State Codes and Statutes

Statutes > California > Lab > 2670-2674.2

LABOR CODE
SECTION 2670-2674.2



2670.  It is the intent of the Legislature, in enacting this part,
to establish a system of registration, penalties, confiscation,
bonding requirements, and misdemeanors for the imposition of prompt
and effective criminal and civil sanctions against violations of, and
especially patterns and practices of violations of, any of the laws
as set forth herein and regulations of this state applicable to the
employment of workers in the garment industry. The civil penalties
provided for in this part are in addition to any other penalty
provided by law. This part shall be deemed an exercise of the police
power of the state for the protection of the public welfare,
prosperity, health, safety, and peace of the people of the State of
California.



2671.  As used in this part:
   (a) "Person" means any individual, partnership, corporation,
limited liability company, or association, and includes, but is not
limited to, employers, manufacturers, jobbers, wholesalers,
contractors, subcontractors, and any other person or entity engaged
in the business of garment manufacturing.
   "Person" does not include any person who manufactures garments by
himself or herself, without the assistance of a contractor, employee,
or others; any person who engages solely in that part of the
business engaged solely in cleaning, alteration, or tailoring; any
person who engages in the activities herein regulated as an employee
with wages as his or her sole compensation; or any person as provided
by regulation.
   (b) "Garment manufacturing" means sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories designed
or intended to be worn by any individual, including, but not limited
to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and
belts, for sale or resale by any person or any persons contracting to
have those operations performed and other operations and practices
in the apparel industry as may be identified in regulations of the
Department of Industrial Relations consistent with the purposes of
this part. The Department of Industrial Relations shall adopt, and
may from time to time amend, regulations to clarify and refine this
definition to be consistent with current and future industry
practices, but the regulations shall not limit the scope of garment
manufacturing, as defined in this subdivision.
   (c) "Commissioner" means the Labor Commissioner.
   (d) "Contractor" means any person who, with the assistance of
employees or others, is primarily engaged in sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories
designed or intended to be worn by any individual, including, but not
limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs,
and belts, for another person. "Contractor" includes a subcontractor
that is primarily engaged in those operations.




2672.  The commissioner shall promulgate all regulations and rules
necessary to carry out the provisions of this part. The commissioner,
upon good cause, may impose, in his or her discretion, the terms of
penalties, the revocation of registrations, and the confiscation or
disposal of goods in accordance with such rules and regulations.




2673.  Every employer engaged in the business of garment
manufacturing shall keep accurate records for three years which show
all of the following:
   (a) The names and addresses of all garment workers directly
employed by such person.
   (b) The hours worked daily by employees, including the times the
employees begin and end each work period.
   (c) The daily production sheets, including piece rates.
   (d) The wage and wage rates paid each payroll period.
   (e) The contract worksheets indicating the price per unit agreed
to between the contractor and manufacturer.
   (f) The ages of all minor employees.
   (g) Any other conditions of employment.



