Section § 2670

Explanation

This law section aims to clarify and strengthen protections for garment workers by ensuring companies contracting garment manufacturing are fully liable for unpaid wages and overtime, regardless of any intermediaries involved. The original Assembly Bill 633 intended to prevent wage theft by making manufacturers responsible for the wages of their garment workers. However, some manufacturers have avoided liabilities by using multiple contracting layers. This amendment reaffirms that regardless of contracting layers, prime contractors are liable for workers’ wages and must reimburse expenses to workers.

Additionally, the legislation acknowledges that funds intended to help underpaid workers have been insufficient due to frozen registration fees despite rising wage claims. A one-time budget appropriation helped temporarily, but a permanent structural change is needed. The law seeks to enforce regulations more effectively through penalties and sanctions to benefit public welfare and health. Local governments can enact worker protections that match or exceed those in this statute.

(a)CA Labor Code § 2670(a) It is the intent of the Legislature to restore the purpose of Assembly Bill 633 (Chapter 554 of the Statutes of 1999) to prevent wage theft against garment workers by clarifying ambiguities in the original language. Assembly Bill 633 sought to ensure that persons who contracted to have garments manufactured were liable as guarantors for the unpaid wages and overtime of the workers making their garments.
Several manufacturers, however, have attempted to avoid liability as a guarantor by adding layers of contracting between themselves and the employees manufacturing the garments. This undermines the purpose of Assembly Bill 633 because manufacturers have no incentive to ensure safe conditions or the proper minimum wage and overtime payments for the workers producing their garments if they do not face guarantor liability.
This act, therefore, revises this part to make clear that a person contracting to have garments made is liable for the full amount of unpaid minimum, regular, overtime, and other premium wages, as well as reimbursement for expenses owed to the workers who manufacture those garments regardless of how many layers of contracting that person may use.
Assembly Bill 633 was also designed to ensure that underpaid, and unpaid, garment workers would be able to recoup their stolen wages, even when factories shut down, declared bankruptcy, or otherwise shirked their obligations to lawfully pay their workers. In order to make sure that these workers were made whole, Assembly Bill 633 required that a portion of garment manufacturers’ annual registration or renewal fees be deposited into a fund. However, in the last 20 years, registration and renewal fees have remained frozen in place, while minimum wage and worker claims have risen steadily, meaning the revenues flowing into the fund have not kept up with the demands on the fund. As a result, workers who have already proven that they are owed stolen wages are on a waiting list, waiting anywhere from 5 to 20 years, to be paid. While the Legislature recently passed a budget with a one-time appropriation of funds temporarily eliminating the waiting list, structural change is necessary in order to permanently eliminate the hardship placed on garment workers who are unable to recoup their stolen wages within a reasonable amount of time.
(b)CA Labor Code § 2670(b) By restoring the original intent of this part, the Legislature will be able to more effectively establish and regulate a system of registration, penalties, confiscation, bonding requirements, and misdemeanors for the imposition of prompt and effective criminal and civil sanctions against violations of, and especially patterns and practices of violations of, any of the laws as set forth herein and regulations of this state applicable to the employment of workers in the garment industry. The civil penalties provided for in this part are in addition to any other penalty provided by law. This part shall be deemed an exercise of the police power of the state for the protection of the public welfare, prosperity, health, safety, and peace of the people of the State of California. Nothing herein shall prohibit a local municipality from enacting its own protections for workers employed in the garment industry, so long as those protections are equal to, or in addition to, the protections provided herein.

Section § 2671

Explanation

This section defines several key terms related to the garment manufacturing industry in California. It describes who is considered a 'person' within this part of the law, specifically including a broad range of businesses and individuals involved in garment manufacturing, while excluding those who work independently or solely in cleaning, alteration, or tailoring. It identifies 'garment manufacturers' as those who make garments but are not contractors.

'Garment manufacturing' involves a wide range of operations like sewing, cutting, and labeling, to prepare garments and accessories for sale. A 'brand guarantor' is someone who hires others to manufacture garments, which can include licensing a brand name.

'Contractors' are those who manage employees or others to carry out garment manufacturing activities for another entity. Lastly, 'Commissioner' refers to the Labor Commissioner, who can create and update regulations to keep these definitions current.

