C & C Partners, Ltd. v. Department of Industrial Relations

J.The Division of Labor Standards Enforcement of California’s Department of Industrial Relations (State) appeals from a judgment and writ of mandate issued by the superior court. The court set aside a citation issued by the State to C & C Partners, Ltd., and C & C Traders, Inc. (C & C). It further ordered the State to return a $20,000 civil penalty C & C paid and a $5,000 surety bond C & C posted. In this case of first impression, we decide: (1) when a garment manufacturer operates without a registration certificate, all of its employees are affected and a penalty of $100 per employee for a first violation is proper under Labor Code section 2678, and (2) a garment manufacturer who has been cited and penalized under any of the garment manufacturing statutes within the preceding three years must post a bond in order to secure a registration certificate.

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On March 2, 1995, C & C, a garment manufacturer and distributor, applied for a garment manufacturer’s registration certificate. While the application was pending, and as part of its investigation of another business, State inspectors discovered C & C was operating without a registration certificate. The State cited C & C…