2673.1.  (a) To ensure that employees are paid for all hours worked,
a person engaged in garment manufacturing, as defined in Section
2671, who contracts with another person for the performance of
garment manufacturing operations shall guarantee payment of the
applicable minimum wage and overtime compensation, as required by
law, that are due from that other person to its employees that
perform those operations.
   (b) Where the work of two or more persons is being performed at
the same worksite during the same payroll period, the liability of
each person under this guarantee shall be limited to his or her
proportionate share, as determined by the Labor Commissioner pursuant
to paragraph (3) or (4) of subdivision (d).
   (c) Employees may enforce this guarantee solely by filing a claim
with the Labor Commissioner against the contractor and the guarantor
or guarantors, if known, to recover unpaid wages. Guarantors whose
identity or existence is unknown at the time the claim is filed may
be added to the claim pursuant to paragraph (2) of subdivision (d).
   (d) Claims filed with the Labor Commissioner for payment of wages
pursuant to subdivision (c) shall be subject to the following
procedure:
   (1) Within 10 business days of receiving a claim pursuant
subdivision (c), the Labor Commissioner shall give written notice to
the employee, the contractor, and persons that may be guarantors of
the nature of the claim and the date of the meet-and-confer
conference on the claim. Within 10 business days of receiving the
claim, the Labor Commissioner shall issue a subpoena duces tecum
requiring the contractor to submit to the Labor Commissioner those
books and records as may be necessary to investigate the claim and
determine the identity of any potential guarantors for the payment of
the wage claim, including, but not limited to, invoices for work
performed for any and all persons during the period included in the
claim. Compliance with such a request for books and records, within
10 days of the mailing of the notice, shall be a condition of
continued registration pursuant to Section 2675. At the request of
any party, the Labor Commissioner shall provide to that party copies
of all books and records received by the Labor Commissioner in
conducting its investigation.
   (2) Within 30 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall send a notice of the claim and of
the meet-and-confer conference to any other persons who may be
guarantors with respect to the claim.
   (3) Within 60 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall hold a meet-and-confer conference
with the employee, the contractor, and all known potential guarantors
to attempt to resolve the claim. Prior to the meet-and-confer
conference, the Labor Commissioner shall conduct and complete an
investigation of the claim, shall make a finding and assessment of
the amount of wages owed, and shall conduct an investigation and
determine each guarantor's proportionate share of liability. The
investigation shall include, but not be limited to, interviewing the
employee and his or her witnesses and making a finding and assessment
of back wages due, if any, to the employee. An employee's claim of
hours worked and back wages due shall be presumed valid and shall be
the Labor Commissioner's assessment, unless the contractor provides
specific, compelling, and reliable written evidence to the contrary
and is able to produce records pursuant to subdivision (d) of Section
1174 or Section 2673 that are accurate and contemporaneous, itemized
wage deduction statements pursuant to Section 226, bona fide
complete and accurate payroll records, and evidence of the precise
hours worked by the employee for each pay period during the period of
the claim. If the Labor Commissioner finds falsification by the
contractor of payroll records submitted for any pay period of the
claim, any other payroll records submitted by the contractor shall be
presumed false and disregarded.
   The Labor Commissioner shall present his or her findings and
assessment of the amount of wages owed and each guarantor's
proportionate share thereof to the parties at the meet-and-confer
conference and shall make a demand for payment of the amount of the
assessment. If no resolution is reached, the Labor Commissioner
shall, at the meet-and-confer conference, set the matter for hearing
pursuant to paragraph (4). The Labor Commissioner's assessment,
pursuant to this paragraph, of the amount of back wages due is solely
for purposes of the meet-and-confer conference and shall not be
admissible or be given any weight in the hearing conducted pursuant
to paragraph (4). If the Labor Commissioner has not identified any
potential guarantors after investigation and the matter is not
resolved at the conclusion of the meet-and-confer conference, the
Commissioner shall proceed against the contractor pursuant to Section
98.
   (4) The hearing shall commence within 30 days of, and shall be
completed within 45 days of, the date of the meet-and-confer
conference. The hearing may be bifurcated, addressing first the
question of liability of the contractor and the guarantor or
guarantors, and immediately thereafter the proportionate
responsibility of the guarantors. The Labor Commissioner shall
present his or her proposed findings of the guarantor's proportionate
share at the hearing. Any party may present evidence at the hearing
to support or rebut the proposed findings. Except as provided in this
paragraph, the hearing shall be held in accordance with the
procedure set forth in subdivisions (b) to (h), inclusive, of Section
98. It is the intent of the Legislature that these hearings be
conducted in an informal setting preserving the rights of the
parties.
   (5) Within 15 days of the completion of the hearing, the Labor
Commissioner shall issue an order, decision, or award with respect to
the claim and shall file the order, decision, or award in accordance
with Section 98.1.
   (e) An employee shall be entitled to recover, from the contractor,
liquidated damages in an amount equal to the wages unlawfully
withheld, as set forth in Section 1194.2, and liquidated damages in
an amount equal to unpaid overtime compensation due. A guarantor
under subdivision (a) shall be liable for its proportionate share of
those liquidated damages if the guarantor has acted in bad faith,
including, but not limited to, failure to pay or unreasonably
delaying payment to its contractor, unreasonably reducing payment to
its contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the minimum wage and overtime pay owed by the
contractor, asserting frivolous defenses, or unreasonably delaying or
impeding the Labor Commissioner's investigation of the claim.
   (f) If either the contractor or guarantor refuses to pay the
assessment, and the employee prevails at the hearing, the party that
refuses to pay shall pay the employee's reasonable attorney's fees
and costs. If the employee rejects the assessment of the Labor
Commissioner and prevails at the hearing, the employer shall pay the
employee's reasonable attorney's fees and costs. The guarantor shall
be jointly and severally liable for the contractor's share of the
attorney's fees and costs awarded to an employee only if the Labor
Commissioner determines that the guarantor acted in bad faith,
including, but not limited to, failure to pay, unreasonably delaying
payment to the contractor, unreasonably reducing payment to the
contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the applicable minimum wage and overtime pay
owed by the contractor, asserting frivolous defenses, or unreasonably
delaying or impeding the Labor Commissioner's investigation of the
claim.
   (g) Any party shall have the right to judicial review of the
order, decision, or award of the Labor Commissioner made pursuant to
paragraph (5) of subdivision (d) as provided in Section 98.2. As a
condition precedent to filing an appeal, the contractor or the
guarantor, whichever appeals, shall post a bond with the Commissioner
in an amount equal to one and one-half times the amount of the
award. No bond shall be required of an employee filing an appeal
pursuant to Section 98.2. At the employee's request, the Labor
Commissioner shall represent the employee in the judicial review as
provided in Section 98.4.
   (h) If the contractor or guarantor appeals the order, decision, or
award of the Labor Commissioner and the employee prevails on appeal,
the court shall order the contractor or guarantor, as the case may
be, to pay the reasonable attorney's fees and costs of the employee
incurred in pursuing his or her claim. If the employee appeals the
order, decision, or award of the Labor Commissioner and the
contractor or guarantor prevails on appeal, the court may order the
employee to pay the reasonable attorney's fees and costs of the
contractor employer or guarantor only if the court determines that
the employee acted in bad faith in bringing the claim.
   (i) The rights and remedies provided by this section do not
preclude an employee from pursuing any other rights and remedies
under any other provision of state or federal law. If a finding and
assessment is not issued as specified and within the time limits in
paragraph (3) of subdivision (d), the employee may bring a civil
action for the recovery of unpaid wages pursuant to any other rights
and remedies under any other provision of the laws of this state
unless, prior to the employee bringing the civil action, the
guarantor files a petition for writ of mandate within 10 days of the
date the assessment should have been issued. If findings and
assessments are not made, or a hearing is not commenced or an order,
decision, or award is not issued within the time limits specified in
paragraphs (4) and (5) of subdivision (d), any party may file a
petition for writ of mandate to compel the Labor Commissioner to
issue findings and assessments, commence the hearing, or issue the
order, decision, or award. All time requirements specified in this
section shall be mandatory and shall be enforceable by a writ of
mandate.
   (j) The Labor Commissioner may enforce the wage guarantee
described in this section in the same manner as a proceeding against
the contractor. The Labor Commissioner may, with or without a
complaint being filed by an employee, conduct an investigation as to
whether all the employees of persons engaged in garment manufacturing
are being paid minimum wage or overtime compensation and, with or
without the consent of the employees affected, commence a civil
action to enforce the wage guarantee. Prior to commencing such a
civil action and pursuant to rules of practice and procedure adopted
by the Labor Commissioner, the commissioner shall provide notice of
the investigation to each guarantor and employee, issue findings and
an assessment of the amount of wages due, hold a meet-and-confer
conference with the guarantors and employees to attempt to resolve
the matter, and provide for a hearing.
   (k) Except as expressly provided in this section, this section
shall not be deemed to create any new right to bring a civil action
of any kind for unpaid minimum wages, overtime pay, penalties, wage
assessments, attorney's fees, or costs against a registered garment
manufacturer based on its use of any contractor that is also a
registered garment manufacturer.
   (l) The payment of the wage guarantee provided in this section
shall not be used as a basis for finding that the registered garment
manufacturer making the payment is a joint employer, coemployer, or
single employer of any employees of a contractor that is also a
registered garment manufacturer.
   (m) The Labor Commissioner may, in his or her discretion, revoke
the registration under this part of any registrant that fails to pay,
on a timely basis, any wages awarded pursuant to this section, after
the award has become final.



