Farm Labor Contractors and Garment Manufacturers Face New California Licensing Requirements

1. FLCs and garment manufacturers attempting to get either a new license or a license renewal or who wish to change persons identified as key personnel to submit statements declaring that they have paid all unpaid wage requirements resulting from a court judgment, Labor commissioner's order or an accord;

2. Liability for a civil penalty up to $25,000 for any person who provides false information on these statements;

3. The Labor Commissioner to deny the application if it shows unpaid wages, unless the applicant submits a bond or cash deposit to guarantee payment of the wages or a notarized accord demonstrating satisfaction of the debt;

4. The Labor Commissioner to suspend the license or registration of a FLC or garment manufacturer who it later determines to have made a false representation in the statements and would make reinstatement contingent on the applicant demonstrating compliance with the unpaid wages or submitting an accord showing satisfaction of the debt;

5. Any licensee or registrant to notify the Labor Commissioner within 90 days of a final court judgment, final order issued by the Commissioner or an accord imposing requirements relating to unpaid wages and submit with the notice security for unpaid wages;

6. Any licensee or registrant from having a person who is named a judgment debtor in a final court order or order issued by the Commissioner for unpaid wages serving in a key personnel capacity and would require the Commissioner to suspend the license or registration of a person who violates this prohibition; and

7. A licensee or registrant to pay to the Labor Commissioner all reasonable costs incurred in adverse license or registration activities, as defined, under its provision.

Counsel to Management:

While many of these requirements would only apply to FLCs and garment manufacturers who are applying for a license, renewing their license or attempting to change persons identified as key personnel; employers must be careful to note that the new law does impose a requirement for all existing FLCs and garment manufacturers.  All FLCs and garment manufacturers that hold a valid license from the Labor Commissioner must report any order regarding unpaid wages to the Labor Commissioner and must submit security for those wages and if they fail to do so, can have their licenses suspended as well as pay the costs incurred by the Labor Commissioner.  Employers must keep this in mind if they have any pending lawsuits that are wage related and must report any judgments resulting from them in 90 days. 

If employers need any help properly reporting a judgment or further comprehending these new rules, they should feel free to contact the Saqui Law Group.