SB 62

Bill Subjects

Abstract

Existing law makes garment manufacturers liable for guaranteeing payment of wages to employees of their contractors. This bill would expand the definition of garment manufacturing to include dyeing, altering a garment's design, and affixing a label to a garment. The bill would prohibit any employee engaged in the performance of garment manufacturing to be paid by the piece or unit, or by the piece rate, except as specified. The bill would impose compensatory damages of $200 per employee against a garment manufacturer or contractor, payable to the employee, for each pay period in which each employee is paid by the piece rate. This bill would define "brand guarantor" for purposes of these provisions as a person contracting for the performance of garment manufacturing, as specified, regardless of whether the person with whom they contract performs manufacturing operations or hires a contractor or subcontractor to perform manufacturing operations. This bill would specify that a garment manufacturer, contractor, or brand guarantor who contracts with another person for the performance of garment manufacturing operations shares joint and several liability with any manufacturer and contractor for the full amount of unpaid wages, and any other compensation, including interest, due to any and all employees who performed manufacturing operations for any violation, attorney's fees, and civil penalties, as specified. The bill would also make garment manufacturers and contractors liable for the full amount of damages and penalties for any violation, as specified. This bill would create a rebuttable presumption in a claim filed with the Labor Commissioner to recover unpaid wages and associated penalties, if an employee has provided the Labor Commissioner with labels or other information that the commissioner finds credible relating to the identity of any brand guarantor or garment manufacturer that the brand guarantor or garment manufacturer is liable with the contractor for any amounts found to be due to the employee. The bill would also give the Labor Commissioner authority to enforce these provisions by issuing a stop order or a citation. Existing law requires every employer engaged in the business of garment manufacturing to keep certain records for 3 years, including, among other things, contract worksheets indicating the price per unit agreed to between the contractor and manufacturer. This bill would also require every employer engaged in the business of garment manufacturing and brand guarantors to keep all contracts, invoices, purchase orders, work orders, style or cut sheets, and any other documentation pursuant to which garment manufacturing work was, or is being, performed for 4 years. Existing law requires the commissioner to deposit $75 of each garment manufacturer's registration fee into one separate account to be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and benefits by a garment manufacturer, contractor, or subcontractor. This bill would instead require these funds to be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and benefits by a garment manufacturer, brand guarantor, or contractor. Existing law precludes any employer, or other person or entity, who may be liable for a violation of any provision of the Labor Code from introducing as evidence, in an administrative proceeding contesting a citation or writ proceeding under specified provisions, books, documents, or records that are not provided pursuant to a duly served written request by the Labor Commissioner within the time the Labor Commissioner requests those books, documents, or records be produced, as specified. This bill would expand those provisions to also preclude the introduction of records not provided to the Labor Commissioner, as specified, in an administrative proceeding under the provisions described above relating to the payment of wages for the performance of garment manufacturing.