2674.  The Division of Labor Standards Enforcement shall enforce
Section 2673 and Chapter 2 (commencing with Section 2675).



2674.1.  The commissioner shall appoint an advisory committee on
garment manufacturing to advise him or her of common industry
problems and to effect liaison between his or her office and various
segments of the industry. The committee shall consist of a cross
section of the industry and shall include representatives of unions,
employees, contractor associations, jobbers, and manufacturers.



2674.2.  In the annual budget submitted to the Legislature pursuant
to Section 12 of Article IV of the California Constitution, the
Governor shall include a detailed statement of the cost of regulation
and estimated revenues pursuant to the provisions of this part. The
Legislature intends that the fees established and other revenue
received pursuant to this part shall provide sufficient funds to meet
all state costs incurred pursuant to this part.


State Codes and Statutes

Statutes > California > Lab > 2670-2674.2

LABOR CODE
SECTION 2670-2674.2



2670.  It is the intent of the Legislature, in enacting this part,
to establish a system of registration, penalties, confiscation,
bonding requirements, and misdemeanors for the imposition of prompt
and effective criminal and civil sanctions against violations of, and
especially patterns and practices of violations of, any of the laws
as set forth herein and regulations of this state applicable to the
employment of workers in the garment industry. The civil penalties
provided for in this part are in addition to any other penalty
provided by law. This part shall be deemed an exercise of the police
power of the state for the protection of the public welfare,
prosperity, health, safety, and peace of the people of the State of
California.



2671.  As used in this part:
   (a) "Person" means any individual, partnership, corporation,
limited liability company, or association, and includes, but is not
limited to, employers, manufacturers, jobbers, wholesalers,
contractors, subcontractors, and any other person or entity engaged
in the business of garment manufacturing.
   "Person" does not include any person who manufactures garments by
himself or herself, without the assistance of a contractor, employee,
or others; any person who engages solely in that part of the
business engaged solely in cleaning, alteration, or tailoring; any
person who engages in the activities herein regulated as an employee
with wages as his or her sole compensation; or any person as provided
by regulation.
   (b) "Garment manufacturing" means sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories designed
or intended to be worn by any individual, including, but not limited
to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and
belts, for sale or resale by any person or any persons contracting to
have those operations performed and other operations and practices
in the apparel industry as may be identified in regulations of the
Department of Industrial Relations consistent with the purposes of
this part. The Department of Industrial Relations shall adopt, and
may from time to time amend, regulations to clarify and refine this
definition to be consistent with current and future industry
practices, but the regulations shall not limit the scope of garment
manufacturing, as defined in this subdivision.
   (c) "Commissioner" means the Labor Commissioner.
   (d) "Contractor" means any person who, with the assistance of
employees or others, is primarily engaged in sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories
designed or intended to be worn by any individual, including, but not
limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs,
and belts, for another person. "Contractor" includes a subcontractor
that is primarily engaged in those operations.




