Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to amend and pass a bill that requires garment manufacturers to be responsible for guaranteeing payment of wages to employees.

Highlights:

• Requires every employer engaged in garment manufacturing to keep records for four years of the following (Sec. 4):

• The names and addresses of all garment workers employed by this person;

• The hours worked daily by employees;

• The daily production sheet, including piece rates;

• The wage and wage rates paid each payroll period;

• The contract worksheets indicating the price per unit agreed to between the contractor and manufacturer;

• All contracts, invoices, purchase orders, work or job orders, and style or cut sheets; and

• The ages of all minor employees.

• Requires a garment manufacturer or brand guarantor to be liable for the following (Sec. 5):

• The full amount of unpaid premium wages, reimbursement for expenses, damages, and penalties due to all employees who performed the operations;

• Liquidated damages owed to all employees who performed the operations;

• The employee’s reasonable attorney’s fees; and

• Civil penalties for failure to secure valid workers’ compensation coverage.

• Authorizes an employee to recover liquidated damages in an amount equal to the wages unlawfully withheld (Sec. 5).

• Authorizes the Labor Commissioner to investigate as to whether all employees of garment manufacturers are being paid all compensations (Sec. 5).

• Prohibits garment manufacturing employees to be paid by the piece, unit, or piece rate (Sec. 6).

• Requires the commissioner to deposit $75 of each registrant’s annual registration fee into a separate account known as the Garment Manufacturers Special Account. Funds shall be disbursed only to persons determined by the commissioner to have been damaged by the failure to pay compensation and benefits (Sec. 7).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires garment manufacturers to be responsible for guaranteeing payment of wages to employees.

Highlights:

• Requires every employer engaged in garment manufacturing to keep records for four years of the following (Sec. 4):

• The names and addresses of all garment workers employed by this person;

• The hours worked daily by employees;

• The daily production sheet, including piece rates;

• The wage and wage rates paid each payroll period;

• The contract worksheets indicating the price per unit agreed to between the contractor and manufacturer;

• All contracts, invoices, purchase orders, work or job orders, and style or cut sheets; and

• The ages of all minor employees.

• Requires a garment manufacturer or brand guarantor to be liable for the following (Sec. 5):

• The full amount of unpaid premium wages, reimbursement for expenses, damages, and penalties due to all employees who performed the operations;

• Liquidated damages owed to all employees who performed the operations;

• The employee’s reasonable attorney’s fees; and

• Civil penalties for failure to secure valid workers’ compensation coverage.

• Authorizes an employee to recover liquidated damages in an amount equal to the wages unlawfully withheld (Sec. 5).

• Authorizes the Labor Commissioner to investigate as to whether all employees of garment manufacturers are being paid all compensations (Sec. 5).

• Prohibits garment manufacturing employees to be paid by the piece, unit, or piece rate (Sec. 6).

• Requires the commissioner to deposit $75 of each registrant’s annual registration fee into a separate account known as the Garment Manufacturers Special Account. Funds shall be disbursed only to persons determined by the commissioner to have been damaged by the failure to pay compensation and benefits (Sec. 7).

Full Bill Text