Labor Commissioner Revokes Garment Manufacturer’s License
The California Labor Commissioner has revoked the garment manufacturing license of VRP Fashion, Inc. for workplace violations, putting it out of business.
A May, 2021 inspection discovered that owner Veronica Rojas Pablo had falsely claimed in VRP’s license application that the company had no employees. The Commissioner also found that Ms. Pablo failed to produce evidence of workers’ compensation insurance, to respond to a stop work order and to appeal citations for VRP non-compliance. On a follow-up visit, Ms. Pablo reportedly barred the inspector from entry and had her workers leave out the back door.
VRP’s closure comes on the implementation of the Garment Workers Protection Act(GWPA), effective January 1, 2022, which bans “by the piece” compensation for garment workers except as an “incentive bonus” on top of minimum wage payment for every hour worked. Citing rife abuse of such workers, the GWPA also puts new teeth into state regulation of that industry, for example expanding the definition of “garment manufacturer” to retailers who have until now escaped enforcement by creating “layers of subcontracting.”
TAKE AWAYS:
- Employers must comply with all applicable – and changing – workplace laws;
- False statements and less-than-honest tactics in response to government regulation are never a good idea;
- For the exploitation cited in the GWPA’s enactment, California has a “new sheriff in town” to protect workers in this state’s garment industry, the largest in the nation.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- Cautionary Tale Episode 45 Old Boy Kill-Joy: EEOC Sues Employer for Sexual Harassment and Retaliation (September 30, 3031)
- Cautionary Tale Episode 44 Fined Dining: Restaurant Must Eat $1.6M Bill for Labor Violations (August 26, 2021)
- California Piece Work Is a Piece of Work: Haulers and Other Employers May Not Pay Purely by the Mile or Other Production (April 23, 2021)
Helena Kobrin
Tim Bowles
January 6, 2022