California has the highest concentration of garment industry workers in the United States, and manufacturers should be aware of a big change going into effect January 1, 2022. For a long time, garment industry workers have been paid by the piece rate, i.e., according to the number of units turned out. With Senate Bill No. 62 (SB62) signed by the Governor on September 27, 2021, that will change in the new year with the Garment Worker Protection Act. With limited exceptions, the Garment Workers Protection Act prohibits compensating garment industry workers by the piece or unit, or by piece rate, and instead requires that employees engaged in the performance of garment manufacturing shall be paid at an hourly rate not less than the applicable minimum wage. Cal. Lab. Code § 2673.2.
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