On January 1, 2023, Senate Bill 62, the Clothing Worker Protection Act, will come into effect, making California the first state to ban piece rate wages for clothing workers. SB 62 prohibits any “employee engaged in garment manufacturing” from “remuneration by piece, unit or piece”. The law requires each employee to impose a compensatory damage penalty of US$200 on the garment manufacturer or contractor, which is paid to the employee, and each employee is paid according to the piece rate during each payment period. The definition of "clothing manufacturing" includes sewing, cutting, making, processing, repairing, finishing, assembling, dyeing, changing the design of clothing, urging others to change the design of clothing, or putting labels on clothing.
Importantly, SB 62 has taken the unusual step of making retailers and fashion brands act as “brand guarantors” and any apparel manufacturer to bear joint and several liabilities for unpaid wages, expense reimbursements, interest, and any other compensation owed to manufacturing employees Liability, as well as employees’ attorney’s fees and costs, and civil penalties. Specifically, the law defines a "brand guarantor" as a company that has contracted apparel manufacturing performance, regardless of whether the person with whom they contract is engaged in the manufacturing business or hiring a contractor or subcontractor to conduct the manufacturing business. As a result, retailers who purchase from apparel manufacturers in California will be sued for unpaid wages, fines, and attorney fees from California manufacturers.
Garment workers only need to file a claim with the labor commissioner to exercise their rights in accordance with the law. Employees can establish a presumption of responsibility with little evidence, such as brand labels "or other credible information." In addition, the law provides for a rebuttable presumption that the clothing manufacturer or brand guarantor is jointly and severally liable for any payments owed to employees by the contractor. SB 62 also establishes a rapid basis for the labor commissioner's hearing process, requiring a decision or ruling within 90 to 120 days from the date of receipt of the claim.
The law also established cumbersome new record-keeping requirements that apply to any entity in the apparel manufacturing process chain, including brand guarantors. Starting January 1, 2022, apparel manufacturers, contractors, and brand guarantors must now keep all contracts, invoices, purchase orders, work orders, style sheets, and any other documents related to apparel manufacturing performance for four years. In addition, apparel manufacturers must keep employment and wage records during the same four-year period, adding to the existing three-year requirement.
When promulgating SB 62 and banning piece rate work, the California legislature allegedly tried to address minimum wages and unsafe working conditions, and pointed out that “clothing workers are forced to work as quickly as possible in order to complete as much work as possible within a working day. Project." However, the California Chamber of Commerce described SB 62 as an "employment killer" bill and urged Governor Newsom to veto it. In a statement praising the law, Newsom’s office described the law as “the country’s leading legislation that will end decades of unfair pay practices and require clothing manufacturers to pay workers hourly wages.”
Disclaimer: Due to the general nature of this update, the information provided here may not be applicable in all situations, and action should not be taken without specific legal advice based on specific circumstances.
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