BILL ANALYSIS Ó AB 1384 Page 1 ASSEMBLY THIRD READING AB 1384 (Labor and Employment Committee) As Introduced March 4, 2013 Majority vote LABOR & EMPLOYMENT 7-0APPROPRIATIONS 16-1 ----------------------------------------------------------------- |Ayes:|Roger Hernández, Morrell, |Ayes:|Gatto, Harkey, Bigelow, | | |Alejo, Chau, Gomez, | |Bocanegra, Bradford, Ian | | |Gorell, Holden | |Calderon, Campos, Eggman, | | | | |Gomez, Hall, Ammiano, | | | | |Linder, Pan, Quirk, | | | | |Wagner, Weber | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Donnelly | | | | | | ----------------------------------------------------------------- SUMMARY : Establishes civil penalties for a garment manufacturer who fails to display specified information at the front entrance of the business, as required under existing law. Specifically, this bill : 1)Provides that any person who fails to comply with the requirement will be subject to civil penalty of $100 per calendar day for an initial citation. 2)Provides for a penalty of $200 per day for any subsequent citation. 3)Provides that the procedures for issuing, contesting and enforcing citations and judgments for the civil penalties will be the same as under existing law. EXISTING LAW : 1)Requires every person engaged in the business of garment manufacturing to register with the Labor Commissioner and meet other specified requirements. 2)Requires every person registered as a garment manufacturer to display his or her name, address, and garment manufacturing AB 1384 Page 2 number on the front of his or her business, as specified. 3)Authorizes the Labor Commissioner to waive this requirement if he or she finds compliance to be infeasible due to the design or layout of the business premises. FISCAL EFFECT : According to the Assembly Appropriations Committee, this bill will result in annual costs of approximately $100,000 to the Department of Industrial Relations (DIR) to accommodate additional workload. COMMENTS : This bill would establish a civil penalty for a garment manufacturer who fails to display their name, address and garment manufacturing registration number outside the business entrance, as required by current law. Existing law requires every person engaged in the business of garment manufacturing to register with the Labor Commissioner. In addition, existing law requires that every person registered as a garment manufacturer shall display on the front entrance of his or her business premise, and also, if the front entrance is within the interior of a building, on or near the main exterior entrance of the building in which his or her business premise is located, his or her name, address, and garment manufacturing registration number, all in letters not less than three inches high. Certain exemptions to this provision exist, including a waiver of this requirement if the Labor Commissioner finds that compliance would not be feasible due to the design or layout of a business premise. Despite the significance of this posting requirement for enforcement efforts (the posted information helps both garment workers and the Labor Commissioner to identify the name and address of garment companies that violate labor laws), there is no civil penalty specified for a violation of this section. Therefore, this bill would establish a civil penalty of $100 per day for failure to post the mandated information. For subsequent violations, the civil penalty would be $200 per day. Supporters argue that, in an industry dominated by labor contractors who often try to conceal their true business identities, it is appropriate that there be significant AB 1384 Page 3 sanctions against those who engage in these practices. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 FN: 0000408