Bill Text: CA SB1399 | 2019-2020 | Regular Session | Amended
Bill Title: Employment: garment manufacturing.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2020-08-25 - Read second time. Ordered to third reading. [SB1399 Detail]
Download: California-2019-SB1399-Amended.html
Amended
IN
Assembly
August 24, 2020 |
Amended
IN
Senate
May 19, 2020 |
Amended
IN
Senate
April 08, 2020 |
Introduced by Senator Durazo (Principal coauthor: Assembly Member Gonzalez) (Coauthors: Assembly Members Carrillo, Jones-Sawyer, and Kalra) |
February 21, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:SEC. 2.
Section 2670 of the Labor Code is amended to read:2670.
(a) It is the intent of the Legislature to restore the purpose of AB 633 (Chapter 554 of the Statutes of 1999) to prevent wage theft against garment workers by clarifying ambiguities in the original language. AB 633 sought to ensure that persons who contracted to have garments manufactured were liable as guarantors for the unpaid wages and overtime of the workers making their garments.SEC. 3.
Section 2671 of the Labor Code is amended to read:2671.
As used in this part:(b)
(c)
(d)
(e)
SEC. 4.
Section 2673 of the Labor Code is amended to read:2673.
(a) Every employer engaged in the business of garment manufacturing shall keep accurate records for(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
SEC. 5.
Section 2673.1 of the Labor Code is amended to read:(a)To ensure that employees are paid for all hours worked, an employee engaged in the performance of garment manufacturing, as defined in subdivision (b) of Section 2671, shall not be paid by the piece or unit, or by piece rate. Nothing in this section shall be deemed to prohibit incentive-based bonuses. This section shall not apply to workplaces where employees are covered by a bona fide collective bargaining agreement, or other enforceable agreement, if the agreement expressly provides for wages, hours of work, working conditions, stewards or monitors, and a process to resolve disputes concerning nonpayment of wages.
(b)
2673.1.
(a) (1) To ensure that employees are paid for all hours worked, a(A)The payment of the unpaid minimum wages, overtime pay, break premiums, liquidated damages, and any other penalties, and attorney’s fees.
(B)Failure to secure valid workers’ compensation coverage as required by Section
3700.
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
SEC. 6.
Section 2673.2 is added to the Labor Code, to read:2673.2.
(a) To ensure that employees are paid for all hours worked, an employee engaged in the performance of garment manufacturing shall not be paid by the piece or unit, or by the piece rate. Nothing in this section shall be deemed to prohibit incentive-based bonuses. This section shall not apply to workplaces where employees are covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, and working conditions of the employees; premium wage rates for all overtime hours worked and a regular hourly rate of pay for those employees of not less than 30 percent more than the state minimum wage; stewards or monitors; and a process to resolve disputes concerning nonpayment of wages.SEC. 6.SEC. 7.
Section 2675.5 of the Labor Code is amended to read: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 a separate account known as the Garment Manufacturers Special Account. Funds from the Garment Manufacturers Special Account shall be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay(2)An employee who has been damaged by an employer’s failure to pay wages, penalties, or other related damages, or a combination thereof, shall, before making a claim for payment from the Garment Manufacturers Special Account, attempt to collect the wages, penalties, or other related damages directly from the employer and the employer’s surety bond, if any.
(d)An employee or their authorized representative seeking recovery of unpaid wages, penalties, or other related damages, or a combination thereof, shall submit a claim for payment from the Garment Manufacturers Special Account in writing to the Labor Commissioner. The claim itself need not be in any particular form, however, it must include all of the following information or be accompanied by the following documents:
(1)Name,
United States Postal Service mailing address, and home telephone number of the employee for whom recovery is sought.
(2)The employee’s social security number or individual
taxpayer identification number.
(3)The name, street address, and telephone number, if known, of the employer that failed to pay the employee their wages, penalties, or other related damages.
(4)The period of time during which the wages were earned, giving both the beginning and ending dates as month, day, and year.
(5)The number of hours worked or other basis for being paid wages.
(6)The promised rate of pay.
(7)The actual rate of pay.
(8)The amount of wages sought.
(9)The amount of penalty sought, if any, and the Labor Code section pursuant to which the penalty may be imposed.
(10)An itemization, description, and the amount of other related damages sought, if any.
(11)The amount of recovery sought less any amount recovered from the employer or the employer’s surety bond, if any.
(12)The new amount of total recovery sought, if different from the amount in paragraph (11).
(13)Proof of damages actually suffered.
(14)A copy of the employee’s written assignment of the claim to the representative, if applicable.
(15)A declaration or affidavit under penalty of perjury containing information regarding attempts made by the employee or their representative to satisfy the claim by demand against the surety bond, if any, required to be held by the manufacturer, contractor, or brand guarantor by Labor Code Section 2675, and the results of the demand. The declaration or affidavit must also disclose the attempts made to collect the recovery sought directly from the employer, and the results of the attempts. The employee’s representative may sign the declaration or affidavit required by this subdivision if the information submitted does not require the personal knowledge of the employee.
(e)The information required in paragraphs (3) to (13), inclusive, of subdivision (d) shall be provided in one of the following ways:
(1)Submission of a copy of a judgment obtained from a court or an award from the Labor Commissioner that was issued after a contested proceeding that contains all of the information in paragraphs (3) to (13), inclusive, of subdivision (d). If the judgment or award omits any of the required information, it shall be supplemented by a declaration under penalty of perjury that provides the missing information. The declaration shall be signed by the employee or the employee’s authorized representative, if the information submitted does not require the personal knowledge of the employee.
(2)Submission of a copy of a judgment obtained from a court or an award from the Labor Commissioner that was issued after an uncontested or default proceeding and a declaration under penalty
of perjury that provides the information required in paragraphs (3) to (13), inclusive, of subdivision (d). The declaration must be signed by the employee or the employee’s authorized representative if the information submitted does not require the personal knowledge of the employee.
(3)Submission of a copy of a citation from the Labor Commissioner that is not subject to appeal and that contains all of the information in paragraphs (3) to (13), inclusive, of subdivision (d). If the citation omits any of the required information, it shall be supplemented by a declaration under penalty of perjury that provides the missing information. The declaration shall be signed by the employee or the employee’s authorized representative, if the information submitted does not require the personal knowledge of the employee.
(4)If no judgment has been obtained from a court or an award from the Labor Commissioner, submission of a declaration under penalty of perjury that contains all of the information required in paragraphs (3) to (13), inclusive, of subdivision (d). The declaration must be signed by the employee or the employee’s authorized representative if the information submitted does not require the personal knowledge of the employee.
(f)If the Labor Commissioner determines that a declaration required under this section is insufficient to sustain a recovery from the Garment Manufacturers Special Account because of lack of information, or reason to believe that the information submitted was inaccurate, incomplete, or false, the Labor Commissioner may order an investigatory hearing pursuant to
subdivision (g).
(g)
(3)In the hearing, the employer and the employee shall have the opportunity to present evidence. The Labor Commissioner shall issue, serve, and enforce any necessary subpoenas.
(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 that 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, or may file a claim with the Labor Commissioner pursuant to Section 2673.1, against any person deemed
to be an employer to recover any unpaid minimum wages, overtime pay, break premiums, liquidated damages, and any other penalties, attorney’s fees, or costs to which the employee may be entitled.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.