The California Labor Commissioner’s Office has cited six Los Angeles area garment contractors $573,704 for labor law violations after uncovering a scheme where the contractors illegally operated under one license to avoid compliance.

Four of the contractors did not have valid workers’ compensation coverage for their employees.

“Shared use of a garment manufacturing registration is illegal, and it gave these contractors an unjust economic advantage over law-abiding garment businesses,” Labor Commissioner Julie A. Su said in a statement. “Sweatshop operators attempting to game the system at the expense of their competitors often do so on the backs of their own workers.”

The Labor Commissioner’s office discovered that most of the 57 employees at the contractors’ building downtown on South Broadway worked up to 65 hours a week for less than minimum wage. Two workers, ages 15 and 16, were operating industrial sewing machines in violation of California’s child labor laws.

The Labor Commissioner’s investigation began in July. Investigators visited the worksite, operating under the name Pure Cotton Inc. Owner Kyung Ho Choi told investigators he collected rent but was not involved in the making of garments. His brother-in-law, Kuong Chan Kim, claimed that all of the workers were employed by his company, Union Supply Inc., which was registered as a garment manufacturer.

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