The FABRIC Act amends federal labor law to regulate the garment manufacturing industry. The bill prohibits employers from paying garment workers by piece rate and requires them to pay at least the federal minimum wage on an hourly basis, though it allows performance-based bonuses. The legislation extends liability to major clothing brands and retailers that contract with manufacturers, making them jointly responsible for labor violations by their suppliers, unless the brand can show it had no knowledge of wrongdoing. The bill also requires garment manufacturers and contractors to register annually with the Department of Labor, providing detailed information about ownership, employees, and any prior labor violations, with registration fees starting at $200 per year. To enforce these requirements, the bill creates a new Undersecretary of the Garment Industry position within the Department of Labor and authorizes approximately $60 million in funding over several years, plus an additional $50 million for grants to support domestic garment manufacturing and workforce development. The regulations take effect six months after the bill becomes law.
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