2672.  The commissioner shall promulgate all regulations and rules
necessary to carry out the provisions of this part. The commissioner,
upon good cause, may impose, in his or her discretion, the terms of
penalties, the revocation of registrations, and the confiscation or
disposal of goods in accordance with such rules and regulations.




2673.  Every employer engaged in the business of garment
manufacturing shall keep accurate records for three years which show
all of the following:
   (a) The names and addresses of all garment workers directly
employed by such person.
   (b) The hours worked daily by employees, including the times the
employees begin and end each work period.
   (c) The daily production sheets, including piece rates.
   (d) The wage and wage rates paid each payroll period.
   (e) The contract worksheets indicating the price per unit agreed
to between the contractor and manufacturer.
   (f) The ages of all minor employees.
   (g) Any other conditions of employment.



2673.1.  (a) To ensure that employees are paid for all hours worked,
a person engaged in garment manufacturing, as defined in Section
2671, who contracts with another person for the performance of
garment manufacturing operations shall guarantee payment of the
applicable minimum wage and overtime compensation, as required by
law, that are due from that other person to its employees that
perform those operations.
   (b) Where the work of two or more persons is being performed at
the same worksite during the same payroll period, the liability of
each person under this guarantee shall be limited to his or her
proportionate share, as determined by the Labor Commissioner pursuant
to paragraph (3) or (4) of subdivision (d).
   (c) Employees may enforce this guarantee solely by filing a claim
with the Labor Commissioner against the contractor and the guarantor
or guarantors, if known, to recover unpaid wages. Guarantors whose
identity or existence is unknown at the time the claim is filed may
be added to the claim pursuant to paragraph (2) of subdivision (d).
   (d) Claims filed with the Labor Commissioner for payment of wages
pursuant to subdivision (c) shall be subject to the following
procedure:
   (1) Within 10 business days of receiving a claim pursuant
subdivision (c), the Labor Commissioner shall give written notice to
the employee, the contractor, and persons that may be guarantors of
the nature of the claim and the date of the meet-and-confer
conference on the claim. Within 10 business days of receiving the
claim, the Labor Commissioner shall issue a subpoena duces tecum
requiring the contractor to submit to the Labor Commissioner those
books and records as may be necessary to investigate the claim and
determine the identity of any potential guarantors for the payment of
the wage claim, including, but not limited to, invoices for work
performed for any and all persons during the period included in the
claim. Compliance with such a request for books and records, within
10 days of the mailing of the notice, shall be a condition of
continued registration pursuant to Section 2675. At the request of
any party, the Labor Commissioner shall provide to that party copies
of all books and records received by the Labor Commissioner in
conducting its investigation.
   (2) Within 30 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall send a notice of the claim and of
the meet-and-confer conference to any other persons who may be
guarantors with respect to the claim.
   (3) Within 60 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall hold a meet-and-confer conference
with the employee, the contractor, and all known potential guarantors
to attempt to resolve the claim. Prior to the meet-and-confer
conference, the Labor Commissioner shall conduct and complete an
investigation of the claim, shall make a finding and assessment of
the amount of wages owed, and shall conduct an investigation and
determine each guarantor's proportionate share of liability. The
investigation shall include, but not be limited to, interviewing the
employee and his or her witnesses and making a finding and assessment
of back wages due, if any, to the employee. An employee's claim of
hours worked and back wages due shall be presumed valid and shall be
the Labor Commissioner's assessment, unless the contractor provides
specific, compelling, and reliable written evidence to the contrary
and is able to produce records pursuant to subdivision (d) of Section
1174 or Section 2673 that are accurate and contemporaneous, itemized
wage deduction statements pursuant to Section 226, bona fide
complete and accurate payroll records, and evidence of the precise
hours worked by the employee for each pay period during the period of
the claim. If the Labor Commissioner finds falsification by the
contractor of payroll records submitted for any pay period of the
claim, any other payroll records submitted by the contractor shall be
presumed false and disregarded.
   The Labor Commissioner shall present his or her findings and
assessment of the amount of wages owed and each guarantor's
proportionate share thereof to the parties at the meet-and-confer
conference and shall make a demand for payment of the amount of the
assessment. If no resolution is reached, the Labor Commissioner
shall, at the meet-and-confer conference, set the matter for hearing
pursuant to paragraph (4). The Labor Commissioner's assessment,
pursuant to this paragraph, of the amount of back wages due is solely
for purposes of the meet-and-confer conference and shall not be
admissible or be given any weight in the hearing conducted pursuant
to paragraph (4). If the Labor Commissioner has not identified any
potential guarantors after investigation and the matter is not
resolved at the conclusion of the meet-and-confer conference, the
Commissioner shall proceed against the contractor pursuant to Section
98.
   (4) The hearing shall commence within 30 days of, and shall be
completed within 45 days of, the date of the meet-and-confer
conference. The hearing may be bifurcated, addressing first the
question of liability of the contractor and the guarantor or
guarantors, and immediately thereafter the proportionate
responsibility of the guarantors. The Labor Commissioner shall
present his or her proposed findings of the guarantor's proportionate
share at the hearing. Any party may present evidence at the hearing
to support or rebut the proposed findings. Except as provided in this
