ASSEMBLY, No. 2463

 

STATE OF NEW JERSEY

 

INTRODUCED NOVEMBER 7, 1996

 

 

By Assemblyman GARCIA

 

 

An Act increasing penalities for violations in the apparel industry of certain laws regarding workplace standards and amending P.L.1987, c.458.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 6 of P.L.1987, c.458 (C.34:6-149) is amended to read as follows:

    6. The apparel industry unit shall have the following powers:

    a. To investigate and conduct inspections at locations where an apparel industry manufacturer or contractor is operating to ensure compliance with this act;

    b. To inspect books, records and premises of manufacturers and contractors, with respect to their production employees, to determine compliance with the State's labor laws, including but not limited to, laws concerning wages, overtime compensation, unemployment compensation and temporary disability insurance, workers' compensation coverage, child labor, and industrial homework laws, and, if the apparel industry unit determines that a manufacturer or contractor has violated a provision of any of those laws with respect to its production employees, to assess and collect, on behalf of the commissioner, any administrative penalty authorized by law. If the violation is of a provision of a labor law for which the assessment and collection of an administrative penalty is not otherwise authorized, or, if no other agency of the State attempts to assess or collect an administrative penalty for the violation, the apparel industry unit is hereby authorized to assess and collect an administrative penalty [, up to a maximum] of not less than $250 and not more than $500 for a first violation and [up to a maximum of] not less than $500 and not more than $1,000 for each subsequent violation, specified in a schedule of penalties promulgated by rule or regulation of the commissioner in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). No administrative penalty shall be levied pursuant to this subsection unless the commissioner or his designee provides the violator with notification of the violation and of the amount of the penalty by certified mail and an opportunity to request a hearing within 15 days following the receipt of the notice. If a hearing is requested, the commissioner, or his designee, may issue a final order upon such hearing and a finding that a violation has occurred. If no hearing is requested, the notice shall become a final order upon the expiration of the 15-day period. Payment of the penalty is due when a final order is issued or when the notice becomes a final order. Any penalty imposed under this subsection may be recovered with costs in a summary proceeding pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.). Any penalty imposed under this subsection shall be paid to the Division of Workplace Standards and applied to enforcement and administrative costs of the division; and

    c. To serve as the designee of the commissioner for the purpose of taking any action authorized by this act necessary to implement its provisions.

(cf: P.L.1991, c.189, s.8)

 

    2. Section 7 of P.L.1987, c.458 (C.34:6-150) is amended to read as follows:

    7. a. Any manufacturer or contractor who has failed to comply with the registration requirements of section 3 of this act shall be deemed to have violated this act.

    b. Any manufacturer or contractor who has failed to comply, for the second time within any three-year period, with an order issued by the commissioner to comply with the registration requirements of section 3 of this act shall be deemed to have violated this act.

    c. Any manufacturer or contractor who contracts for the performance of any apparel industry service, as identified in subsection a. of section 2 of this act, with any other manufacturer or contractor whom the manufacturer or contractor knows does not hold a valid registration shall be deemed to have violated this act. A contractor or manufacturer who knowingly violates this subsection c. within three years after having been found liable for a civil or administrative penalty for violating this subsection c. is guilty of a crime of the fourth degree.

    d. No manufacturer or contractor shall perform services or hold himself out as being able to perform services as a registered manufacturer or contractor unless he holds a valid registration pursuant to this act. A contractor or manufacturer who knowingly violates this subsection d. within three years after having been found liable for a civil or administrative penalty for violating this subsection d. is guilty of a crime of the fourth degree.

