Retailer Gap Inc. on Thursday said it is settling all claims it is facing in a suit alleging violations of wage and hour laws and other workers' rights in Saipan garment factories in the U.S. Commonwealth of the Northern Marianas Islands.
Gap, the largest U.S. specialty apparel retailer, said it joined six other U.S. clothing retailers and 23 Saipan garment manufacturers in reaching a global settlement in the federal class-action lawsuit.
Gap Settles Garment Workers Lawsuit - Business and Human Rights Centre
Labor & working conditionsConfirmedAgainst
Gap not complying with worker protection laws
Gap is accused of failing to comply with local laws on annual leave, minimum wage, overtime, record keeping, and machinery safety.
The most frequent violations of The Gap's code of conduct included factories not complying with local laws on annual leave, failure to pay the minimum wage, working weeks in excess of 60 hours, inaccurate record keeping and machinery lacking safety devices.
Corporate conductRecallAgainst
Gap recalls baby swimsuits due to strangulation hazard
Gap recalled baby swimsuits after identifying a strangulation hazard.
At a time when other business leaders were firing employees for their reactions to the killing of conservative activist Charlie Kirk, Gap Inc. CEO Richard Dickson took the opposite approach, encouraging employees to engage in open dialogue.
Speech & moderationConfirmedYou decide
Richard Dickson encourages constructive employee speech
Richard Dickson encouraged employees to share opinions in constructive, not divisive ways.
Gap also cut Scopes 1 and 2 greenhouse gas emissions by 70% from a 2017 baseline, less than the 74% reported in 2024.
Gap Inc. hit its sustainable cotton sourcing goal and exceeded its recycled polyester target in fiscal 2025, while renewable power use and some greenhouse gas emissions slipped, according to an annual report.
Privacy & surveillanceConfirmedAgainst
Gap suffers network disruption on July 22, 2025
Gap experienced a network disruption on July 22, 2025, and immediately initiated an investigation.
On July 22, 2025, Gap experienced a network disruption and immediately initiated an investigation of the matter.
Privacy & surveillanceAllegationAgainst
Gap is accused of privacy lawsuit
Gap is accused of facing a privacy lawsuit over allegations that it contracted with a third party to collect data on customers' interactions with marketing emails.
Siding with The Gap, a federal judge has tossed a privacy lawsuit over allegations that the clothing retailer contracted with a third party to collect data about customers' interactions with marketing emails.
Siding with The Gap, a federal judge has tossed a privacy lawsuit over allegations that the clothing retailer contracted with a third party to collect data about customers' interactions with marketing emails.
Workplace equitySettlementAgainst
Gap settlement over workplace discrimination
IER’s charge-based and independent investigations found that Gap discriminated against certain workers by reverifying their permission to work, even though there was no legal reason to do so.
“This settlement with Gap underscores the division’s work over the last 35 years to end unlawful employment discrimination,” Assistant Attorney General Kristen Clarke, who works in the Civil Rights Division of the DOJ, said in the statement.
IER’s charge-based and independent investigations found that Gap discriminated against certain workers by reverifying their permission to work, even though there was no legal reason to do so.
IER also determined that Gap discriminated against some non-U.S. citizens by requesting that they provide specific documents to confirm that they still had permission to work.
As part of the settlement, Gap will pay $73,263 in civil penalties, provide back wages to an asylee and a lawful permanent resident who lost work, train thousands of its employees nationwide, ensure that its electronic programs are compliant with applicable rules, and be subject to monitoring and reporting requirements for three years.
On November 29, 2021, IER signed a settlement agreement with Gap, Inc. (Gap), resolving claims that the company discriminated against certain non-U.S. citizens (including lawful permanent residents, refugees and asylees) and naturalized U.S. citizens because of their current or prior immigration status, in violation of 8 U.S.C.
29 (UPI) -- Gap Inc. has reached a settlement to resolve federal charges that it discriminated against workers because of their immigration status, the Justice Department announced Monday.
"This settlement with Gap underscores the division's work over the last 35 years to end unlawful employment discrimination," Assistant Attorney General Kristen Clarke, who works in the Civil Rights Division of the DOJ, said in the statement.