eCommerce expert discusses new requirement for hourly wages in garment industry

California

Gov. Gavin Newsom recently signed what he termed a “nation-leading” law requiring the garment industry to pay workers by the hour instead of for each piece of clothing they produce.

California is now the first state to eliminate piece work compensation, though there is an exception for worksites covered by collective bargaining agreements, and the first to create liability for companies that subcontract with the garment makers.

Piece-rate compensation can be used to pay workers below the minimum wage, supporters said.

“For too long, bad-actor manufacturers have exploited garment workers toiling in unsanitary conditions for as little as $5 an hour,” said Democratic Sen. María Elena Durazo. She said her bill will “level the playing field for ethical manufacturers that are doing the right thing.”

Mark Kapczynski, the chief marketing officer of Gooten, joined Sonseeahray to talk about the law’s impact on the industry.

The Associated Press contributed to this report.

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