To amend the Fair Labor Standards Act of 1938 to prohibit employers from paying employees in the garment industry by piece rate, to require manufacturers and contractors in the garment industry to register with the Department of Labor, and for other purposes.
About This Bill
Committee
Latest Action · September 14, 2023
Referred to the House Committee on Education and the Workforce.
The FABRIC Act (Fashioning Accountability and Building Real Institutional Change Act) makes major changes to how garment industry workers are paid and how the industry is regulated. The bill prohibits employers from paying garment workers by piece rate and instead requires hourly wages at least equal to the federal minimum wage, though it allows performance bonuses and exempts workers covered by certain collective bargaining agreements. The bill also holds clothing brands and manufacturers "jointly and severally liable" for wage violations committed by their contractors and subcontractors, meaning brands can be held responsible for labor law violations throughout their supply chain. Beginning six months after enactment, garment manufacturers and contractors must register annually with the Department of Labor, providing detailed information about ownership, workers, and compliance history, with registration fees of at least $200 per year. The bill creates a new Undersecretary of the Garment Industry position within the Labor Department and authorizes $10 million for fiscal year 2022 and $3 million annually through 2027 to administer the registration system, plus $50 million for a grant program supporting domestic garment manufacturing and workforce development.
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