Labor Department Releases New AB633 Regulations

The Labor Department’s Division of Labor Standards Enforcement (DLSE) has released newly revised Assembly Bill 633 regulations called “manufacturer- and contractor-friendly” by the government agency.

DLSE attorney Miles E. Locker said most of the changes made to the regulations were technical, such as grammar and “non-substantive” changes, but noted there were some significant changes in favor of manufacturers’ and contractors’ previous concerns.

One of these significant changes is that contractors will no longer be required to list the percentages of work being done for each of their contracting manufacturers; however, they will be required to comply with the law by listing the names of the manufacturers on employees’ pay stubs for each work period.

“We realize that the task of determining the percentage of each job might be difficult for the contractor, when what is most important is to be able to [determine the] identity of the manufacturer,” Locker explained.

Other changes include granting a reasonable period (10 days) for manufacturers and contractors to comply with record inspections, as opposed to having to make them available “immediately,” and keeping manufacturers’ and contractors’ personal information, including social security number, address and driver’s license number, confidential.

The new regulations were sent to apparel manufactures, contractors, lawmakers and individual organizations that were present at past public hearings or that commented on the previous regulations.

There was a 15-day response period during which the public could submit to the DLSE questions and suggestions pertaining to the new regulations, Locker said, adding that his division only received two responses the day before the regulations’ April 15 deadline.

AB633 was passed in 1999 with intentions of holding manufacturers and contractors accountable for their contracted workers’ wages. Since then, lawmakers have worked with members of California’s apparel industry to find common ground in their efforts to move forward with the new law.

Joe Rodriguez, executive director of the Garment Contractors Association, said the regulations still require some reworking before they will work effectively in the industry.

Still, Locker said his department is close to finalizing the regulations.

“We have tried to establish a consensus on these regulations, but not all parties agree,” Locker said. “These regulations didn’t come about very easily, but what we have is something that will help us enforce the law.” —Claudia Figueroa