As used in this part:
(a)CA Labor Code § 2671(a) “Person” means any individual, partnership, corporation, limited liability company, or association, and includes, but is not limited to, employers, manufacturers, jobbers, wholesalers, contractors, subcontractors, and any other person or entity engaged in the business of garment manufacturing.
“Person” does not include any person who manufactures garments by oneself, without the assistance of a contractor, employee, or others; any person who engages solely in that part of the business engaged solely in cleaning, alteration, or tailoring; any person who engages in the activities herein regulated as an employee with wages as their sole compensation; or any person as provided by regulation.
(b)CA Labor Code § 2671(b) “Garment manufacturer” or “manufacturer” means any person who is engaged in garment manufacturing who is not a contractor.
(c)CA Labor Code § 2671(c) “Garment manufacturing” means sewing, cutting, making, processing, repairing, finishing, assembling, dyeing, altering a garment’s design, causing another person to alter a garment’s design, affixing a label to a garment, or otherwise preparing any garment or any article of wearing apparel or accessories designed or intended to be worn by any individual, including, but not limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and belts, for sale or resale by any person or any persons contracting to have those operations performed and other operations and practices in the apparel industry as may be identified in regulations of the Department of Industrial Relations consistent with the purposes of this part. The Labor Commissioner shall adopt, and may from time to time amend, regulations to clarify and refine this definition to be consistent with current and future industry practices, but the regulations shall not limit the scope of garment manufacturing, as defined in this subdivision. The definition in this subdivision is declaratory of existing law.
(d)CA Labor Code § 2671(d) “Brand guarantor” means any person contracting for the performance of garment manufacturing, regardless of whether the person with whom they contract performs the manufacturing operations or hires contractors or subcontractors to perform the manufacturing operations, which include sewing, cutting, making, processing, repairing, finishing, assembling, dyeing, altering a garment’s design, causing another person to alter a garment’s design, affixing a label on a garment, or otherwise preparing any garment or any article of wearing apparel or accessories designed or intended to be worn by any individual, including, but not limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and belts, for sale or resale and other operations and practices in the apparel industry as may be identified in regulations of the Department of Industrial Relations consistent with the purposes of this part. Contracts for the performance of garment manufacturing include licensing of a brand or name. The Labor Commissioner may adopt, and may from time to time amend, regulations to clarify and refine this definition to be consistent with current and future industry practices; however, the regulations shall not limit the scope of garment manufacturing, as defined in this section.
(e)CA Labor Code § 2671(e) “Commissioner” means the Labor Commissioner.
(f)CA Labor Code § 2671(f) “Contractor” means any person who, with the assistance of employees or others, is engaged in garment manufacturing by primarily engaging in sewing, cutting, making, processing, repairing, finishing, assembling, dyeing, altering a garment’s design, causing another person to alter a garment’s design, affixing a label on a garment, or otherwise preparing any garment or any article of wearing apparel or accessories designed or intended to be worn by any individual, including, but not limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and belts, for another person, including, but not limited to, another contractor, garment manufacturer, or brand guarantor. “Contractor” includes a subcontractor that is primarily engaged in those operations. The Labor Commissioner may adopt, and may from time to time amend, regulations to clarify and refine this definition to be consistent with current and future industry practices; however, the regulations shall not limit the scope of garment manufacturing, as defined in this section. The definition in this subdivision is declaratory of existing law.

Section § 2672

Explanation

This law allows the commissioner to create and enforce any needed rules to implement this part of the labor code. The commissioner has the discretion to impose penalties, revoke registrations, and seize or dispose of goods if there is a valid reason, all according to the established rules.

The commissioner shall promulgate all regulations and rules necessary to carry out the provisions of this part. The commissioner, upon good cause, may impose, in his or her discretion, the terms of penalties, the revocation of registrations, and the confiscation or disposal of goods in accordance with such rules and regulations.

Section § 2673

Explanation

If you're in the garment manufacturing business, you need to keep detailed records for four years. This includes information about your workers, such as names, addresses, daily hours, and wages. You must also track production details like piece rates and all contracts and agreements, including the prices you've agreed on with contractors. Additionally, you need a copy of the garment license for each contractor and details about any minor employees. Brand guarantors have similar recordkeeping duties, including recording contract prices and maintaining copies of garment licenses. These record requirements are on top of other legal obligations related to recordkeeping.

