Subject: Re: Minnesota 1, Spankee 0
I have never heard of a company being fined.
'In 2009, American Apparel fired approximately 1,600 to 1,800 factory workers—nearly one-third of its Los Angeles workforce—after a U.S. Immigration and Customs Enforcement (ICE) audit revealed they were unauthorized to work. Despite the company's "sweatshop-free" branding, this, along with subsequent legal issues and financial trouble, significantly impacted production.
Key details regarding the 2009 American Apparel immigration audit:
Audit Findings: ICE investigators identified about 1,800 employees with questionable documentation, leading to the termination of 1,600 who could not prove their legal status.
Investigation Origin: The audit began in January 2008, prior to the mass firings in late 2009.
Company Stance: Founder Dov Charney, known for pro-immigrant views, was "deeply saddened" by the firings but complied with the law. The company maintained it did not willingly hire unauthorized workers.
Impact on Business: The loss of experienced workers forced a scramble for replacements and contributed to financial pressures, including a $4.4 million reduction in operating income in early 2010.
Shareholder Lawsuits: The company faced lawsuits from shareholders claiming management failed to disclose the risks associated with its reliance on a largely immigrant workforce.
Subsequent Events: The company later entered bankruptcy in 2015 and 2016 before being acquired and moving away from its exclusive "Made in USA" model.'