    e. If the commissioner or his designee determines that any manufacturer or contractor commits a violation as provided in subsection a., b., or c. of this section, or violates subsection d. of this section, the commissioner or his designee may impose a civil penalty, and such penalty shall be made with due consideration of the size and past experience of the manufacturer or contractor and the seriousness of the violation, upon the manufacturer or contractor [up to $1,000.00] of not less than $1,000 and not more than $2,000 for an initial violation and [up to $2,000.00] not less than $2,000 and not more than $4,000 for each subsequent violation, and, as an alternative or in addition to the civil penalty, the commissioner or his designee is authorized to assess and collect an administrative penalty, [up to a maximum] of not less than $250 and not more than $500 for a first violation and [up to a maximum of] not less than $500 and not more than $1,000 for each subsequent violation, specified in a schedule of penalties to be promulgated by rule or regulation of the commissioner in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). No administrative penalty shall be levied pursuant to this subsection unless the commissioner or his designee provides the violator with notification of the violation and of the amount of the penalty by certified mail and an opportunity to request a hearing within 15 days following the receipt of the notice. If a hearing is requested, the commissioner, or his designee, may issue a final order upon such hearing and a finding that a violation has occurred. If no hearing is requested, the notice shall become a final order upon the expiration of the 15-day period. Payment of the penalty is due when a final order is issued or when the notice becomes a final order. Any penalty imposed under this subsection may be recovered with costs in a summary proceeding pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.). The civil or administrative penalties shall be paid to the Division of Workplace Standards and applied to enforcement and administrative costs of the division, except as provided in subsection b. of section 11 of this act. Any civil penalty imposed pursuant to this section shall be enforceable in a summary manner pursuant to Rule 4:70 of the Rules Governing the Courts of the State of New Jersey.

    f. If any manufacturer or contractor fails to comply with an order by the commissioner to register or renew registration, the commissioner may seek and obtain in a summary action in Superior Court an injunction prohibiting such unlawful activity.

    g. An intentional failure to comply with the registration requirements of section 3 of this act shall be a crime of the fourth degree.

    h. The commissioner or his designee may, after a hearing thereon, and after due consideration of the size and past experience of the manufacturer or contractor and the seriousness of the violation, require as a condition of continued registration, the payment of a surety bond or may revoke, by order, the registration of any manufacturer or contractor for any period ranging from 30 days to one year upon being found guilty of:

    (1) A second violation of the same provision of this act within any three-year period; or

    (2) A second violation within any three-year period of the same provision of any other labor law applicable to the employment of production employees.

    The surety bond shall be payable to the State and shall be for the benefit of production employees damaged by any failure of the manufacturer or contractor to pay wages or benefits or otherwise comply with the provisions of law. The surety bond shall be in the sum and form that the commissioner deems necessary for the protection of the production employees, but shall not exceed $2,500 per production employee.

    i. Any manufacturer or contractor who contracts, for the second time within any three-year period, for the performance of any apparel industry service with any other manufacturer or contractor whom the manufacturer or contractor knows has failed to comply with the registration requirements of section 3 of this act, shall, if the other manufacturer or contractor has failed to pay any civil penalty assessed under subsection e. of this section, be liable to pay a civil penalty equal to the civil penalty that the other manufacturer or contractor has been assessed.

    j. Nothing herein shall affect either the authority of the department to enforce the industrial homework laws of this State or the right of any manufacturer to possess or repossess any apparel, or sections or components of apparel, that are located at any contractor with whom it has contracted.

(c: P.L.1991, c.189, s.9.)

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill increases penalties imposed by P.L.1987, c.458 (C.34:6-144 et seq.) for violations in the apparel industry of certain laws setting workplace standards.

    In the case of a manufacturer or contractor in the apparel industry who fails to comply with that law’s requirements related to registration, civil penalties are increased from up to $1,000 for a first violation and up to $2,000 for a subsequent violation to not less than $1,000 and not more than $2,000 for a first violation and not less than $2,000 and not more than $4,000 for a subsequent violation. In such cases the administrative penalties are increased from up to $250 for a first violation and up to $500 for a subsequent violation to not less than $250 and not more than $500 for a first violation and not less than $500 and not more than $1,000 for a subsequent violation.

    In the case of a manufacturer or contractor in the apparel industry who violates other State labor laws, including laws concerning wages, overtime compensation, unemployment and temporary disability insurance, workers' compensation, child labor and industrial homework, the administrative penalties are increased from up to $250 for a first violation and up to $500 for a subsequent violation to not less than $250 and not more than $500 for a first violation and not less than $500 and not more than $1,000 for a subsequent violation.

    In sum, the bill establishes, in each case subject to its provisions, a minimum penalty equal to the current maximum penalty and increases the maximum penalty to an amount twice as large as the current maximum penalty.

 

 

                             

Increases penalties for violations of workplace standards in the apparel industry.