(a)CA Labor Code § 2673(a) Every employer engaged in the business of garment manufacturing shall keep accurate records for four years which show all of the following:
(1)CA Labor Code § 2673(a)(1) The names and addresses of all garment workers directly employed by such person.
(2)CA Labor Code § 2673(a)(2) The hours worked daily by employees, including the times the employees begin and end each work period.
(3)CA Labor Code § 2673(a)(3) The daily production sheets, including piece rates.
(4)CA Labor Code § 2673(a)(4) The wage and wage rates paid each payroll period.
(5)CA Labor Code § 2673(a)(5) The contract worksheets indicating the price per unit agreed to between the contractor and manufacturer.
(6)CA Labor Code § 2673(a)(6) All contracts, invoices, purchase orders, work or job orders, and style or cut sheets. This documentation shall include the business names, addresses, and contact information of the contracting parties.
(7)CA Labor Code § 2673(a)(7) A copy of the garment license of every person engaged in garment manufacturing who is required to register with the Labor Commissioner pursuant to Section 2675, and with whom the employer has entered into a contract for the performance of garment manufacturing.
(8)CA Labor Code § 2673(a)(8) The ages of all minor employees.
(9)CA Labor Code § 2673(a)(9) Any other conditions of employment.
(b)CA Labor Code § 2673(b) Brand guarantors shall keep accurate records for four years that show all of the following:
(1)CA Labor Code § 2673(b)(1) Contract worksheets indicating the price per unit agreed to between the brand guarantor and the contractor or manufacturer.
(2)CA Labor Code § 2673(b)(2) All contracts, invoices, purchase orders, work or job orders, and style or cut sheets. This documentation shall include the business names, addresses, and contract information of the contracting parties.
(3)CA Labor Code § 2673(b)(3) A copy of the garment license of every person engaged in garment manufacturing who is required to register with the Labor Commissioner pursuant to Section 2675, and with whom the employer has entered into a contract for the performance of garment manufacturing.
(c)CA Labor Code § 2673(c) The recordkeeping requirements in this section are in addition to the recordkeeping requirements set forth in this code, the California Code of Regulations, and in the Industrial Welfare Commission wage orders.

Section § 2673.1

Explanation

This law ensures garment workers are paid fully for hours worked by holding garment manufacturers, contractors, and brand guarantors jointly responsible for any unpaid wages, including overtime and other compensation. They are also responsible for an employee's legal fees if the employee wins a wage dispute. If a violation occurs, employees can file a claim with the Labor Commissioner, who will investigate, attempt to resolve the dispute, and hold hearings to determine liability.

Manufacturers and contractors must provide records to prove claims are invalid; otherwise, employee claims will be presumed valid. The law allows for court appeals of Labor Commissioner decisions and requires a financial bond from the party appealing, except employees.

The Labor Commissioner can enforce wage payments through investigations or civil actions and can revoke business registrations for non-payment. While payments do not equate to being a joint employer, contractors, manufacturers, and brand guarantors can face penalties for non-compliance, which are payable to employees.