paragraph, the hearing shall be held in accordance with the
procedure set forth in subdivisions (b) to (h), inclusive, of Section
98. It is the intent of the Legislature that these hearings be
conducted in an informal setting preserving the rights of the
parties.
   (5) Within 15 days of the completion of the hearing, the Labor
Commissioner shall issue an order, decision, or award with respect to
the claim and shall file the order, decision, or award in accordance
with Section 98.1.
   (e) An employee shall be entitled to recover, from the contractor,
liquidated damages in an amount equal to the wages unlawfully
withheld, as set forth in Section 1194.2, and liquidated damages in
an amount equal to unpaid overtime compensation due. A guarantor
under subdivision (a) shall be liable for its proportionate share of
those liquidated damages if the guarantor has acted in bad faith,
including, but not limited to, failure to pay or unreasonably
delaying payment to its contractor, unreasonably reducing payment to
its contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the minimum wage and overtime pay owed by the
contractor, asserting frivolous defenses, or unreasonably delaying or
impeding the Labor Commissioner's investigation of the claim.
   (f) If either the contractor or guarantor refuses to pay the
assessment, and the employee prevails at the hearing, the party that
refuses to pay shall pay the employee's reasonable attorney's fees
and costs. If the employee rejects the assessment of the Labor
Commissioner and prevails at the hearing, the employer shall pay the
employee's reasonable attorney's fees and costs. The guarantor shall
be jointly and severally liable for the contractor's share of the
attorney's fees and costs awarded to an employee only if the Labor
Commissioner determines that the guarantor acted in bad faith,
including, but not limited to, failure to pay, unreasonably delaying
payment to the contractor, unreasonably reducing payment to the
contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the applicable minimum wage and overtime pay
owed by the contractor, asserting frivolous defenses, or unreasonably
delaying or impeding the Labor Commissioner's investigation of the
claim.
   (g) Any party shall have the right to judicial review of the
order, decision, or award of the Labor Commissioner made pursuant to
paragraph (5) of subdivision (d) as provided in Section 98.2. As a
condition precedent to filing an appeal, the contractor or the
guarantor, whichever appeals, shall post a bond with the Commissioner
in an amount equal to one and one-half times the amount of the
award. No bond shall be required of an employee filing an appeal
pursuant to Section 98.2. At the employee's request, the Labor
Commissioner shall represent the employee in the judicial review as
provided in Section 98.4.
   (h) If the contractor or guarantor appeals the order, decision, or
award of the Labor Commissioner and the employee prevails on appeal,
the court shall order the contractor or guarantor, as the case may
be, to pay the reasonable attorney's fees and costs of the employee
incurred in pursuing his or her claim. If the employee appeals the
order, decision, or award of the Labor Commissioner and the
contractor or guarantor prevails on appeal, the court may order the
employee to pay the reasonable attorney's fees and costs of the
contractor employer or guarantor only if the court determines that
the employee acted in bad faith in bringing the claim.
   (i) The rights and remedies provided by this section do not
preclude an employee from pursuing any other rights and remedies
under any other provision of state or federal law. If a finding and
assessment is not issued as specified and within the time limits in
paragraph (3) of subdivision (d), the employee may bring a civil
action for the recovery of unpaid wages pursuant to any other rights
and remedies under any other provision of the laws of this state
unless, prior to the employee bringing the civil action, the
guarantor files a petition for writ of mandate within 10 days of the
date the assessment should have been issued. If findings and
assessments are not made, or a hearing is not commenced or an order,
decision, or award is not issued within the time limits specified in
paragraphs (4) and (5) of subdivision (d), any party may file a
petition for writ of mandate to compel the Labor Commissioner to
issue findings and assessments, commence the hearing, or issue the
order, decision, or award. All time requirements specified in this
section shall be mandatory and shall be enforceable by a writ of
mandate.
   (j) The Labor Commissioner may enforce the wage guarantee
described in this section in the same manner as a proceeding against
the contractor. The Labor Commissioner may, with or without a
complaint being filed by an employee, conduct an investigation as to
whether all the employees of persons engaged in garment manufacturing
are being paid minimum wage or overtime compensation and, with or
without the consent of the employees affected, commence a civil
action to enforce the wage guarantee. Prior to commencing such a
civil action and pursuant to rules of practice and procedure adopted
by the Labor Commissioner, the commissioner shall provide notice of
the investigation to each guarantor and employee, issue findings and
an assessment of the amount of wages due, hold a meet-and-confer
conference with the guarantors and employees to attempt to resolve
the matter, and provide for a hearing.
   (k) Except as expressly provided in this section, this section
shall not be deemed to create any new right to bring a civil action
of any kind for unpaid minimum wages, overtime pay, penalties, wage
assessments, attorney's fees, or costs against a registered garment
manufacturer based on its use of any contractor that is also a
registered garment manufacturer.
   (l) The payment of the wage guarantee provided in this section
shall not be used as a basis for finding that the registered garment
manufacturer making the payment is a joint employer, coemployer, or
single employer of any employees of a contractor that is also a
registered garment manufacturer.
   (m) The Labor Commissioner may, in his or her discretion, revoke
the registration under this part of any registrant that fails to pay,
on a timely basis, any wages awarded pursuant to this section, after
the award has become final.



