Why California Garment Laws Are Tough on Indie Designers
If you’re planning to produce your clothing line in California, you’ll quickly learn that the state has some of the strictest garment labor laws in the country. These laws were designed to protect workers in an industry historically plagued by underpayment and poor conditions — but they also place heavy burdens on small and emerging designers.
What the California Garment Contractor License Really Means
Anyone who sews, cuts, assembles, or finishes garments in California must hold a valid Garment Contractor License. This applies whether you’re a large factory or a small studio making short runs. Even if you hire just one sample maker or cutter, the state may consider you a contractor.
The Requirement for Brands: Manufacturer Registration
It doesn’t stop at contractors. Brands that outsource production to sewing shops must also register as manufacturers with the Department of Industrial Relations (DIR). This means indie designers who don’t sew at all but sell clothing under their own label are legally responsible for ensuring their contractors are licensed.
Joint Liability — Even if You’re Incorporated Elsewhere
California enforces something called “joint liability.” That means if you hire an unlicensed contractor, your brand can be held just as responsible for any violations — even if you’re incorporated in another state. Simply forming your LLC in Nevada, Delaware, or New York won’t shield you. If the work happens in California, California law applies.
Penalties for Non-Compliance
The penalties for skipping licensing or registration are steep:
Fines that stack up quickly.
Orders to stop production until you’re compliant.
Liability for unpaid wages if a contractor fails to pay workers.
Risk of retailers refusing to carry your line due to compliance concerns.
For small indie brands, one compliance issue can derail an entire collection launch.
Why This Hits Indie Brands Hardest
Large companies have compliance teams and legal budgets to handle licensing and recordkeeping. Indie designers usually don’t. Managing paperwork, wage bonds, and compliance audits takes time and money that could otherwise go into design, marketing, and brand growth.
Is There Any Way Around It?
The only true way to avoid California’s garment licensing requirements is to manufacture outside the state. Producing overseas or out-of-state means California’s strict licensing laws don’t apply. For indie brands, this can eliminate a major source of stress and expense.
Final Thoughts: Know Before You Sew
California is still a hub for fashion production, but indie designers should know the risks before committing to local manufacturing. Licensing, registration, and joint liability aren’t optional — they’re heavily enforced. Understanding these laws upfront can help you avoid costly surprises and make better decisions about where and how to produce.
How Stella Luna & Co. Can Help
At Stella Luna & Co., we manage production with our trusted overseas partners, offering indie brands a way to bypass California’s strict licensing requirements. With us, you can focus on design and brand building while we handle the complexity of manufacturing.