Garment Manufacturers Cited Under "hot Goods" Law

State Attorney General Spitzer and State Labor Commissioner James J. McGowan today hailed a major decision by a state judge that will prevent the sale of clothing produced by exploited immigrant workers in Manhattan.

The ruling is the first decision to interpret the state’s "Hot Goods" law enacted in 1996. The law allows the Attorney General to seek a court order barring the sale or shipment of apparel manufactured in violation of state labor laws.

"The Hot Goods law, aggressively enforced, can be an extremely effective tool in stopping sweat shop operations," Attorney General Spitzer said. "This decision, which applies to both the contractor and manufacturer of the apparel, should send a clear message to the industry that we are committed to the fair treatment of workers."

Commissioner McGowan said: "The eradication of sweatshops is a priority of Governor George Pataki’s administration, and the court’s injunction represents a major step toward our objective. The Hot Goods law is one of several enforcement measures Governor Pataki has initiated to protect workers in the apparel industry."

New York County Supreme Court Judge Alice Schlesinger granted an injunction sought by the Attorney General barring the "14 West" Garment Factory Corporation of Brooklyn from the shipping, delivery, sale or purchase of garments manufactured by a subcontractor, Ding & Mag Fashion, Inc., of Manhattan.

Ding & Mag, and its principals, Yu Ding Zheng and Lu-Man Luo, were accused of underpaying 23 workers, most of whom were Chinese immigrants engaged in piece-work production of various clothing items, including dresses and shirts.

In January 1999, these workers reported the non-payment of wages to the Department of Labor Apparel Industry Task Force (AITF). After dispatching investigators to both Ding & Mag facilities and a 14 West warehouse, the Task Force notified the Attorney General’s office, which then sought the injunction against both companies.

The AITF conducts more than 1,000 inspections of firms throughout New York City’s garment sector each year. In addition to enforcing wage and hour laws, the task force refers any unsafe working conditions to the appropriate state, local and federal authorities.

In court, "14 West" officials argued that they did not know that the apparel they purchased for resale was manufactured in violation of labor laws and that they ought not to be held responsible for its subcontractor’s actions. The judge rejected that argument, finding that the law provided liability for manufacturers regardless of their knowledge of labor law violations at the time the garments were produced.

Spitzer said the judge’s decision would help ensure that cheap, illegally produced goods do not compete with legally produced goods and that apparel companies cannot hide from liability under the guise of ignorance of their subcontractor’s actions. He said the ruling would help bolster efforts to close down sweat shop operations and enforce minimum wage and payment of wage laws.

The injunction against the shipping, delivery, sale or purchase of the illegally produced apparel can be removed by the court if the workers are paid the wages they are owed.

The case was handled by Assistant Attorneys General James W. Versocki and Jennifer S. Brand of the Labor Bureau.