Industrial Homework Under the California Labor Code

California’s Labor Code has provisions related to “industrial homework” in Part 10 of Division 2. Part 10 was added in 1939 by Chapter 809. Section 2650 defines the following terms: “to manufacture,” “employer,” “home,” “industrial homework,” “division,” “industrial homeworker,” “to employ,” and “person.” “Industrial homework” means any manufacture in a home of materials or articles for an employer when such articles or materials are not for the personal use of the employer or a member of his or her family.

Section 2651 provides that the manufacture by industrial homework of any of the following materials or articles is unlawful, and no license or permit issued is to be deemed to authorize the manufacture of:

• Articles of food or drink;
• Articles for use in connection with the serving of food or drink;
• Articles of wearing apparel;
• Toys and dolls;
• Tobacco;
• Drugs and poisons;
• Bandages and other sanitary goods;
• Explosives, fireworks, and articles of like character;
• Articles, the manufacture of which by industrial homework is determined by the Division to be injurious to the health or welfare of the industrial homeworkers within the industry or to render unduly difficult the maintenance of existing labor standards or the enforcement of labor standards established by law or regulation for factory workers in the industry.

Section 2652 provides the Division with the power to make an investigation of any industry not specifically exempted and made unlawful which employs industrial homeworkers, in order to determine whether the wages and conditions of employment of industrial homeworkers in the industry are injurious to their health and welfare or whether the wages and conditions of employment of the industrial homeworkers have the effect of rendering unduly difficult the maintenance of existing labor standards or the enforcement of labor standards established by law or regulation for factory workers in the industry.

Section 2653 grants the Division the powers given to the head of a department. Section 2654 specifies that, if on the basis of information in its possession, with or without an investigation, the Division finds that industrial homework cannot be continued within an industry without injuring the health and welfare of the industrial homeworkers within that industry, or without rendering unduly difficult the maintenance of existing labor standards or the enforcement of labor standards established by law or regulation for factory workers in that industry, the division can by order declare the industrial homework to be unlawful and require all employers in the industry to discontinue manufacture by industrial homework.

Section 2655 states that, after making an order, the Division must hold a public hearing at which an opportunity to be heard is afforded to any employer, or representative of employers, and any industrial homeworker, or representative of industrial homeworkers, and any other person having an interest in the subject matter of the hearing. A public notice of each hearing must be given.

Section 2656 authorizes the Division to seek a search warrant to enable it to have access to, and to inspect, the premises of any industrial homeworker or distributor in this state. Section 2658 prohibits a person from employing an industrial homeworker in any industry not prohibited by law, unless the person employing an industrial homeworker has obtained a valid industrial homework license from the Division.

Section 2658.1 states that every person who, without having in their possession a then valid industrial homework license issued by the Division of Labor Standards Enforcement, negligently fails to prevent articles or materials under their custody or control from being taken to a home for manufacture by industrial homework, is guilty of a misdemeanor.

Section 2658.5 provides that a person who, without having in his or her possession a then-valid industrial homework license issued to them by the Division of Labor Standards Enforcement, employs an industrial homeworker, is guilty of a misdemeanor. It can be punished by a $1,000 fine or imprisonment for six months. Increasing financial penalties and jail sentences occur with multiple violations.

Section 2658.7 provides that any goods, assembled or partially assembled, whether found in the homeworker’s home, in transit to or from the home, or in the manufacturer’s or his contractor’s possession, which constitute evidence of a violation of industrial homework laws, must be confiscated by the Division and properly marked and identified.

Section 2659 prohibits a person from engaging, suffering, or permitting any person to do industrial homework, or tolerate, suffer or permit articles or materials under his custody or control to be manufactured by industrial homework by a person who is not in possession of either a valid employer’s license or homeworker’s permit issued in accordance with this part.

Section 2660 prohibits a person from doing industrial homework within this state unless he or she has in their possession a valid homeworker’s permit issued to them by the Division. The permit issued for a fee of $25 and is valid for five years.

Section 2660.1 states that every person doing industrial homework, with or without a valid homeworker’s permit issued by the Division, are required to reveal to the Division, on demand, the name and address of the employer, the name and address of the owner or source of the articles or materials for industrial homework, the rate of compensation and any other information known to the homeworker and pertinent to the enforcement of this section. This information revealed by the homeworker to the Division cannot be used by the Division in any action against or prosecution of the homeworker.

Section 2660.5 provides that every person who does industrial homework without having in their possession a valid homeworker’s permit issued to them by the Division is guilty of a misdemeanor. The court may suspend the fine on condition the industrial homeworker cooperates with the Division in the lawful prosecutions of persons violating this part and to secure compliance with this part, or on condition the defendant refrains from any future violation of this part.

Section 2661 prohibits any homeworker’s permit from being issued to any person under the age of 16 years; or to any person suffering from an infectious, contagious, or communicable disease, or to any person living in a home that is not clean, sanitary, and free from infectious, contagious, or communicable disease.

Section 2662 authorizes the Division to revoke or suspend any homeworker’s permit upon a finding that the industrial homeworker is performing industrial homework contrary to the conditions under which the permit was issued or in violation of this part or has permitted any person not holding a valid homeworker’s permit to assist him in performing industrial homework or on expiration or revocation of the industrial homework license of the employer.

Section 2663 prohibits a person from tolerating, suffering, or permitting any materials or articles to be manufactured by industrial homework unless there has been conspicuously affixed to each article or material or, if this is impossible, to the package or other container in which such goods are kept, a label or other mark of identification bearing the employer’s name and address, printed or written legibly in English.

Section 2664 provides that any article or material which is being manufactured in a home in violation of any provision of this part may be confiscated by the Division. Articles or material confiscated pursuant to this section are to be placed in the custody of the Division. In addition, the Labor Commissioner may affirm, modify, or dismiss the confiscation, and may order the return of none, some, or all of the confiscated articles or material, under terms that the Labor Commissioner may specify. 

Section 2665 states that every person who employs or otherwise avails himself of the services of industrial homeworkers in this State is required to comply with applicable labor standards under the Labor Code and keep in a manner approved by the Division, accurate information containing specified information. 

Section 2666 requires the Division of Labor Standards Enforcement to enforce the provisions of this part. The Division and the authorized representatives of the Department of Industrial Relations are authorized and directed to make all inspections and investigations necessary for the enforcement of this part.

Every employer is required to permit authorized employees of the Division free access to his place of business for the purpose of making investigations authorized by this part or necessary to carry out its provisions and permit them to inspect and copy his payroll or other records or documents relating to the enforcement of this part, or interview his employees or agents.

Section 2667 states that every person acting either individually or as an officer, agent, employee or independent contractor for another person who violates or refuses or neglects to comply with any provision of this part, or any regulation of the Division made in accordance with the provisions of this part is guilty of a misdemeanor.