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DOL Recovers $1.1 Million for Workers from Beyond Yoga’s Suppliers

by Zyrene D.
01/16/2024
in Compliance, Corporate Social Responsibility, Ethical Sourcing, Fraud & Scams, Industry, Risk Management, Risk Mitigation, Security & Risk, Supply Chain, Supply Chain Transparency, Sustainability & Ethics

The U.S. Department of Labor (DOL) announced that it has recovered $1.1 million in back wages and damages for workers employed by suppliers of Beyond Yoga. The athleisure company agreed to pay $582,317 in back wages and an equal amount in damages, upon being informed of their contractors’ legal violations.

In addition to this settlement, the Office of the Solicitor obtained a consent judgment against entities Good Cash and Premium Apparel. This judgment includes a $200,000 civil money penalty for breaches of the Fair Labor Standards Act.

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Jessica Looman, the administrator of the DOL’s Wage and Hour Division, highlighted in a press release the plight of garment workers, who often face stringent production demands while receiving some of the lowest wages in the country. She stated, “This case demonstrates that the Wage and Hour Division will hold employers across the supply chain accountable to ensure workers are paid fairly and receive their legal rights.”

Beyond Yoga has committed to entering an enhanced compliance agreement with the Wage and Hour Division. This agreement will involve updating the company’s code of conduct for garment contractors, establishing a monitoring program, and directing all contractors to provide information for workers on how to confidentially report potential labor violations.

The DOL reported that the owners of the four contractor firms — Ramon Tecum, Marisela Romero (also known as Diana Tecum), and Joseph Delao — attempted to obstruct a court-authorized inspection by disguising themselves as workers, shutting off power to the facility, and instructing employees to leave the worksite. The investigation also revealed the involvement of former California Deputy Labor Commissioner Conrado Gomez in these businesses.

Beyond Yoga, primarily based in California, expanded its physical presence by opening a new store in Chicago in November, marking its first venture outside California. The brand, acquired by denim manufacturer Levi Strauss in 2021, maintains over 1,600 retail partnerships in addition to its own branded stores, with partners including Shopbop, Revolve, Nordstrom, Bloomingdale’s, REI, and Scheels.

Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.

#USDepartmentofLabor #BeyondYoga #BackWagesRecovery #FairLaborStandards #WageandHourDivision #LaborCompliance #GarmentWorkerRights #SupplyChainAccountability #LaborViolations #FairWages #LeviStrauss #DOLCompliance #WorkersRights #LaborEnforcement #GarmentIndustry

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