Section § 2675

Explanation

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.

(a)CA Labor Code § 2675(a) For purposes of enforcing this part and Sections 204, 209, 212, 221, 222, 222.5, 223, 226, 227, and 227.5, Chapter 2 (commencing with Section 300) and Article 2 (commencing with Section 400) of Chapter 3 of Part 1 of this division, Sections 1195.5, 1197, 1197.5, and 1198, Division 4 (commencing with Section 3200) and Division 4.7 (commencing with Section 6200), every person engaged in the business of garment manufacturing, shall register with the commissioner.
The commissioner shall not permit any person to register, nor shall the commissioner allow any person to renew registration, until all the following conditions are satisfied:
(1)CA Labor Code § 2675(1) The person has executed a written application therefor in a form prescribed by the commissioner, subscribed and sworn by the person, and containing:
(A)CA Labor Code § 2675(1)(A) A statement by the person of all facts required by the commissioner concerning the applicant’s character, competency, responsibility, and the manner and method by which the person proposes to engage in the business of garment manufacturing if the registration is issued.
(B)CA Labor Code § 2675(1)(B) The names and addresses of all persons, except bona fide employees on stated salaries, financially interested, either as partners, associates, or profit sharers, in the proposed business of garment manufacturing together with the amount of their respective interests, except that in the case of a publicly traded corporation a listing of principal officers shall suffice.
(2)CA Labor Code § 2675(2) The commissioner, after investigation, is satisfied as to the character, competency, and responsibility of the person.
(3)CA Labor Code § 2675(3) In the case of a person who has been cited and penalized within the prior three years under this part, the person has deposited or has on file a surety bond in the sum and form that the commissioner deems sufficient and adequate to ensure future compliance, not to exceed five thousand dollars ($5,000). The bond shall be payable to the people of California and shall be for the benefit of any employee of a registrant damaged by the registrant’s failure to pay wages and fringe benefits, or for the benefit of any employee of a registrant damaged by a violation of Section 2677.5.
(4)CA Labor Code § 2675(4) The person has documented that a current workers’ compensation insurance policy is in effect for the employees of the person seeking registration.
(5)CA Labor Code § 2675(5) The person has paid an initial or renewal registration fee to the commissioner. The fee for initial registration and for each registration renewal shall be established in an amount determined by the Labor Commissioner to be sufficient to defray the costs of administering this part and shall be based on the applicant’s annual volume, but shall be not less than two hundred fifty dollars ($250) and shall be not more than one thousand dollars ($1,000) for contractors and two thousand five hundred dollars ($2,500) for all other registrants.
(b)CA Labor Code § 2675(b) At the time a certificate of registration is originally issued or renewed, the commissioner shall provide related and supplemental information regarding business administration and applicable labor laws. This related and supplemental information, as much as reasonably possible, shall be provided in the primary language of the garment manufacturer. The information shall include all subject matter on which persons seeking registration are examined pursuant to subdivision (c), and shall be available to persons seeking registration prior to taking this examination.
(c)CA Labor Code § 2675(c) Effective January 1, 1991, persons seeking registration under this section for the first time, and persons seeking to renew their registration pursuant to subdivision (f), shall comply with all of the following requirements:
(1)CA Labor Code § 2675(c)(1) Demonstrate, by an oral or written examination, or both, knowledge of the pertinent laws and administrative regulations concerning garment manufacturing as the commissioner deems necessary for the safety and protection of garment workers.
(2)CA Labor Code § 2675(c)(2) Demonstrate, by an oral or written examination, or both, knowledge of state laws and regulations relating to occupational safety and health which shall include, but not be limited to, the following:
(A)CA Labor Code § 2675(c)(2)(A) Section 3203 of Title 8 of the California Code of Regulations (Injury Prevention Program).
(B)CA Labor Code § 2675(c)(2)(B) Section 3220 of Title 8 of the California Code of Regulations (Emergency Action Plan).
(C)CA Labor Code § 2675(c)(2)(C) Section 3221 of Title 8 of the California Code of Regulations (Fire Prevention Plan).
(D)CA Labor Code § 2675(c)(2)(D) Section 6151 of Title 8 of the California Code of Regulations which provides for the placement, use, maintenance, and testing of portable fire extinguishers provided for the use of employees.
(3)CA Labor Code § 2675(c)(3) Sign a statement which provides that he or she shall do all of the following:
(A)CA Labor Code § 2675(c)(3)(A) Comply with those regulations specified in paragraph (2) which establish minimum standards for securing safety in all places of employment.
(B)CA Labor Code § 2675(c)(3)(B) Ensure that all employees are made aware of the existence of these regulations and any other applicable laws and are instructed in how to implement the Injury Prevention Program, Emergency Action Plan, and Fire Prevention Plan, specified in paragraph (2), in the workplace.
(C)CA Labor Code § 2675(c)(3)(C) Ensure that all employees are instructed in the use of portable fire extinguishers.
(D)CA Labor Code § 2675(c)(3)(D) Post the Injury Prevention Program, Emergency Action Plan, and Fire Prevention Plan, specified in paragraph (2), in a prominent location in the workplace.
(d)CA Labor Code § 2675(d) The Division of Occupational Safety and Health shall assist the Division of Labor Standards Enforcement in developing the examination which shall include, but not be limited to, the state’s occupational safety and health laws specified in paragraph (2) of subdivision (c).
(e)CA Labor Code § 2675(e) The commissioner shall charge a fee to persons taking the examinations required by subdivision (c) which is sufficient to pay for costs incurred in administering the examinations.
(f)CA Labor Code § 2675(f) A person seeking renewal of registration shall be required to take both of the examinations, and sign the statement, specified in subdivision (c). However, once a renewal of registration has been granted based on these examinations, subsequent examinations shall only be required at the discretion of the commissioner if, in the preceding year, the registrant has been found to be in violation of subdivision (a) or any of the sections enumerated in that subdivision.
(g)CA Labor Code § 2675(g) Proof of registration shall be by an official Division of Labor Standards Enforcement registration form. Every person, as set forth in Section 2671, shall post the registration form where it may be read by employees during the workday.
(h)CA Labor Code § 2675(h) At least 90 days prior to the expiration of each registrant’s registration, the commissioner shall mail a renewal notice to the last known address of the registrant. The notice shall include all necessary application forms and complete instructions for registration renewal. However, omission of the commissioner to provide notice in accordance with this subdivision shall not excuse a registrant from making timely application for renewal of registration, shall not be a defense in any action or proceeding involving failure to renew registration, and shall not subject the commissioner to any legal liability under this section.

