30/08/2020 SB 1399 makes retailers accountable for garment worker pay - Los Angeles Times Garment workers rally in downtown Los Angeles in 2016 to demand an end to wage theft and unsafe working conditions. (Los Angeles Times) “This new law is all-encompassing, and it paints the whole industry as a bad apple — that is my problem. We are not all Fashion Nova and Forever 21,” said Ilse Metchek, president of the California Fashion Assn. trade group, who fears big chains such as Nordstrom and other retailers will stop contracting for apparel in the state. “You are picking the worst of the worst.” ADVERTISEMENT Fashion Nova declined to comment on Metchek’s remarks but has announced reforms of its contracting practices. That includes a mandate that its contractors and subcontractors agree to random independent audits and that their workers are paid the applicable minimum wage, which in Los Angeles rises to $15 an hour for employers of all size next July. It is also establishing a toll-free hotline for workers to report abuses and has instituted an escalating system of penalties for violators of its agreements. The company said it recently suspended 10 vendors that refused to submit to third-party audits. Fashion Nova would not comment on what percentage of its clothing it continues to make in Los Angeles, but it did say it continues to work with more than 50 local vendors. “Fashion Nova continues to support the various steps taken by government agencies and factories towards improving working conditions for garment workers, including the latest legislation proposed with SB 1399,” the company said in a statement to The Times. Surprised labor advocates speculate the company wants to avoid more negative publicity but applauded the decision and called on other apparel makers to join it. “We’re certain both business and workers can thrive under SB 1399,” the sponsors said in a statement. ADVERTISEMENT https://www.latimes.com/business/story/2020-08-17/fashion-brands-garment-workers-sb1399-joint-liability-piece-rate 5/13