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Industrial Homeworkers

California’s Labor Code and the Fair Labor Standards Act 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 his/her 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.

Licenses and Permits for Industrial Homework: 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:

• Engages or permits any person to do industrial homework
  
• Tolerates or permits articles or materials under his/her custody or control to be manufactured by industrial homework.
  
• 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.

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 $25.30 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 his/her 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:

• Who is under 16 years of age
  
• Who suffers from an infectious, contagious or communicable disease
  
• Who is living in a home that is not clean, sanitary and free from infectious, contagious or communicable disease.

Industrial Homework Records: Employers of industrial homeworkers must keep all of the following records and make them available for inspection:

• Full name and home address of each industrial homeworker that he/she employs.
  
• Amount and description of materials delivered to each industrial homeworker that he/she employs, with date of delivery and rate of compensation.
  
• Gross amount of compensation paid to each industrial homeworker that he/she employs and date of payment.
  
• Names and addresses of all agents or independent contractors who received materials or articles for manufacture by industrial homework, as well as the quantity, description of materials and date of delivery.
  
• Names and addresses of all manufacturers or independent contractors from whom he/she received articles or materials for industrial homework, as well as the quantity, description of materials and date of receipt.
  

Prohibited Products for Industrial Homework: Certain items cannot be produced by industrial homework. These include:

• 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
  
• Other articles as prohibited by regulation
  

Identification of Industrial Homework Products: 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.

Industrial Homework Violations: 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.