CA Becomes 1st State To Require Hourly Pay For Garment Workers

CALIFORNIA — The Golden State this week became the first in the nation to do away with piece work compensation and to pay workers by the hour instead. Supporters of the new law argued that paying by the piece could be used to underpay workers.

Piece work is a type of employment in which a worker is paid a fixed rate for each product produced or action performed, regardless of time spent on the job.

The bill, signed by Gov. Gavin Newsom on Monday, also expanded fashion brands' liability for unpaid wages, including wage theft by contractors, according to the state. There is an exception for worksites that are covered by collective bargaining agreements.

"Today we won justice for garment workers," said the bill's author, Sen. María Durazo, in a statement. "For too long, bad-actor manufacturers have exploited garment workers toiling in unsanitary conditions for as little as $5 an hour."

The California Chamber of Commerce argued that the new law would increase costs and put garment industry employers out of business, forcing many to move operations outside of the state.

"The bill fails to address the root cause of the problems that exist in the garment industry: the need for increased enforcement of existing laws and education of workers and employers about California labor laws," CalChamber said in a statement.

The chamber further objected that the measure will also affect those that don't directly oversee garment workers but will now be liable for their mistreatment.

Legal Aid at Work, a supporter of the bill, said the broad liability under the law is necessary to “prevent bad-actor brands from obviating oversight and enforcement by layering contracts."

The measure was among 18 job-related bills signed by Newsom recently.

The Democratic governor signed a second measure by Durazo this week that will require all employees with disabilities to be paid at least minimum wage.

The state also became the 13th state to end a practice that allowed businesses with special licenses to pay people with disabilities below the minimum wage, according to the State Council on Developmental Disabilities. It is estimated that 12,000 Californians with disabilities who work in so-called sheltered workshops can be paid as little as 15 cents an hour under a federal policy that dates to 1938.

The Alliance Supporting People with Intellectual and Developmental Disabilities, which opposed the bill, argued that while the sheltered workshops have fallen out of favor, they employ only those who have agreed to work there or whose families have agreed that those are the best option.

Unless the state can develop other options, it said the law "effectively eliminates the prospect for employment for many and, therefore, limits the choices the person may have in front of them."

The law phased out the subminimum wages over three years and by Jan. 1, 2025, makes it illegal to pay an employee with physical or mental disabilities less than the legal minimum wage.

"California is holding corporations accountable and recognizing the dignity and humanity of our workers, who have helped build the fifth-largest economy in the world," Newsom said in a statement. "These measures protect marginalized low-wage workers, many of whom are women of color and immigrants, ensuring they are paid what they are due and improving workplace conditions.

"We are committed to having their backs as we work to build a stronger, more inclusive economy."