Supply Chain Innovation

Fair Compensation

The Fair Labor Association and its stakeholders—buyers, suppliers, labor rights organizations, and universities—are part of a global effort to improve workers’ compensation. Workers in global supply chains often earn poverty level wages that are not sufficient to support themselves or their families, and the FLA is committed to addressing this urgent issue.

The FLA Code of Conduct states that workers have a right to compensation within a regular work week that is sufficient to meet their basic needs and have some discretionary income. FLA affiliates have aligned their internal codes of conduct with this commitment and, alongside the FLA, have committed to make progress to achieve this goal. Ongoing reporting on the FLA’s strategy, progress, tools for stakeholders, and other news and information are available below.


Read the FLA Fair Compensation Strategy document.



Updates on worker compensation and support for living wages.



FLA reports on worker compensation in global supply chains.



Guidance for fair compensation data collection.


Latest Updates

2020 Fair Compensation Strategy

Publication date: 
Tuesday, April 7, 2020
Report type: 
Fair CompensationAbout
The FLA’s vision is that workers in affiliate supply chains will earn compensation that is sufficient to meet their basic needs and have some discretionary income. The FLA’s 2020 Fair Compensation Strategy charts a path toward this goal.

Toward Fair Compensation in Bangladesh

Publication date: 
Monday, April 23, 2018
Report type: 
Fair CompensationReports
Across all 18 factories studied for this report, the Fair Labor Association (FLA) found that not a single garment worker among the more than 6,000 whose wages were studied was earning income even close to a living wage, measured against any living wage benchmark. While the report found the minimum wage in Banglesh set below the World Bank poverty line, buyers and suppliers need not wait on government action to begin working collaboratively on higher wages.

FLA Urges Brands to Ensure at Least Tailoring-Level Wages for Tamil Nadu Knitwear Workers

Publication date: 
Wednesday, March 21, 2018
Report type: 
Fair CompensationNews and Action
In February 2018, the Tamil Nadu government released a new order, clarifying the status of workers manufacturing hosiery or engaged in tailoring work. The FLA urges all affiliated brands sourcing knitwear from Tamil Nadu to work with suppliers to support wages that continue to meet at least the tailoring level, in pursuit of wages that cover workers’ basic needs plus discretionary income.