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) The person has executed a written application therefor in a
form prescribed by the commissioner, subscribed and sworn by the
person, and containing:
(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) 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) The commissioner, after investigation, is satisfied as to the
character, competency, and responsibility of the person.
(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) The person has documented that a current workers' compensation
insurance policy is in effect for the employees of the person
seeking registration.
(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) 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) 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) 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) 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) Section 3203 of Title 8 of the California Code of Regulations
(Injury Prevention Program).
(B) Section 3220 of Title 8 of the California Code of Regulations
(Emergency Action Plan).
(C) Section 3221 of Title 8 of the California Code of Regulations
(Fire Prevention Plan).
(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) Sign a statement which provides that he or she shall do all of
the following:
(A) Comply with those regulations specified in paragraph (2) which
establish minimum standards for securing safety in all places of
employment.
(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) Ensure that all employees are instructed in the use of
portable fire extinguishers.
(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) 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) 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) 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) 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) 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.
2675.2. 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.
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, jobber, contractor, or subcontractor after
exhausting a bond, if any, to ensure the payment of wages and
benefits. Any disbursed funds subsequently recovered by the
commissioner shall be returned to the separate account.
(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.
2676. 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.
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) 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) 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) As used in this section, "showroom" means a room where
merchandise is exposed for sale or where samples are displayed.
2676.7. 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.
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) 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.
2677.5. 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.
2678. (a) A penalty, as provided in subdivision (c), may be imposed
against any person for any of the following:
(1) Failure to comply within 15 days of any judgment due for
violation of any labor laws applicable to garment industry workers.
(2) Failure to comply with the registration requirements of this
part.
(3) Failure to comply with Section 2673 or any section enumerated
in Section 2675.
(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) 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) 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.
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) 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.
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) 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) 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.
2680.5. 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.
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) 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) 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) 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) 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.
2682. 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.
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) 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) 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) Shares in the ownership, management, control of labor
relations, or interrelations of business operations with the
predecessor employer.
(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) 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.
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) The person has executed a written application therefor in a
form prescribed by the commissioner, subscribed and sworn by the
person, and containing:
(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) 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) The commissioner, after investigation, is satisfied as to the
character, competency, and responsibility of the person.
(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) The person has documented that a current workers' compensation
insurance policy is in effect for the employees of the person
seeking registration.
(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) 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) 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) 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) 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) Section 3203 of Title 8 of the California Code of Regulations
(Injury Prevention Program).
(B) Section 3220 of Title 8 of the California Code of Regulations
(Emergency Action Plan).
(C) Section 3221 of Title 8 of the California Code of Regulations
(Fire Prevention Plan).
(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) Sign a statement which provides that he or she shall do all of
the following:
(A) Comply with those regulations specified in paragraph (2) which
establish minimum standards for securing safety in all places of
employment.
(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) Ensure that all employees are instructed in the use of
portable fire extinguishers.
(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) 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) 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) 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) 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) 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.
2675.2. 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.
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, jobber, contractor, or subcontractor after
exhausting a bond, if any, to ensure the payment of wages and
benefits. Any disbursed funds subsequently recovered by the
commissioner shall be returned to the separate account.
(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.
2676. 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.
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) 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) 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) As used in this section, "showroom" means a room where
merchandise is exposed for sale or where samples are displayed.
2676.7. 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.
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) 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.
2677.5. 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.
2678. (a) A penalty, as provided in subdivision (c), may be imposed
against any person for any of the following:
(1) Failure to comply within 15 days of any judgment due for
violation of any labor laws applicable to garment industry workers.
(2) Failure to comply with the registration requirements of this
part.
(3) Failure to comply with Section 2673 or any section enumerated
in Section 2675.
(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) 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) 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.
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) 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.
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) 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) 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.
2680.5. 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.
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) 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) 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) 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) 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.
2682. 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.
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) 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) 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) Shares in the ownership, management, control of labor
relations, or interrelations of business operations with the
predecessor employer.
(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) 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.
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) The person has executed a written application therefor in a
form prescribed by the commissioner, subscribed and sworn by the
person, and containing:
(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) 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) The commissioner, after investigation, is satisfied as to the
character, competency, and responsibility of the person.
(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) The person has documented that a current workers' compensation
insurance policy is in effect for the employees of the person
seeking registration.
(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) 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) 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) 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) 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) Section 3203 of Title 8 of the California Code of Regulations
(Injury Prevention Program).
(B) Section 3220 of Title 8 of the California Code of Regulations
(Emergency Action Plan).
(C) Section 3221 of Title 8 of the California Code of Regulations
(Fire Prevention Plan).
(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) Sign a statement which provides that he or she shall do all of
the following:
(A) Comply with those regulations specified in paragraph (2) which
establish minimum standards for securing safety in all places of
employment.
(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) Ensure that all employees are instructed in the use of
portable fire extinguishers.
(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) 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) 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) 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) 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) 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.
2675.2. 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.
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, jobber, contractor, or subcontractor after
exhausting a bond, if any, to ensure the payment of wages and
benefits. Any disbursed funds subsequently recovered by the
commissioner shall be returned to the separate account.
(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.
2676. 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.
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) 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) 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) As used in this section, "showroom" means a room where
merchandise is exposed for sale or where samples are displayed.
2676.7. 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.
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) 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.
2677.5. 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.
2678. (a) A penalty, as provided in subdivision (c), may be imposed
against any person for any of the following:
(1) Failure to comply within 15 days of any judgment due for
violation of any labor laws applicable to garment industry workers.
(2) Failure to comply with the registration requirements of this
part.
(3) Failure to comply with Section 2673 or any section enumerated
in Section 2675.
(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) 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) 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.
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) 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.
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) 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) 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.
2680.5. 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.
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) 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) 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) 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) 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.
2682. 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.
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) 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) 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) Shares in the ownership, management, control of labor
relations, or interrelations of business operations with the
predecessor employer.
(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) 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.
