Garment ManufacturingRegistration
Section § 2675
This law requires anyone in the garment manufacturing business to register with the Labor Commissioner. To register or renew, you must fill out an application detailing your character and business details, pay a fee, and have a workers’ compensation policy. If you've been penalized in the last three years, a surety bond is also needed to ensure compliance with laws.
The law mandates that applicants demonstrate knowledge of safety regulations and labor laws through exams, which cover things like injury prevention and fire safety. You must also commit to training your employees in these safety measures. The commissioner will provide necessary information and exams in the primary language of the applicant, mostly involving safety standards during manufacturing.
Registrations must be renewed annually, and officials will notify you of upcoming expirations, though you're still responsible for timely renewals.
Section § 2675.2
If you submit your renewal application for registration to the Labor Commissioner 30 days before it expires, and it's not processed in time, you might get a 90-day extension. But, you need to have completed all parts of the application, paid any fines or wages you owe, and met any bonding and registration requirements. If there are special circumstances, you might still get an extension even if you submitted late.
Section § 2675.5
This law requires that $75 from each garment business's annual registration fee be put into a special fund. This fund is used to pay workers who didn't get their wages or benefits because of violations by any garment manufacturer, brand, or contractor. The Labor Commissioner handles these payments and can also recover the money if they later find the responsible party. If any money is recovered, it goes back into the special fund to help more workers.
The rest of the registration fee is stored in another account. It's used to cover administrative costs related to managing specific garment industry regulations, but only if the Legislature allows it.
Section § 2676
If someone runs a garment manufacturing business without being registered, they are committing a misdemeanor unless there's an exception mentioned in another part of the law.
Section § 2676.5
This law requires garment manufacturers in California to clearly display their name, address, and registration number at the front entrance of their business premises. The letters must be at least three inches high. If the entrance is inside a building, the information should also be visible near the main exterior entrance. However, the Labor Commissioner can waive these requirements if the business layout makes compliance impractical. This law does not apply to showrooms unless they are significantly involved in garment manufacturing. A showroom is defined as a space for displaying or selling merchandise.
Section § 2676.7
If you want to start a garment manufacturing business, you need to be registered with the Division of Labor Standards Enforcement before getting a business license or permit from any local agency. You must show proof of this registration using the official form from Section 2675. However, you can apply for the business license or permit even if you're not yet registered, but you will need to complete the registration to get the license or permit.
Section § 2676.55
If someone doesn't follow specific garment manufacturing rules (as outlined in Section 2676.5), they can be fined. The first time, it's $100 per day they're not compliant, and if they continue not to comply, it's $200 per day. The Labor Commissioner has the power to issue fines if an inspection shows a violation. This rule is in addition to other possible legal penalties.
Section § 2677
This law states that if you're in the garment manufacturing business and hire another garment manufacturer who hasn't registered or posted a bond with the labor commissioner, you're considered their employer. This makes you both responsible for following certain labor laws.
If an employee works for an unregistered garment manufacturer, they can sue the employer (as defined above) to get their wages or other damages owed due to law violations, or they can file a claim with the Labor Commissioner. If the employee wins in court, the employer must cover their legal fees and costs.
Section § 2677.5
This law makes it illegal for someone who is registered under this chapter and working with another registered person to conduct business in ways that could lead to breaking the rules of this chapter.
Section § 2678
This law section outlines penalties for violations by people in the garment industry. If someone doesn't follow specific rules, like payment deadlines or registration requirements, they can be fined.
Penalties include $100 per employee for a first offense and $200 per employee for repeat offenses. If the violator doesn't have any employees, the penalty is a flat $500, but it won't count as a misdemeanor offense.
All penalty notices must be in writing and explain what rule was broken.
Section § 2679
If an employer breaks certain wage laws, the commissioner might ask them to put up a bond, which is like insurance money, up to $10,000. This bond ensures the employer pays their workers properly as per the rules. Instead of a bond, the commissioner might accept other proof that the employer can pay their employees.
If the employer breaks the law again within two years, the bond requirement becomes mandatory. If there are three or more violations in two years, the commissioner can suspend the employer’s registration or even confiscate garments if the violations are about issues like minimum wage, child labor, or overtime. If garments are taken, the commissioner must inform the garment owners and arrange for their return once the employer pays for their violations.
Section § 2680
This law focuses on garment manufacturing regulations. If a person doesn't register as required, the Division of Labor Standards Enforcement can confiscate any garments they assemble. These clothes are destroyed or otherwise disposed of but not sold. The manufacturers and contractors will be notified of the confiscation.
If a contractor has already had their garments confiscated within the last five years, not only will their garments be confiscated again, but the Labor Commissioner can also seize their manufacturing equipment and property. This harsher penalty doesn't apply if they just delayed renewing their registration.
The money from selling seized equipment or property goes into a fund, which is used to pay back wages to garment workers and cover taxes. This use of funds is decided by the Labor Commissioner and requires legislative approval.
Section § 2680.5
This law gives the commissioner the power to look into and help resolve disputes over pricing and quality that happen because of written contracts between manufacturers and contractors in the garment industry.
Section § 2681
If someone is fined or has their goods taken by the Labor Commissioner, they can either pay up within 15 days or choose to fight it. If they want to contest, they must write to the Labor Commissioner for a hearing within 15 days. The hearing will review the charges or confiscation, and a decision will be made. If goods are involved, the hearing happens within 10 days. The decision, once mailed, makes any amount owed payable in 45 days. If you disagree, you can appeal to the superior court within 45 days, but you must agree to pay any eventual costs. If you don't contest, the state can file the penalty as a judgment against you in court.
If the hearing confirms the fine or confiscation, this too can be filed as a court judgment. These judgments have the same legal effect as other tax-related judgments and earn interest like any other court judgment. There's no fee from the clerk for this service.
Section § 2682
This law states that any money collected from violations will first go to pay affected employees the wages they are owed. If there isn't enough money to pay everyone, it will be split proportionally among the workers. Any leftover funds after the workers have been paid will go to the state's General Fund.
Section § 2684
This California law targets businesses mainly involved in sewing or assembling garments for others. It addresses how some of these businesses may close and reopen just to avoid paying wages owed to employees. The law makes a new business owner, called a 'successor,' responsible for those unpaid wages if they continue using the same facilities, workforce, or management as the previous owner. This rule applies if they share management with the previous business, employ former managers, or are related to previous owners. However, it does not apply to unpaid minimum wages and overtime laid out in another specific law.