2674.  The Division of Labor Standards Enforcement shall enforce
Section 2673 and Chapter 2 (commencing with Section 2675).



2674.1.  The commissioner shall appoint an advisory committee on
garment manufacturing to advise him or her of common industry
problems and to effect liaison between his or her office and various
segments of the industry. The committee shall consist of a cross
section of the industry and shall include representatives of unions,
employees, contractor associations, jobbers, and manufacturers.



2674.2.  In the annual budget submitted to the Legislature pursuant
to Section 12 of Article IV of the California Constitution, the
Governor shall include a detailed statement of the cost of regulation
and estimated revenues pursuant to the provisions of this part. The
Legislature intends that the fees established and other revenue
received pursuant to this part shall provide sufficient funds to meet
all state costs incurred pursuant to this part.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Lab > 2670-2674.2

LABOR CODE
SECTION 2670-2674.2



2670.  It is the intent of the Legislature, in enacting this part,
to establish a system of registration, penalties, confiscation,
bonding requirements, and misdemeanors for the imposition of prompt
and effective criminal and civil sanctions against violations of, and
especially patterns and practices of violations of, any of the laws
as set forth herein and regulations of this state applicable to the
employment of workers in the garment industry. The civil penalties
provided for in this part are in addition to any other penalty
provided by law. This part shall be deemed an exercise of the police
power of the state for the protection of the public welfare,
prosperity, health, safety, and peace of the people of the State of
California.



2671.  As used in this part:
   (a) "Person" means any individual, partnership, corporation,
limited liability company, or association, and includes, but is not
limited to, employers, manufacturers, jobbers, wholesalers,
contractors, subcontractors, and any other person or entity engaged
in the business of garment manufacturing.
   "Person" does not include any person who manufactures garments by
himself or herself, without the assistance of a contractor, employee,
or others; any person who engages solely in that part of the
business engaged solely in cleaning, alteration, or tailoring; any
person who engages in the activities herein regulated as an employee
with wages as his or her sole compensation; or any person as provided
by regulation.
   (b) "Garment manufacturing" means sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories designed
or intended to be worn by any individual, including, but not limited
to, clothing, hats, gloves, handbags, hosiery, ties, scarfs, and
belts, for sale or resale by any person or any persons contracting to
have those operations performed and other operations and practices
in the apparel industry as may be identified in regulations of the
Department of Industrial Relations consistent with the purposes of
this part. The Department of Industrial Relations shall adopt, and
may from time to time amend, regulations to clarify and refine this
definition to be consistent with current and future industry
practices, but the regulations shall not limit the scope of garment
manufacturing, as defined in this subdivision.
   (c) "Commissioner" means the Labor Commissioner.
   (d) "Contractor" means any person who, with the assistance of
employees or others, is primarily engaged in sewing, cutting, making,
processing, repairing, finishing, assembling, or otherwise preparing
any garment or any article of wearing apparel or accessories
designed or intended to be worn by any individual, including, but not
limited to, clothing, hats, gloves, handbags, hosiery, ties, scarfs,
and belts, for another person. "Contractor" includes a subcontractor
that is primarily engaged in those operations.




2672.  The commissioner shall promulgate all regulations and rules
necessary to carry out the provisions of this part. The commissioner,
upon good cause, may impose, in his or her discretion, the terms of
penalties, the revocation of registrations, and the confiscation or
disposal of goods in accordance with such rules and regulations.




2673.  Every employer engaged in the business of garment
manufacturing shall keep accurate records for three years which show
all of the following:
   (a) The names and addresses of all garment workers directly
employed by such person.
   (b) The hours worked daily by employees, including the times the
employees begin and end each work period.
   (c) The daily production sheets, including piece rates.
   (d) The wage and wage rates paid each payroll period.
   (e) The contract worksheets indicating the price per unit agreed
to between the contractor and manufacturer.
   (f) The ages of all minor employees.
   (g) Any other conditions of employment.