(a)Copy CA Labor Code § 2673.1(a)
(1)Copy CA Labor Code § 2673.1(a)(1) To ensure that employees are paid for all hours worked, a garment manufacturer, contractor, or brand guarantor, who contracts with another person for the performance of garment manufacturing operations, shall be jointly and severally liable with any manufacturer and contractor who performs those operations for the garment manufacturer or brand guarantor, for all of the following:
(A)CA Labor Code § 2673.1(a)(1)(A) The full amount of unpaid minimum, regular, overtime, and other premium wages, reimbursement for expenses, and any other compensation, including interest, due to any and all employees who performed the manufacturing operations for any violation of this code.
(B)CA Labor Code § 2673.1(a)(1)(B) The employee’s reasonable attorney’s fees and costs pursuant to subdivision (e).
(C)CA Labor Code § 2673.1(a)(1)(C) Civil penalties for the failure to secure valid workers’ compensation coverage as required by Section 3700.
(2)CA Labor Code § 2673.1(a)(2) Nothing in this section shall prevent or prohibit two or more parties, who are held jointly and severally liable under this section after a final judgment is rendered by the court, from establishing, exercising, or enforcing, by contract or otherwise, any lawful or equitable remedies, including, but not limited to, a right of contribution and indemnity against each other for liability created by acts of the other.
(3)CA Labor Code § 2673.1(a)(3) Nothing in this section shall prevent, prohibit, or limit the liability of garment manufacturers or contractors for damages and penalties owed to an employee due to violations of this section.
(b)CA Labor Code § 2673.1(b) In addition to the liability imposed pursuant to subdivision (a), garment manufacturers and contractors shall be liable for the full amount of damages and penalties, including interest, due to any and all employees, for a violation of this code. Damages shall include liquidated damages in an amount equal to the wages unlawfully withheld, as set forth in Section 1194.2, and liquidated damages in an amount equal to unpaid overtime compensation due. If two or more persons are performing work at the same worksite, during the same payroll period, the liability of each person shall be limited to their proportionate share, as determined by the Labor Commissioner, pursuant to paragraph (3) or (4) of subdivision (d).
(c)CA Labor Code § 2673.1(c) Employees may enforce this section solely by filing a claim with the Labor Commissioner against the contractor, the garment manufacturer, and the brand guarantor, if known, to recover unpaid wages and associated penalties. Garment manufacturers and brand guarantors whose identity or existence is unknown at the time the claim is filed may be added to the claim pursuant to paragraph (2) of subdivision (d).
(d)CA Labor Code § 2673.1(d) Claims filed with the Labor Commissioner pursuant to subdivision (c) shall be subject to the following procedure:
(1)CA Labor Code § 2673.1(d)(1) Within 10 business days of receiving a claim pursuant to subdivision (c), the Labor Commissioner shall give written notice to the employee, the contractor, and the identified manufacturer and brand guarantors of the nature of the claim and the date of the meet-and-confer conference on the claim. Within 10 business days of receiving the claim, the Labor Commissioner shall issue a subpoena duces tecum requiring the contractor and any identified manufacturer and brand guarantor to submit to the Labor Commissioner those books and records as may be necessary to investigate the claim and determine the identity of any potential manufacturers and brand guarantors for the payment of the wage claim, including, but not limited to, invoices for work performed by any and all persons during the period included in the claim. Compliance with a request for books and records, within 10 days of the mailing of the notice, shall be a condition of continued registration pursuant to Section 2675. At the request of any party, the Labor Commissioner shall provide to that party copies of all books and records received by the Labor Commissioner in conducting its investigation.
(2)CA Labor Code § 2673.1(d)(2) Within 30 days of receiving a claim pursuant to subdivision (c), the Labor Commissioner shall send a notice of the claim and of the meet-and-confer conference to any other person who may be a manufacturer or brand guarantor with respect to the claim.
(3)CA Labor Code § 2673.1(d)(3) Within 60 days of receiving a claim pursuant to subdivision (c), the Labor Commissioner shall hold a meet-and-confer conference with the employee, the contractor, and all identified manufacturers and brand guarantors to attempt to resolve the claim. Prior to the meet-and-confer conference, the Labor Commissioner shall conduct and complete an investigation of the claim, shall make an assessment of the amount of wages, damages, penalties, expenses, and other compensation owed, and shall conduct an investigation and determine liability pursuant to subdivisions (a) and (b). At that same time, the Labor Commissioner shall also investigate and determine the proportionate liability pursuant to subdivision (b). The investigation shall include, but not be limited to, interviewing the employee and their witnesses and making an assessment of the amounts due, if any, to the employee. If an employee