Senate Bill (SB) 62, also now known as the Garment Worker Protection Act, alters the way employees in the garment manufacturing industry are paid. Specifically, it prohibits companies from paying its garment manufacturing workers by the piece or unit or by piece rate, except when such a payment arrangement is approved as a result of a collective bargaining agreement. Instead, garment manufacturers must be paid no less than the applicable minimum wage. The law also broadens the definition of who is part of the clothing making industry for the purposes of enforcing wages. The definition now includes not only direct employers, but brand guarantors (those who contract with other firms to have garments made).
Garment makers and contractors who breach their duties as employers under the law may be subject to statutory, per-employee damages for every pay period. Continue Reading ›