DOL sues to gain access to Forever 21 - Business Management Daily

The U.S. Department of Labor?s new crackdown on alleged wage-and-hour abuses in the Southern California garment industry has resulted in its first legal action. (See "U.S. DOL launches probe of Southland garment industry.")

The DOL in October subpoenaed documents from Los Angeles-based apparel retailer Forever 21 that could show the company?s suppliers have been violating the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act. When Forever 21 did not immediately turn over the documents, the DOL sued to force it to comply.

Note: The urge to protect suppliers and partners may show loyalty, but it also shows questionable business sense. Each company is responsible for obeying the law. Spending money to save another company from litigation is an unnecessary expense.

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