FLSA's minimum wage, overtime,
and recordkeeping provisions. At each location, employees are
paid a piece rate or a weekly salary, regardless of the
number of hours worked, resulting in hourly wages below
minimum wage. Employees at each location also work over 40
hours per week but do not receive overtime compensation.
Secretary's investigation revealed that retailer, TJX
Companies, Inc. paid Ginger Green the same unit price for
both domestic and foreign made garments.
Secretary found that workers who produced Ginger Green
garments domestically were paid as little as $2.25 per hour.
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 by
employees who were not paid the wages required under the
Following inspection of the Aqua factory, Wage and Hour
investigators notified Ginger Green that all garments made by
Aqua within the last 90 days were hot goods and that the
Secretary objected to shipment of these goods into interstate
Ginger Green agreed to refrain from shipping or selling hot
goods unless and until the Secretary's investigation was
resolved with payment to the workers of all monies due.
Ginger Green promptly violated this agreement and continued
to ship goods identified as “hot goods” while
lying to the Secretary about the shipment of these goods and
actively obscuring the evidence that they had shipped the hot
After filing his Complaint, the Secretary identified the
following seven (7) additional domestic sewing contractors
producing garments for Ginger Green, Sung Hee Park dba as
Super Seam, Inc., SC Style, Inc., HJ Fashion, Inc., KBKB
Fashion, Inc., All is Well, Inc., Keep in Touch TS, Inc., and
BSY Fashion, Inc., all of which operated in violation of the
FLSA's wage provisions, thus producing hot goods for
ADJUDGED, AND DECREED that the Defendants, their 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
Defendants 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.
Defendants shall not fail to disgorge, from the gross
proceeds of their having sold or shipped in commerce goods
that had been worked on by employees of Aqua Fashion, Inc.,
JE Apparel, Inc., Sung Hee Park dba as Super Seam, Inc., SC
Style, Inc., HJ Fashion, Inc., KBKB Fashion, Inc., All is
Well, Inc., Keep in Touch TS, Inc., and BSY Fashion, Inc. 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 $357, 993.81 for the following periods:
Aqua Fashion, Inc.: January 10, 2018 to May 7, 2018;
JE Apparel, Inc.: February 9, 2018 to May 9, 2018;
Super Seam, Inc.: March 15, 2018 to June 12, 2018;
SC Style, Inc.: March 15, 2018 to June 12, 2018;
HJ Fashion, Inc.: January 31, 2018 to May ...