Governor Gavin Newsom signed a brand new regulation on September 27, 2021, that may put in force new wage and hour necessities for staff employed within the garment trade. The brand new regulation, SB 62, bans piece-rate pay for garment staff and requires employers to pay these staff an hourly minimal wage. This regulation additionally expands the classes of staff included within the definition of garment employee together with who’s answerable for wage and hour violations.
For the needs of this regulation, garment staff embrace those that minimize, make, sew, restore, assemble, end, course of, dye, place a label on a garment, alter the design of a garment, trigger another person to change the design of a garment, or put together carrying attire, a garment, or equipment meant to be worn.
Individuals who enter a contract to have clothes manufactured are liable together with producers, contractors, model guarantors, and presumably some retailers for legal professional’s charges, unpaid wages, and civil penalties which can be a results of Labor Code violations. The violation additionally ends in compensatory damages of $200 per worker per pay interval by which an worker is paid by the piece for which these violators are collectively accountable.
SB 62 bans piece-rate pay. Employers might give incentive bonuses however should pay all workers a minimum of the minimal hourly wage. Additionally, the necessities for additional time compensation are the identical.
Document-keeping necessities have additionally modified beneath the brand new regulation. Beneath SB 62, all companies within the garment manufacturing chain should hold any documentation linked to the garment manufacturing efficiency for 4 years. This contains buy orders, invoices, contracts in addition to some other paperwork associated to the method. Model guarantors are topic to this requirement as properly.
There is no such thing as a non-public proper of motion on this regulation, however garment staff might file a declare with the California Labor Fee, and presumption of legal responsibility just isn’t laborious to determine. Moreover, little proof is required for staff to show their case, and the listening to course of is troublesome for respondents. The regulation has a rebuttable presumption that the contractors, garment producers, and model guarantors are all chargeable for any cash owed to the staff. The Labor Commissioner additionally has the authority to difficulty a quotation or cease order.
With the heavy legal responsibility and penalties which will include violations, corporations using any garment staff in California ought to audit their present wage system and take steps to conform. Moreover, you will need to inquire with any contractors as properly to make sure that additionally they are in compliance because of the mutual duty this regulation creates.