SB 62 Becomes Law, Expands Fashion Brands’ Liability for Unpaid Wages

Labor violations in the Los Angeles garment industry are widespread, with some workers earning as little as $2.68 an hour. With the piece-rate system of pay frequently paying as little as two cents per piece of clothing completed, earning minimum wage is impossible for many garment workers.

On September 10, 2021, the California Legiislature passed SB 62, which establishes upstream liability for wage theft violations commited down the supply chain by contractors and sub contractors in the garment industry. On that same day, a coalition of investors with more than $4T in AUM urged Governor Newsom to sign SB 62 into law via an investor letter. 

On September 27, 2021 Governor Newsom signed SB 62 into law, taking decisive action to help keep workers safe on the job and combat unfair pay practices.