DOL Files Subpoena Enforcement Action Against Forever 21

The U.S. Deparment of Labor announced last week that it has gone to court to enforce a subpoena seeking employment records from clothier Forever 21. DOL said it is investigating whether the Los Angeles-based retailer’s vendors and subcontractors are violating the Fair Labor Standards Act’s minimum wage, overtime, and recordkeeping requirements.

Fighting a subpoena is an uphill battle, as the law gives enforcement agencies like DOL broad authority to require production of relevant evidence in an investigation.

According to a story in the Los Angeles Times, Forever 21  offered to meet with the agency and “promptly responded” to the subpoena with information that resolved the investigation.

Since the store is a big target in the DOL’s investigation of the West Coast garment industry, fighing this subpoena is a risky step that could be costly for the comnpany in legal fees and possibly alienating its customer base.

We’ll see just how far the company wants to take this contest.

 

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