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California’s Labor Code and the Fair Labor Standards Act (FLSA) regulate certain types of work performed in the home. Though most of these laws target manufacturing, they can be construed broadly enough to include much of the work done using home technology. If industrial homework laws apply, permits are required. You have a number of legal responsibilities as an employer of an industrial homeworker.
Industrial homework is the manufacture of materials or articles in a home for an employer when these articles or materials are not for the personal use of the employer or a member of their family. Industrial homework includes activity to make, process, prepare, alter, repair or finish (in whole or in part) or to assemble, inspect, wrap or package any articles or materials.
The Labor Code establishes restrictions on industrial homework activities in any room, house, apartment or other premises used in whole or in part as a place of dwelling, including outbuildings, such as garages, under the control of the person dwelling on the premises.1 Licenses and permits may be required and specific laws govern what types of products can be produced and how those products must be identified. This topic contains the following information:
To employ an industrial homeworker in any industry, you must have a valid industrial homework license from the California Division of Labor Standards Enforcement (DLSE). This requirement applies to any person who:
Each employer of industrial homeworkers must pay a fee of $100 for a license, which is valid for a period of one year from the issue date unless revoked or suspended. The DLSE can revoke or suspend the license for violation of the law or regulations.2
An industrial homeworker must also have a valid homeworker’s permit issued by the California Division of Labor Standards Enforcement (DLSE). The permit fee is $25.3 The permit is valid for industrial homework performed for the particular licensed employer for a period of one year, unless revoked or suspended sooner. The permit applies only to the particular applicant in their own home. The DLSE can waive the fee if the applicant establishes financial hardship.
The DLSE will not issue a homeworker’s permit to any person:
Certain items cannot be produced by industrial homework. These include:
Articles manufactured by industrial homework must have a label or other mark of identification conspicuously affixed to each article or material. This label must bear your name and address printed or written legibly in English. If this is impossible, the label must be displayed on the package or other container in which the goods are kept.6
Negligent failure to prevent articles or materials under your custody or control from being taken to a home for manufacture by industrial homework is a misdemeanor.
Unlicensed employment of or use of an industrial homeworker or advertisement for industrial homework performance that is not permitted is a misdemeanor, with varying levels of punishment and fines depending on whether it is a first offense.
A person who does industrial homework without a valid permit is guilty of a misdemeanor. A first offense is punishable by a fine of not more than $50. A second offense is punishable by a fine of not more than $100. The court can suspend this fine under certain circumstances.7
Employers of industrial homeworkers must keep all of the following records and make them available for inspection:
1. Lab. Code secs. 2650-2667
2. Lab. Code sec. 2658
3. Lab. Code sec. 2660
4. Lab. Code sec. 2661
5. Lab. Code sec. 2651
6. Lab. Code sec. 2663
7. Lab. Code sec. 2660.5
8. Lab. Code sec. 2665