provides the Labor Commissioner with labels, or the equivalent thereto, from a brand guarantor or garment manufacturer, or other information that the commissioner finds credible relating to the identity of any brand guarantor or garment manufacturer for whom the employee performed garment manufacturing operations, there shall be a presumption that the brand guarantor or garment manufacturer is liable with the contractor for any amounts found to be due to the employee, as set forth in paragraph (1) of subdivision (a). An employee’s claim of hours worked, and wages, damages, penalties, expenses, and other compensation due, including the claim of liability of a brand guarantor or garment manufacturer upon provision by the employee of labels or other credible information about work performed for any person, shall be presumed valid and shall be the Labor Commissioner’s assessment, unless the brand guarantor, garment manufacturer, or contractor provides specific, compelling, and reliable written evidence to the contrary. That evidence from the brand guarantor, garment manufacturer, or contractor shall include accurate, complete, and contemporaneous records pursuant to Sections 226, 1174, and 2673, and the industrial commission wage order, including, but not limited to, itemized wage deduction statements, bona fide complete and accurate payroll records, evidence of the precise hours worked by the employee for each pay period during the period of the claim, and evidence, including a purchase order or invoice identifying the person or persons for whom garment manufacturing operations were performed. In the absence of the provision of that evidence, or the failure to timely respond to a subpoena pursuant to paragraph (1), a written declaration from a brand guarantor, garment manufacturer, or contractor is not sufficient to rebut the presumption of validity of the worker’s claim and liability of the respective parties. If the Labor Commissioner finds falsification by the garment manufacturer or contractor of payroll records submitted for any pay period of the claim, any other payroll records submitted by the garment manufacturer or contractor shall be presumed false and disregarded.
The Labor Commissioner shall present their assessment of the amount of wages, and each contractor’s or each garment manufacturer’s proportionate shares of damages and penalties, owed to the parties at the meet-and-confer conference and shall make a demand for payment of the amount of the assessment. If no resolution is reached, the Labor Commissioner shall, at the meet-and-confer conference, set the matter for hearing pursuant to paragraph (4).
(4)CA Labor Code § 2673.1(4) The hearing shall commence within 30 days of, and shall be completed within 45 days of, the date of the meet-and-confer conference. The hearing may be bifurcated, addressing first the question of wages and other compensation owed, as well as liability of the garment manufacturers, brand guarantors, and contractors, and, immediately thereafter, the proportionate responsibility of the damages and penalties for which each contractor or garment manufacturer is liable, pursuant to subdivision (c). The Labor Commissioner shall present their findings and assessments at the hearing. Any party may present evidence at the hearing to support or rebut the proposed findings and assessments. If an employee has provided the Labor Commissioner with labels, or the equivalent thereto, from a brand guarantor or garment manufacturer, or provides other information or testimony that the Labor Commissioner finds credible relating to the identity of any brand guarantor or garment manufacturer, for whom the employee performed garment manufacturing operations, there shall be a presumption that the brand guarantor or garment manufacturer is liable with the contractor for any amounts found to be due to the employee, as set forth in paragraph (1) of subdivision (a). A written declaration or testimony from a brand guarantor, garment manufacturer, or contractor is not sufficient to rebut the presumption of liability of the respective parties. If the Labor Commissioner finds falsification by the garment manufacturer or contractor of payroll records submitted for any pay period of the claim, any other payroll records submitted by the garment manufacturer or contractor shall be presumed false and disregarded. Except as provided in this paragraph, the hearing shall be held in accordance with the procedure set forth in subdivisions (b) to (h), inclusive, of Section 98. It is the intent of the Legislature that these hearings be conducted in an informal setting preserving the rights of the parties.
(5)CA Labor Code § 2673.1(5) Within 15 days of the completion of the hearing, the Labor Commissioner shall issue an order, decision, or award with respect to the claim and shall file the order, decision, or award in accordance with Section 98.1.
(e)CA Labor Code § 2673.1(e) If either the contractor, garment manufacturer, or brand guarantor refuses to pay the assessment, and the employee prevails at the hearing, the party that refuses to pay shall pay the employee’s reasonable attorney’s fees and costs. If the employee rejects the assessment of the Labor Commissioner and prevails at the hearing, the contractor shall pay the employee’s reasonable attorney’s fees and costs. The garment manufacturer and brand guarantor shall be jointly and severally liable with the contractor for the attorney’s fees and costs awarded to an employee.
