In September 2021, California’s Governor signed Senate Bill (SB) 62 which expands the definition of the garment manufacturing industry for purposes of wage claim enforcement to include brand guarantors. A brand guarantor is a person who contracts for the performance of garment manufacturing. Brand guarantors include persons who license a brand or name for garment manufacturing.
SB 62 also prohibits any employee engaged in the performance of garment manufacturing to be paid by the piece or unit, or by piece rate, except for workplaces covered by a collective bargaining agreement. The collective bargaining agreement must expressly include: (1) employees’ wages, hours of work, and working conditions; (2) premium wage rates for all overtime hours worked and a regular hourly rate for those employees of not less than 30 percent more than the state minimum wage; and (3) stewards or monitors, and a process to resolve disputes concerning nonpayment of wages. Employers may still offer incentive-based bonuses to employees.
SB 62 went into effect on January 1, 2022. California’s Labor Commissioner, who is charged with enforcement of the law, has published FAQs regarding SB 62.
The FAQs provide some of the following clarity to the application of SB 62.
Per Labor Code Section 2671(c), garment manufacturing operations refer to the preparation of any garment or any article of apparel or accessories designed or intended to be worn by another...
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