SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom has approved what he terms a nation-leading law requiring the garment industry to pay workers by the hour instead of for each piece of clothing they produce.
Supporters said piece-rate compensation can be used to pay workers below the minimum wage.
The bill Newsom signed Monday makes California the first state to eliminate piece work compensation, though there is an exception for worksites covered by collective bargaining agreements.
It's also the first to create liability for companies that subcontract with the garment makers.
The California Chamber of Commerce predicts the law will put some employers out of business or cause them to move out of California.