Section § 2675.2

Explanation

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.

Whenever an application for renewal of registration is received by the Labor Commissioner 30 days prior to the expiration of the registration, and the Labor Commissioner cannot process the application before the expiration date, the Labor Commissioner may extend the registration for no more than 90 days if the applicant has submitted a complete application, owes no outstanding penalties, owes no back wages, meets all applicable bonding requirements, and meets all other requirements for registration. Upon a showing of extenuating circumstances, the Labor Commissioner may provide such an extension with respect to a renewal application not received 30 or more days prior to expiration.

Section § 2675.5

Explanation

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.

(a)CA Labor Code § 2675.5(a) The commissioner shall deposit seventy-five dollars ($75) of each registrant’s annual registration fee, required pursuant to paragraph (5) of subdivision (a) of Section 2675, into one separate account. Funds from the separate account shall be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and benefits by any garment manufacturer, brand guarantor, or contractor.
(1)CA Labor Code § 2675.5(a)(1) In making these determinations, the Labor Commissioner shall disburse amounts from the fund to ensure the payment of wages and benefits, interest, and any damages or other monetary relief arising from the violation of orders of the Industrial Welfare Commission or from a violation of this code, including statutory penalties recoverable by an employee, determined to be due to a garment worker by a registered or unregistered garment business.
(2)CA Labor Code § 2675.5(a)(2) A disbursement shall be made pursuant to a claim for recovery from the fund in accordance with procedures prescribed by the Labor Commissioner.
(3)CA Labor Code § 2675.5(a)(3) Any disbursed funds subsequently recovered by the Labor Commissioner, pursuant to an assignment of the claim to the commissioner for recovery, including recovery from a surety under a bond pursuant to Section 2675, or otherwise recovered by the Labor Commissioner from a liable party, shall be returned to the separate account.
(b)CA Labor Code § 2675.5(b) The remainder of each registrant’s annual registration fee not deposited into the special account pursuant to subdivision (a) shall be deposited in a subaccount and applied to costs incurred by the commissioner in administering the provisions of Section 2673.1, Section 2675, and this section, upon appropriation by the Legislature.

