Piece Rate Pay Eliminated for Garment Workers in California

The year 2022 comes with many new employment laws enacted throughout California. Effective January 1, 2022, one of these news laws will outlaw the use of piece rate pay for garment workers in the state. As garment producers employ thousands of workers across California, this new law has the potential to affect the wages of many people next year. If you or someone you know believes that they are not being paid what they are owed by their employer, talk to an experienced California employment law attorney in your area today to learn more about your legal options.

Eliminating Piece Rate Pay

The new California law, SB 62, eliminates the ability of employers to pay garment workers piece rate pay for their work beginning next year. Under the piece rate pay method, an employee would be paid according to the number of garments produced during the workday. The new law mandates that all garment workers be paid at least minimum wage for all hours worked, with specific provisions allowed for garment workers who operate under a collective bargaining agreement. However, the new law does not prohibit incentive-based bonuses, including bonuses for producing a certain number of garments in a workday or workweek.

Employer Liability

SB 62 also creates joint and several liability for California garment manufacturers, contractors, and “brand guarantors” for the full amount of unpaid minimum, regular, overtime, and other premium wages, reimbursement for expenses, any other compensation, including interest, due to the employee in addition to reasonable attorneys’ fees and costs and civil penalties for the failure to secure valid workers’ compensation coverage for garment workers. Employers found to be continuing to pay their workers at a piece rate after the new year are also subject to damages of $200 per employee per pay period.

The new law defines a “brand guarantor” as any person contracting for the performance of garment manufacturing, regardless of whether the brand guarantor performs the manufacturing operations of the garment production or hires contractors or subcontractors to perform the work. Under the new law, the burden of proof shifts from the employees in garment manufacturing to the manufacturers, contractors, and brand guarantors to prove that they were not engaged in piece rate compensation starting in the new year. Under this rebuttable presumption, the employer must be able to prove with specific, compelling, and reliable written evidence that they have not continued to engage in piece rate pay. There is also a four year requirement for recordkeeping for all garment manufacturers and brand guarantors beginning in 2022.

Talk to an Employment Law Attorney

The shift from piece rate pay to minimum wage compensation means that thousands of garment workers may be entitled to substantially higher pay in the new year. If you or a loved one is dealing with wage violations in your workplace, call the office or contact a knowledgeable California employment law attorney in your area today.