February 2024

State Updates


California releases further guidance on pay of garment workers


Author: ADP Admin/Monday, January 31, 2022/Categories: Compliance Corner , State Compliance Update, California

The California Department of Industrial Relations has released frequently asked questions regarding the Garment Worker Protection Act, which took effect on Jan. 1, 2022. This law addresses proper payment of employees in the garment industry and the responsibility for parties contracting to have garment operations performed.


On September 27, 2021, California Governor Gavin Newsom signed into law Senate Bill 62 (SB 62), which prohibits employers from paying employees engaged in garment manufacturing on a piece rate basis, except in limited circumstances.  This new law does not apply to workplaces where employees are covered by a bona fide collective bargaining agreement.

SB 62 also increased the amount of time garment manufacturers must keep certain records. Prior law required every employer engaged in the business of garment manufacturing to keep certain records for three years, including, contract worksheets indicating the price per unit agreed to between the contractor and manufacturer. The new law requires every employer engaged in the business of garment manufacturing to keep all contracts, invoices, purchase orders, work orders, style or cut sheets, and any other documentation pursuant to which garment manufacturing work was, or is being, performed for four years.

Among other penalties, SB 62 stipulates that employers will be subject to compensatory damages of $200 per employee for each pay period the worker was paid by a piece rate.

Frequently Asked Questions:

The guidance specifically provides key definitions and addresses the elimination of piece rate for garment workers, employer liability, recordkeeping responsibilities, licensing and registration requirements  under the new law, and enforcement matters.

For a copy of the frequently asked questions, please click on the link provided below. 


Next Steps

Employers subject to the law should be familiar with the new requirements of SB 62, review the frequently asked questions for clarifications and discuss with their legal counsel where appropriate.

For a copy of SB 62 please click on the link provided below.


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Tags: 02/03/22

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