Section § 2676

Explanation

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.

Any person engaged in the business of garment manufacturing who is not registered is guilty of a misdemeanor, except as provided in subdivision (d) of Section 2678.

Section § 2676.5

Explanation

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.

(a)CA Labor Code § 2676.5(a) Every person registered as a garment manufacturer shall display on the front entrance of his or her business premise, and also, if the front entrance is within the interior of a building, on or near the main exterior entrance of the building in which his or her business premise is located, his or her name, address, and garment manufacturing registration number, all in letters not less than three inches high.
(b)CA Labor Code § 2676.5(b) The Labor Commissioner may waive the requirements of this section if he or she finds compliance to be unfeasible due to the design or layout of a business premise.
(c)CA Labor Code § 2676.5(c) This section shall not apply to a showroom or a building containing a showroom if no garment manufacturing or only incidental garment manufacturing is conducted in the showroom or the building.
(d)CA Labor Code § 2676.5(d) As used in this section, “showroom” means a room where merchandise is exposed for sale or where samples are displayed.

Section § 2676.7

Explanation

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.

Any local agency which issues business licenses or permits shall require, as a condition of issuing any business license or permit for a garment manufacturing business, proof that the person applying for the license or permit is registered pursuant to this chapter. The official Division of Labor Standards Enforcement registration form issued pursuant to Section 2675 shall constitute proof of registration.
A person may apply for a business license or permit prior to registration with the commissioner.

Section § 2676.55

Explanation

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.

(a)CA Labor Code § 2676.55(a) Any person who fails to comply with Section 2676.5 shall be subject to a civil penalty, for which a citation may be issued as follows:
(1)CA Labor Code § 2676.55(a)(1) For an initial citation, one hundred dollars ($100) for each calendar day that the person engages or has engaged in garment manufacturing, as defined in Section 2671, without complying with Section 2676.5.
(2)CA Labor Code § 2676.55(a)(2) For any subsequent citation, two hundred dollars ($200) for each calendar day that the person engages or has engaged in garment manufacturing, as defined in Section 2671, without complying with Section 2676.5.
(b)CA Labor Code § 2676.55(b) If, upon inspection or investigation, the Labor Commissioner determines that a person has violated Section 2676.5, the Labor Commissioner may issue a citation to the person in violation. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the Labor Commissioner for a violation of Section 2676.5 shall be the same as those set out in Section 2681.
(c)CA Labor Code § 2676.55(c) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law.

Section § 2677

Explanation

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.

(a)CA Labor Code § 2677(a) Any person engaged in the business of garment manufacturing who contracts with any other person similarly engaged who has not registered with the commissioner or does not have a valid bond on file with the commissioner, as required by Section 2675, shall be deemed an employer, and shall be jointly liable with such other person for any violation of Section 2675 and the sections enumerated in that section.
(b)CA Labor Code § 2677(b) Any employee of a person or persons engaged in garment manufacturing who are not registered as required by this part may bring a civil action against any person deemed to be an employer pursuant to subdivision (a) to recover any wages, damages, or penalties to which the employee may be entitled because of a violation by the unregistered person or persons of any provision specified in subdivision (a) of Section 2675, or may file a claim with the Labor Commissioner pursuant to Section 2673.1. In any civil action brought pursuant to this subdivision, the court shall grant a prevailing plaintiff’s reasonable attorney’s fees and costs.

Section § 2677.5

Explanation

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.

It shall be illegal for any person registered pursuant to this chapter and contracting with another registrant to engage in any business practice which causes or is likely to cause a violation of this chapter.

Section § 2678

Explanation

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.

