After emerging from bankruptcy this past February, new reports suggest that American Apparel may be moving their production facilities out of Los Angeles to avoid California’s impending minimum-wage increase.
Under the new legislation, American Apparel would be forced to bump their factory workers’ pay up to $15 an hour by 2020, which, according to the LA Times, has led executives to consider relocating to Tennessee, North Carolina, and South Carolina where the minimum wage is less than half that.
The possible move comes after nearly 500 employees were laid off this past April, when American Apparel decided to outsource its denim production. And in a letter to employees obtained by by the New York Post, the company will be terminating another 50 workers when they shutdown the second of their six factories this October.
You can read more about American Apparel’s possible move at The Los Angeles Times.