(f)CA Labor Code § 2673.1(f) Any party shall have the right to judicial review of the order, decision, or award of the Labor Commissioner made pursuant to paragraph (5) of subdivision (d) as provided in Section 98.2. As a condition precedent to filing an appeal, the contractor, garment manufacturer, or brand guarantor, whichever appeals, shall post a bond with the Labor Commissioner in an amount equal to one and one-half times the amount of the award. No bond shall be required of an employee filing an appeal pursuant to Section 98.2. At the employee’s request, the Labor Commissioner shall represent the employee in the judicial review as provided in Section 98.4.
(g)CA Labor Code § 2673.1(g) If the contractor, garment manufacturer, or brand guarantor appeals the order, decision, or award of the Labor Commissioner and the employee prevails on appeal, the court shall order the contractor, garment manufacturer, or brand guarantor, as the case may be, to pay the reasonable attorney’s fees and costs of the employee incurred in pursuing their claim. If the employee appeals the order, decision, or award of the Labor Commissioner and the contractor, garment manufacturer, or brand guarantor prevails on appeal, the court may order the employee to pay the reasonable attorney’s fees and costs of the contractor, garment manufacturer, or brand guarantor only if the court determines that the employee acted in bad faith in bringing the claim.
(h)CA Labor Code § 2673.1(h) The rights and remedies provided by this section do not preclude an employee from pursuing any other rights and remedies under any other provision of state or federal law. If a finding and assessment is not issued as specified and within the time limits in paragraph (3) of subdivision (d), the employee may bring a civil action for the recovery of unpaid wages pursuant to any other rights and remedies under any other provision of the laws of this state unless, prior to the employee bringing the civil action, the garment manufacturer or brand guarantor files a petition for writ of mandate within 10 days of the date the assessment should have been issued. If findings and assessments are not made, or a hearing is not commenced or an order, decision, or award is not issued within the time limits specified in paragraphs (4) and (5) of subdivision (d), any party may file a petition for writ of mandate to compel the Labor Commissioner to issue findings and assessments, commence the hearing, or issue the order, decision, or award. All time requirements specified in this section shall be mandatory and shall be enforceable by a writ of mandate.
(i)CA Labor Code § 2673.1(i) The Labor Commissioner may enforce the joint and several liability of a garment manufacturer or brand guarantor described in this section in the same manner as a proceeding against the contractor. The Labor Commissioner may, with or without a complaint being filed by an employee, conduct an investigation as to whether all the employees of persons engaged in garment manufacturing are being paid all minimum, regular, overtime, and other premium wages, reimbursement for expenses, any other compensation, damages, and penalties due and, with or without the consent of the employees affected, commence a civil action to enforce joint and several liability described in this section. Prior to commencing such a civil action and pursuant to rules of practice and procedure adopted by the Labor Commissioner, the commissioner shall provide notice of the investigation to the garment manufacturer or brand guarantor and the employee, issue findings and an assessment of the amount of wages due, hold a meet-and-confer conference with the parties to attempt to resolve the matter, and provide for a hearing.
(j)CA Labor Code § 2673.1(j) Except as expressly provided in this section, this section shall not be deemed to create any new right to bring a civil action of any kind for unpaid minimum, regular, overtime, and other premium wages, reimbursement for expenses, any other compensation, damages, penalties, attorney’s fees, or costs against a brand guarantor, garment manufacturer, or contractor.
(k)CA Labor Code § 2673.1(k) The payment of the wages provided in this section shall not be used as a basis for finding that the brand guarantor or registered garment manufacturer making the payment is a joint employer, coemployer, or single employer of any employees of a contractor that is also a registered garment manufacturer.
(l)CA Labor Code § 2673.1(l) The Labor Commissioner may, in their discretion, revoke, deny, or suspend the registration under this part of any registrant that fails to pay, on a timely basis, any wages awarded pursuant to this section, after the award has become final. This subdivision is declaratory of existing law.
(m)CA Labor Code § 2673.1(m) The Labor Commissioner may also enforce this section by issuing stop orders or citations. The procedures for issuing, contesting, and enforcing judgments for citations issued by the Labor Commissioner under this section shall be the same as those set forth in subdivisions (b) to (k), inclusive, of Section 1197.1.
(n)CA Labor Code § 2673.1(n) Any statutory damages or penalties recovered or assessed in an action brought under this section shall be payable to the employee.