(a)CA Labor Code § 2678(a) A penalty, as provided in subdivision (c), may be imposed against any person for any of the following:
(1)CA Labor Code § 2678(a)(1) Failure to comply within 15 days of any judgment due for violation of any labor laws applicable to garment industry workers.
(2)CA Labor Code § 2678(a)(2) Failure to comply with the registration requirements of this part.
(3)CA Labor Code § 2678(a)(3) Failure to comply with Section 2673 or any section enumerated in Section 2675.
(b)CA Labor Code § 2678(b) The order imposing the penalty may be served personally or by registered mail in accordance with subdivision (c) of Section 11505 of the Government Code. The order shall be in writing and shall describe the nature of the violation, including reference to the statutory provisions, rules, or regulations alleged to have been violated.
(c)CA Labor Code § 2678(c) The penalties shall be a civil penalty of one hundred dollars ($100) for each affected employee for the initial violation and a civil penalty of two hundred dollars ($200) for each affected employee for the second or subsequent violation.
(d)CA Labor Code § 2678(d) If a person is subject to civil penalties for a violation described in subdivision (a), but does not employ one or more workers, the civil penalty shall be five hundred dollars ($500), and the person shall not be guilty of a misdemeanor as specified in Section 2676.

Section § 2679

Explanation

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.

(a)CA Labor Code § 2679(a) The commissioner, in addition to any civil penalty imposed pursuant to Section 2679, may require that as a condition of continued registration, such employer deposit with him or her within 10 days a bond to ensure payment of wages and benefits in such sum and form as the commissioner may deem sufficient and adequate in the circumstances but not to exceed ten thousand dollars ($10,000). The bond shall be payable to the commissioner and shall provide that the employer shall pay his or her employees in accordance with the provisions of Section 2675. In lieu of the deposit of a bond, the commissioner, in his or her discretion, may accept other evidence of financial security sufficient to guarantee payment of wages to affected employees.
(b)CA Labor Code § 2679(b) The commissioner, in addition to any civil penalty imposed, shall require a bond as set forth in subdivision (a) upon any second or subsequent violation within any two-year period. The commissioner may revoke the registration of any person for any period ranging from 30 days to one year upon a third or subsequent violation within any two-year period and may confiscate any garment or wearing apparel, assembled or partially assembled, if the violation relates to minimum wages, child labor, or maximum hours of labor. If the commissioner does exercise the authority to confiscate upon such a third or subsequent violation, the commissioner shall notify persons for whom assembly is performed and shall provide for the return of such garment owner’s confiscated garments or wearing apparel upon such assumption and satisfaction of liability for the violation.

Section § 2680

Explanation

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.

(a)CA Labor Code § 2680(a) Any garment or wearing apparel, assembled or partially assembled by or on behalf of any person who has not complied with the registration requirements of this part, may be confiscated by the Division of Labor Standards Enforcement. Garments and wearing apparel confiscated pursuant to this section shall be placed in the custody of the division, which shall be charged with the responsibility of destroying or disposing of them pursuant to regulations adopted under Section 2672, provided that the goods shall not enter the mainstream of commerce and shall not be offered for sale. The division shall, by registered mail and telephone, give notice of the removal and the location where the confiscated goods are held in custody to the known manufacturer and contractor.
(b)CA Labor Code § 2680(b) If the person from whom garments or wearing apparel are confiscated pursuant to subdivision (a) was providing the confiscated garments or wearing apparel as a contractor and has previously, within the immediately preceding five-year period, had garments or wearing apparel confiscated pursuant to subdivision (a), the Labor Commissioner may, in addition to the remedies set forth in subdivision (a), confiscate the means of production, including all manufacturing equipment and the property where the current unregistered garment manufacturing operations have taken place. This subdivision does not apply where nonregistration of the contractor was due to delayed renewal of registration.
(c)CA Labor Code § 2680(c) The proceeds from the sale of any equipment or property under subdivision (b) shall be deposited into a single account in the General Fund, to be known as the Back Wages and Taxes Account. At the Labor Commissioner’s discretion, and upon appropriation by the Legislature, funds from that account may be disbursed to pay back wages owed to garment workers, including, but not limited to, workers of the unregistered contractor whose violation caused the confiscation, and for the payment of taxes.

