Has the enforcement of AB633 coincided with increased compliance with federal and state employment laws?
One problem is the ratio of investigators to garment shops is very low. For example, in Los Angeles there are approximately eleven inspectors dedicated to the garment industry and there are about 5,000 shops in the same area. So it is rare to be randomly inspected. In a time of budget crisis, the solution is more strategic efforts. DLSE’s recently created Low Wage Industries Office and Task Force have used very effective methods to increase enforcement, but it really takes that kind of experienced, targeted effort by investigators given enough time and training to combat what’s largely an underground economy. The stakes for this are very high, since delinquent garment shops cost the state millions of dollars in unreported payroll taxes, workers’ compensation premiums, etc. Q: What economic effect has AB633 had on the contractors and manufacturers? Can they afford to pay workers’ claims over the long run? A: Contractors are in a difficult position because retailers and manufacturers set
Related Questions
- Does the State prevailing wage rate have to be paid on federal construction projects requiring compliance with the Davis-Bacon Act?
- When does oversight begin at the State and Federal levels once compliance is required and work takes place using ARRA funds?
- How does the Office of Federal Contract Compliance Programs carry out its enforcement responsibilities?
