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A new California state law caused quite a bit of disturbance amongst the apparel industry community in Los Angeles causing many to think about packing up and shipping to overseas factories.

With many already cutting into their sales and profits due to paying workers compensation, taxes and now a state mandated law proposal to enforce all state employers to pay at least 7.5% of their payroll to cover the cost of health-care insurance for full-time and part-time employees and their dependents or pay into a state pool that would provide coverage.

Many apparel producers are saying this is just giving them more reason to move to overseas factories and start production there, because domestic production is becoming more and more costly. Even though some apparel makers already provide full health care coverage they still wonder about the rules, cost and regulations of a state mandated plan.

source-ApparelNews

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