Section § 2680.5

Explanation

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.

The commissioner shall have the authority to investigate and mediate pricing and quality disputes arising out of written contracts between manufacturers and contractors in the garment industry.

Section § 2681

Explanation

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.

(a)CA Labor Code § 2681(a) Any person against whom a penalty is assessed or whose goods are confiscated shall, in lieu of contesting the penalty or the confiscation pursuant to this section, transmit to the office of the Labor Commissioner designated on the citation the amount specified for the violation within 15 business days after the issuance of the citation.
(b)CA Labor Code § 2681(b) If a person desires to contest an assessment of a penalty or the confiscation of goods, he or she shall, within 15 business days after service of the citation or confiscation of the goods, or both, petition, in writing, the office of the Labor Commissioner which appears on the citation or on the receipt for the confiscated goods of his or her request for an informal hearing. The Labor Commissioner or his or her deputy or agent shall, within 30 days, hold a hearing at the conclusion of which the penalty set forth in the citation or the issue of the confiscation of the goods, or both, shall be affirmed, modified, or dismissed. If confiscated goods are involved, the hearing shall be held within 10 days. The decision of the Labor Commissioner shall consist of a notice of findings, findings, and order which shall be served on all parties to the hearing within 15 days after the hearing by regular first-class mail at the last known address of the party on file with the Labor Commissioner. Service shall be completed pursuant to Section 1013 of the Code of Civil Procedure. Any amount found due by the Labor Commissioner as a result of a hearing shall become due and payable 45 days after notice of the findings and written findings and order have been mailed to the party assessed. A writ of mandate may be taken from this finding to the appropriate superior court, as long as the party agrees to pay any judgment and costs ultimately rendered by the court against the party for the assessment. The writ must be taken within 45 days of service of the notice of findings, findings, and order thereon.
(c)CA Labor Code § 2681(c) When no petition objecting to a citation or the proposed assessment of a civil penalty or confiscation of goods, or both, is filed, a certified copy of the citation or proposed civil penalty may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has property or in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the citation or proposed assessment of a civil penalty.
(d)CA Labor Code § 2681(d) When findings and the order thereon are made affirming or modifying a citation or proposed assessment of a civil penalty after hearing, a certified copy of these findings and the order entered thereon may be entered by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has property or in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the certified order.
(e)CA Labor Code § 2681(e) A judgment entered pursuant to this section shall bear the same rate of interest and shall have the same effect as other judgments and be given the same preference allowed by law on other judgments rendered for claims for taxes. The clerk shall make no charge for the service provided by this section to be performed by him or her.

Section § 2682

Explanation

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.

Moneys recovered under this chapter shall be applied first to payment of wages due affected employees. If insufficient funds are withheld or recovered, the money shall be prorated among all such workers. Any remainder shall be paid to the General Fund of the state.

Section § 2684

Explanation

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.

(a)CA Labor Code § 2684(a) The Legislature finds and declares that persons who are primarily engaged in sewing or assembly of garments for other persons engaged in garment manufacturing frequently close down their sewing shops to avoid paying their employees’ wages and subsequently reopen under the conditions described in subdivision (b), and are more likely to do so than are other types of persons engaged in garment manufacturing.
(b)CA Labor Code § 2684(b) A successor to any employer that is primarily engaged in sewing or assembly of garments for other persons engaged in the business of garment manufacturing, as defined by subdivision (b) of Section 2671, that owes wages to the predecessor’s former employee or employees is liable for those wages if the successor meets any of the following criteria:
(1)CA Labor Code § 2684(b)(1) Uses substantially the same facilities or work force to produce substantially the same products for substantially the same type of customers as the predecessor employer.
(2)CA Labor Code § 2684(b)(2) Shares in the ownership, management, control of labor relations, or interrelations of business operations with the predecessor employer.
(3)CA Labor Code § 2684(b)(3) Has in its employ in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected employees of the predecessor employer.
(4)CA Labor Code § 2684(b)(4) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer or of any person who had a financial interest in the predecessor employer.
This section does not impose liability upon a successor for the guarantee of unpaid minimum wages and overtime compensation set forth in subdivision (a) or (b) of Section 2673.1.