2673.1.  (a) To ensure that employees are paid for all hours worked,
a person engaged in garment manufacturing, as defined in Section
2671, who contracts with another person for the performance of
garment manufacturing operations shall guarantee payment of the
applicable minimum wage and overtime compensation, as required by
law, that are due from that other person to its employees that
perform those operations.
   (b) Where the work of two or more persons is being performed at
the same worksite during the same payroll period, the liability of
each person under this guarantee shall be limited to his or her
proportionate share, as determined by the Labor Commissioner pursuant
to paragraph (3) or (4) of subdivision (d).
   (c) Employees may enforce this guarantee solely by filing a claim
with the Labor Commissioner against the contractor and the guarantor
or guarantors, if known, to recover unpaid wages. Guarantors whose
identity or existence is unknown at the time the claim is filed may
be added to the claim pursuant to paragraph (2) of subdivision (d).
   (d) Claims filed with the Labor Commissioner for payment of wages
pursuant to subdivision (c) shall be subject to the following
procedure:
   (1) Within 10 business days of receiving a claim pursuant
subdivision (c), the Labor Commissioner shall give written notice to
the employee, the contractor, and persons that may be guarantors of
the nature of the claim and the date of the meet-and-confer
conference on the claim. Within 10 business days of receiving the
claim, the Labor Commissioner shall issue a subpoena duces tecum
requiring the contractor to submit to the Labor Commissioner those
books and records as may be necessary to investigate the claim and
determine the identity of any potential guarantors for the payment of
the wage claim, including, but not limited to, invoices for work
performed for any and all persons during the period included in the
claim. Compliance with such a request for books and records, within
10 days of the mailing of the notice, shall be a condition of
continued registration pursuant to Section 2675. At the request of
any party, the Labor Commissioner shall provide to that party copies
of all books and records received by the Labor Commissioner in
conducting its investigation.
   (2) Within 30 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall send a notice of the claim and of
the meet-and-confer conference to any other persons who may be
guarantors with respect to the claim.
   (3) Within 60 days of receiving a claim pursuant to subdivision
(c), the Labor Commissioner shall hold a meet-and-confer conference
with the employee, the contractor, and all known potential guarantors
to attempt to resolve the claim. Prior to the meet-and-confer
conference, the Labor Commissioner shall conduct and complete an
investigation of the claim, shall make a finding and assessment of
the amount of wages owed, and shall conduct an investigation and
determine each guarantor's proportionate share of liability. The
investigation shall include, but not be limited to, interviewing the
employee and his or her witnesses and making a finding and assessment
of back wages due, if any, to the employee. An employee's claim of
hours worked and back wages due shall be presumed valid and shall be
the Labor Commissioner's assessment, unless the contractor provides
specific, compelling, and reliable written evidence to the contrary
and is able to produce records pursuant to subdivision (d) of Section
1174 or Section 2673 that are accurate and contemporaneous, itemized
wage deduction statements pursuant to Section 226, bona fide
complete and accurate payroll records, and evidence of the precise
hours worked by the employee for each pay period during the period of
the claim. If the Labor Commissioner finds falsification by the
contractor of payroll records submitted for any pay period of the
claim, any other payroll records submitted by the contractor shall be
presumed false and disregarded.
   The Labor Commissioner shall present his or her findings and
assessment of the amount of wages owed and each guarantor's
proportionate share thereof to the parties at the meet-and-confer
conference and shall make a demand for payment of the amount of the
assessment. If no resolution is reached, the Labor Commissioner
shall, at the meet-and-confer conference, set the matter for hearing
pursuant to paragraph (4). The Labor Commissioner's assessment,
pursuant to this paragraph, of the amount of back wages due is solely
for purposes of the meet-and-confer conference and shall not be
admissible or be given any weight in the hearing conducted pursuant
to paragraph (4). If the Labor Commissioner has not identified any
potential guarantors after investigation and the matter is not
resolved at the conclusion of the meet-and-confer conference, the
Commissioner shall proceed against the contractor pursuant to Section
98.
   (4) The hearing shall commence within 30 days of, and shall be
completed within 45 days of, the date of the meet-and-confer
conference. The hearing may be bifurcated, addressing first the
question of liability of the contractor and the guarantor or
guarantors, and immediately thereafter the proportionate
responsibility of the guarantors. The Labor Commissioner shall
present his or her proposed findings of the guarantor's proportionate
share at the hearing. Any party may present evidence at the hearing
to support or rebut the proposed findings. Except as provided in this
paragraph, the hearing shall be held in accordance with the
procedure set forth in subdivisions (b) to (h), inclusive, of Section
98. It is the intent of the Legislature that these hearings be
conducted in an informal setting preserving the rights of the
parties.
   (5) Within 15 days of the completion of the hearing, the Labor
Commissioner shall issue an order, decision, or award with respect to
the claim and shall file the order, decision, or award in accordance
with Section 98.1.
   (e) An employee shall be entitled to recover, from the contractor,
liquidated damages in an amount equal to the wages unlawfully
withheld, as set forth in Section 1194.2, and liquidated damages in
an amount equal to unpaid overtime compensation due. A guarantor
under subdivision (a) shall be liable for its proportionate share of
those liquidated damages if the guarantor has acted in bad faith,
including, but not limited to, failure to pay or unreasonably
delaying payment to its contractor, unreasonably reducing payment to
its contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the minimum wage and overtime pay owed by the
contractor, asserting frivolous defenses, or unreasonably delaying or
impeding the Labor Commissioner's investigation of the claim.
   (f) If either the contractor or guarantor refuses to pay the
assessment, and the employee prevails at the hearing, the party that
refuses to pay shall pay the employee's reasonable attorney's fees
and costs. If the employee rejects the assessment of the Labor
Commissioner and prevails at the hearing, the employer shall pay the
employee's reasonable attorney's fees and costs. The guarantor shall
be jointly and severally liable for the contractor's share of the
attorney's fees and costs awarded to an employee only if the Labor
Commissioner determines that the guarantor acted in bad faith,
including, but not limited to, failure to pay, unreasonably delaying
payment to the contractor, unreasonably reducing payment to the
contractor where it is established that the guarantor knew or
reasonably should have known that the price set for the work was
insufficient to cover the applicable minimum wage and overtime pay
owed by the contractor, asserting frivolous defenses, or unreasonably
delaying or impeding the Labor Commissioner's investigation of the
claim.
   (g) Any party shall have the right to judicial review of the
order, decision, or award of the Labor Commissioner made pursuant to
paragraph (5) of subdivision (d) as provided in Section 98.2. As a
condition precedent to filing an appeal, the contractor or the
guarantor, whichever appeals, shall post a bond with the Commissioner
in an amount equal to one and one-half times the amount of the
award. No bond shall be required of an employee filing an appeal
pursuant to Section 98.2. At the employee's request, the Labor
Commissioner shall represent the employee in the judicial review as
provided in Section 98.4.
   (h) If the contractor or guarantor appeals the order, decision, or
award of the Labor Commissioner and the employee prevails on appeal,
the court shall order the contractor or guarantor, as the case may
be, to pay the reasonable attorney's fees and costs of the employee
incurred in pursuing his or her claim. If the employee appeals the
order, decision, or award of the Labor Commissioner and the
contractor or guarantor prevails on appeal, the court may order the
employee to pay the reasonable attorney's fees and costs of the
contractor employer or guarantor only if the court determines that
the employee acted in bad faith in bringing the claim.
   (i) The rights and remedies provided by this section do not
preclude an employee from pursuing any other rights and remedies
under any other provision of state or federal law. If a finding and
assessment is not issued as specified and within the time limits in
paragraph (3) of subdivision (d), the employee may bring a civil
action for the recovery of unpaid wages pursuant to any other rights
and remedies under any other provision of the laws of this state
unless, prior to the employee bringing the civil action, the
guarantor files a petition for writ of mandate within 10 days of the
date the assessment should have been issued. If findings and
assessments are not made, or a hearing is not commenced or an order,
decision, or award is not issued within the time limits specified in
paragraphs (4) and (5) of subdivision (d), any party may file a
petition for writ of mandate to compel the Labor Commissioner to
issue findings and assessments, commence the hearing, or issue the
order, decision, or award. All time requirements specified in this
section shall be mandatory and shall be enforceable by a writ of
mandate.
   (j) The Labor Commissioner may enforce the wage guarantee
described in this section in the same manner as a proceeding against
the contractor. The Labor Commissioner may, with or without a
complaint being filed by an employee, conduct an investigation as to
whether all the employees of persons engaged in garment manufacturing
are being paid minimum wage or overtime compensation and, with or
without the consent of the employees affected, commence a civil
action to enforce the wage guarantee. Prior to commencing such a
civil action and pursuant to rules of practice and procedure adopted
by the Labor Commissioner, the commissioner shall provide notice of
the investigation to each guarantor and employee, issue findings and
an assessment of the amount of wages due, hold a meet-and-confer
conference with the guarantors and employees to attempt to resolve
the matter, and provide for a hearing.
   (k) Except as expressly provided in this section, this section
shall not be deemed to create any new right to bring a civil action
of any kind for unpaid minimum wages, overtime pay, penalties, wage
assessments, attorney's fees, or costs against a registered garment
manufacturer based on its use of any contractor that is also a
registered garment manufacturer.
   (l) The payment of the wage guarantee provided in this section
shall not be used as a basis for finding that the registered garment
manufacturer making the payment is a joint employer, coemployer, or
single employer of any employees of a contractor that is also a
registered garment manufacturer.
   (m) The Labor Commissioner may, in his or her discretion, revoke
the registration under this part of any registrant that fails to pay,
on a timely basis, any wages awarded pursuant to this section, after
the award has become final.



2674.  The Division of Labor Standards Enforcement shall enforce
Section 2673 and Chapter 2 (commencing with Section 2675).



2674.1.  The commissioner shall appoint an advisory committee on
garment manufacturing to advise him or her of common industry
problems and to effect liaison between his or her office and various
segments of the industry. The committee shall consist of a cross
section of the industry and shall include representatives of unions,
employees, contractor associations, jobbers, and manufacturers.



2674.2.  In the annual budget submitted to the Legislature pursuant
to Section 12 of Article IV of the California Constitution, the
Governor shall include a detailed statement of the cost of regulation
and estimated revenues pursuant to the provisions of this part. The
Legislature intends that the fees established and other revenue
received pursuant to this part shall provide sufficient funds to meet
all state costs incurred pursuant to this part.