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Article
24 Feb 2016
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Ross Stores
United States of America
Living Wage Supply Chains
The Department of Labor’s wage and hour division said Wednesday that it has gotten a consent judgment against a primary clothing supplier for Ross Stores.
The judgment requires YN Apparel in Vernon, the supplier, to pay $212,000 in back wages to employees for minimum wage and overtime violations, as well as hire a third-party monitor to ensure all of its domestic garment contractors comply with the overtime, minimum wage and recordkeeping provisions of the Fair Labor Standards Act.
Evidence supporting the division’s findings included an analysis conducted by investigators which showed that prices contractors received from YN would need to be up to three times what they were actually paid in order to pay their workers legally-required wages. In the case of Ross, which operates Ross Dress for Less stores, YN would have needed to receive double the price to sufficiently to pay their workers.
The consent judgment requires YN to conduct this same analysis for every domestic contractor it uses in the future beyond Ross Stores. If the price is not high enough to support legally required wages for workers, YN must renegotiate the contract...
*Sourced by RepRisk due diligence on ESG and business conduct risks,www.reprisk.com.
