The Hidden Truth Linking the Broken Border to Your Online Shopping Cart
·1 min
During the pandemic, Alo Yoga's sales soared, propelled by its social media fame, largely due to celebrities showcasing the brand. Sales reportedly doubled to over $1 billion. Bella+Canvas, Alo’s sister company, also hit a milestone by selling directly to consumers. Both companies expanded operations to a large distribution center in Nevada, grappling with staffing shortages.
Many businesses contract staffing agencies, who sometimes employ undocumented migrants. One such agency, BaronHR, partnered with Alo Yoga and Bella+Canvas before collapsing amid widespread allegations of wage theft and exploitation. BaronHR’s founder, now jailed, portrayed himself as supportive of immigrant workers but was implicated in exploiting them instead.
Despite tough immigration rhetoric, staffing agencies across the industry have been scrutinized for unverifiable hiring practices, revealing persistent systemic issues. Federal and state investigations into such practices are ongoing, raising questions about companies' responsibilities in labor practices. Despite the scrutiny, companies often distance themselves from the actions of staffing agencies.
The broader staffing market remains integral to supply chains, with many unauthorized workers finding initial employment through these agencies, despite associated risks. The challenges faced by these workers, including bounced paychecks, unsafe work conditions, and discrimination, highlight exploitation concerns that persist across the industry.