WRC Issues Guidance to Licensees on New Wage and Hour Compliance Risks in El Salvador

At the beginning of this month, the WRC issued guidance to university licensees concerning several wage and hour compliance risks that have recently emerged in relation to garment factories, including those producing collegiate apparel, in El Salvador:

• Implementation of a recent increase to El Salvador’s legal minimum wage;
• Provision of legally mandated paid time off to Salvadoran garment workers to receive Covid-19 vaccinations;
• Recent Salvadoran legislation authorizing use of “bitcoin” as legal tender, including, potentially, for workers’ wages; and
• Employers’ potential misuse of a so-called “4 x 4” work schedule (a schedule where employees work four consecutive 12-hour days), which is prohibited under Salvadoran law.

In this issue brief we discuss the guidance we have shared with university licensees concerning each of these issues, including factual background information and the relevant standards in Salvadoran law and university codes of conduct, as well as the WRC’s current engagement with licensees to verify their suppliers’ compliance.

As always, please let us know if you have any questions or concerns.