IR #98-12
Friday, April 3, 1998

Rick Rice
Dean Fryer
(415) 972-8835

State Labor Commissioner Targets Counterfeit Garment Manufacturers 15,000 Garments Seized

SAN FRANCISCO -- John C. Duncan, Director of the Department of Industrial Relations today announced the results of a Division of Labor Standards Enforcement (DLSE) investigation of P. K. Stitchery of Bell Gardens. Over 100,000 Nike, Calvin Klein, Versace, Adidas, and Reebock labels were seized along with approximately 15,000 garments, alleged to be counterfeit.

"This apparent attempt to profit at the expense of legitimate businesses will not be tolerated," said Duncan. "Our agency will take swift action to deter those shops which seek to undercut their legitimate competition by avoiding their obligations to pay taxes, cover their employees for workers' compensation insurance or even pay the minimum wage," Duncan added.

Records from the office of Secretary of State show Min Su Paek as the registered owner of P. K. Stitchery. The business was targeted by state labor investigators after they received a report that the company was not paying minimum wage and overtime. In addition to the wage information, the informant provided a counterfeit label and indicated that the employer was engaged in counterfeit garment manufacturing. DLSE contacted a trademark investigator who identified the label as counterfeit.

Information obtained from employees at the site indicated that they were working 12 hours a day, 7 days a week, at $4.00 per hour. It was also found that they were being paid in cash. No payroll records were found on the premises.

A citation for no workers' compensation insurance in the amount of $8,000 was issued against the company, and additional citations for cash pay, records, minimum wage and registration violations will be issued when the owner, Min Su Paek, is located and able to be served in person.

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