Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About Insider Intelligence

Our goal at Insider Intelligence is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how Insider Intelligence came to be.
Learn More
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about Insider Intelligence.
Contact Us
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Tune in to eMarketer's daily, weekly, and monthly podcasts.
Learn More

Wage law violations in California invite deeper scrutiny into retailers’ labor practices

This article was written with the assistance of ChatGPT.

The news: Retailers are facing more scrutiny from shareholders and the US government over their labor practices.

  • A report by the Department of Labor found significant wage law violations in California’s garment industry, where some workers making products for retailers such as Nordstrom, Neiman Marcus, Dillard’s, and Stitch Fix were found to be earning as little as $1.58 per hour.
  • Nike is under pressure from active investor Tulipshare to increase transparency into its efforts to prevent forced labor and other human rights abuses within its supply chain, per Reuters.
  • Ex-CEO and founder of Starbucks, Howard Schultz, was questioned by the Senate last week over the company’s union-busting tactics.

A global issue: The Labor Department said that 80% of the investigations it carried out in Southern California uncovered violations of the Fair Labor Standards Act, highlighting the scale of the issue and raising concerns about the treatment of workers in the American garment industry, as well as the practices of brands and retailers involved.

  • Nor is the issue confined to the US. In February, a coalition of 20 unions, along with the Asia Floor Wage Alliance and Global Labor Justice—International Labor Rights Forum, filed a complaint against Nike with the Organisation for Economic Co-operation and Development (OECD) alleging mistreatment of garment workers including arbitrary pay cuts, terminations and layoffs, unpaid wages, and “gender discrimination at an unprecedented scale.”
  • The violations uncovered by the Labor Department and the allegations against Nike may tarnish the reputations of the implicated brands and expose them to potential legal consequences and consumer backlash.

Shareholders push back: For both Starbucks and Nike, growing scrutiny into their labor practices has invited action from shareholders.

  • Starbucks shareholders approved a proposal—which the company opposed—calling on the Board of Directors to conduct an independent review to determine whether its approach to the union and unionizing workers is in accordance with the International Labour Organization’s Core Labor Standards.
  • Tulipshare issued a shareholder proposal to Nike asking the company to insert a set of model contract clauses into all its supply chain contracts that would increase worker protections. The activist investor is also requesting that the retailer disclose data for its Tier 2 and Tier 3 supply chains to increase transparency and accountability across its supplier network.

The big takeaway: The Labor Department report coupled with the allegations against Nike reiterates the need for greater supply chain transparency.

  • Supply chain transparency will not only help retailers avoid running afoul of labor laws and mistreating workers, but can also help them improve sustainability by cutting down on wasteful or inefficient practices.
  • Importantly, offering more insight into how items are produced and where they’re made can also boost a retailer’s standing among consumers, especially those looking to make sustainable or ethical purchases.
  • Finally, transparency into supply chain and labor practices benefits investors by giving them better oversight of the company’s operations, while reducing the possibility of negative headlines and consumer backlash as a result of worker mistreatment.