Section § 2673.2

Explanation

This law states that garment workers in California must be paid by the hour, not by how many items they make, and their pay must not be less than the minimum wage. However, employers can still offer bonuses based on performance.

Garment workers covered by certain union agreements, which ensure better conditions and higher pay than the state minimum, are exempt from this rule.

If companies pay by the piece instead of hourly, they can be fined $200 per employee for each pay period they're paid incorrectly. Workers can only file claims through the Labor Commissioner, who can also take legal action against violators.

Any compensation from these actions goes directly to the workers.

(a)CA Labor Code § 2673.2(a) To ensure that employees are paid for all hours worked, an employee engaged in the performance of garment manufacturing shall not be paid by the piece or unit, or by the piece rate. Employees engaged in the performance of garment manufacturing shall be paid at an hourly rate not less than the applicable minimum wage.
(b)CA Labor Code § 2673.2(b)  Nothing in this section shall be deemed to prohibit incentive-based bonuses.
(c)CA Labor Code § 2673.2(c) This section shall not apply to workplaces where employees are covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, and working conditions of the employees; premium wage rates for all overtime hours worked and a regular hourly rate of pay for those employees of not less than 30 percent more than the state minimum wage; stewards or monitors; and a process to resolve disputes concerning nonpayment of wages.
(d)CA Labor Code § 2673.2(d) In addition to, and entirely independent and apart from, any other damages or penalties provided in this code, any garment manufacturer or contractor who violates subdivision (a) shall be subject to compensatory damages of two hundred dollars ($200) per employee for each pay period in which each employee is paid by the piece rate.
(e)CA Labor Code § 2673.2(e) This section may be enforced solely by filing a claim with the Labor Commissioner against the contractor or garment manufacturer, if known. Garment manufacturers or contractors whose identity or existence is unknown at the time that the claim is filed may be added to the claim pursuant to paragraph (2) of subdivision (c) of Section 2673.1.
(f)CA Labor Code § 2673.2(f) Notwithstanding the provisions of this section, the Labor Commissioner may also bring an action to enforce this section under Section 98.3 or issue a citation against the garment manufacturer or contractors who violate this section. Those garment manufacturers or contractors shall be subject to compensatory damages of two hundred dollars ($200) per employee paid by the piece rate per pay period. The procedure for issuing, contesting, and enforcing judgments for citations issued by the commissioner pursuant to this section shall be the same as those set forth in subdivisions (b) to (l), inclusive, of Section 1197.1.
(g)CA Labor Code § 2673.2(g) Any statutory damages or penalties recovered or assessed in an action brought under, or a citation issued by the Labor Commissioner pursuant to, this section or Section 98.3, shall be payable to the employee.

Section § 2674

Explanation

This law mandates that the Division of Labor Standards Enforcement (DLSE) is responsible for ensuring compliance with Section 2673 and the sections beginning with 2675 in Chapter 2. Essentially, the DLSE must enforce these labor regulations.

The Division of Labor Standards Enforcement shall enforce Section 2673 and Chapter 2 (commencing with Section 2675).

Section § 2674.1

Explanation

This law requires the commissioner to create an advisory committee for the garment manufacturing industry. The committee's role is to provide feedback on common industry issues and serve as a link between the commissioner's office and different industry segments. Members will include representatives from unions, employees, contractor associations, jobbers, and manufacturers.

The commissioner shall appoint an advisory committee on garment manufacturing to advise him or her of common industry problems and to effect liaison between his or her office and various segments of the industry. The committee shall consist of a cross section of the industry and shall include representatives of unions, employees, contractor associations, jobbers, and manufacturers.

Section § 2674.2

Explanation

This law requires the Governor to include a detailed cost report and revenue estimate for regulations in the annual budget submitted to the Legislature. The purpose is to ensure that the fees and other revenue generated are enough to cover all state costs related to these regulations.

In the annual budget submitted to the Legislature pursuant to Section 12 of Article IV of the California Constitution, the Governor shall include a detailed statement of the cost of regulation and estimated revenues pursuant to the provisions of this part. The Legislature intends that the fees established and other revenue received pursuant to this part shall provide sufficient funds to meet all state costs incurred pursuant to this part.