I 

118TH CONGRESS 

1ST SESSION H. R. 5502 

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. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 14, 2023 

Mr. NADLER (for himself, Ms. TLAIB, Ms. LEE of California, Ms. NORTON, 

Ms. VELA ́ZQUEZ, and Ms. ROSS) introduced the following bill; which was 

referred to the Committee on Education and the Workforce 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fashioning Account5 ability and Building Real Institutional Change Act’’ or the 

6 ‘‘FABRIC Act’’. 


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1 SEC. 2. PAYMENT AND LIABILITY REQUIREMENTS IN THE 

2 GARMENT INDUSTRY. 

3 (a) IN GENERAL.—The Fair Labor Standards Act of 

4 1938 (29 U.S.C. 201 et seq.) is amended— 

5 (1) by inserting after section 7 (29 U.S.C. 207) 

6 the following: 

7 ‘‘SEC. 8. REQUIREMENTS FOR THE GARMENT INDUSTRY. 

8 ‘‘(a) PROHIBITION AGAINST PAYMENT BY PIECE

9 RATE.—No employer shall pay an employee employed in 

10 the garment industry, who in any workweek is engaged 

11 in commerce or in the production of goods for commerce, 

12 or is employed in an enterprise engaged in commerce or 

13 in the production of goods for commerce, by the piece or 

14 unit, or by piece rate. 

15 ‘‘(b) HOURLY RATES.— 

16 ‘‘(1) IN GENERAL.—An employer shall pay each 

17 employee employed in the garment industry, who in 

18 any workweek is engaged in commerce or in the pro19 duction of goods for commerce, or is employed in an 

20 enterprise engaged in commerce or in the production 

21 of goods for commerce, at an hourly rate that is not 

22 less than the rate in effect under section 6(a)(1). 

23 ‘‘(2) INCENTIVE BONUSES.—Nothing in this 

24 section shall be construed to prohibit incentive-based 

25 bonuses for employees employed in the garment in26 dustry. 


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1 ‘‘(c) JOINT AND SEVERAL LIABILITY OF BRAND

2 GUARANTORS.— 

3 ‘‘(1) IN GENERAL.—A brand guarantor who 

4 contracts with an employer of an employee described 

5 in paragraph (2) for the performance of services in 

6 the garment industry shall share joint and several li7 ability with such employer for any violations of the 

8 employer under this Act involving such employee 

9 while the employee is performing work with respect 

10 to such brand guarantor. 

11 ‘‘(2) EMPLOYEES.—An employee described in 

12 this paragraph is any employee employed in the gar13 ment industry who in any workweek is engaged in 

14 commerce or in the production of goods for com15 merce, or is employed in an enterprise engaged in 

16 commerce or in the production of goods for com17 merce. 

18 ‘‘(3) SUBCONTRACTS.—For purposes of para19 graph (1), an employer of an employee described in 

20 paragraph (2) includes any other person who, 

21 through 1 or more subcontracts, subcontracts with 

22 the employer of such an employee for the perform23 ance of services in the garment industry. 

24 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

25 this subsection shall be construed to preclude a deVerDate Sep 11 2014 01:06 Sep 16, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5502.IH H5502

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1 termination of joint employment, in the garment in2 dustry or otherwise, for entities other than brand 

3 guarantors. 

4 ‘‘(d) NONAPPLICABILITY.—Subsections (a) and (b) 

5 shall not apply for purposes of an employee employed in 

6 the garment industry who is covered by a bona fide collec7 tive bargaining agreement that expressly provides for— 

8 ‘‘(1) wages, hours of work, and working condi9 tions of the employee; 

10 ‘‘(2)(A) a wage rate for all hours worked by the 

11 employee in excess of 40 hours in a week that is 

12 greater than one and one-half times the regular rate 

13 at which such employee is employed; and 

14 ‘‘(B) a minimum hourly rate of pay for the em15 ployee that is not less than 10 percent more than 

16 the higher of— 

17 ‘‘(i) the minimum wage rate under an ap18 plicable State law; or 

19 ‘‘(ii) the minimum wage rate in effect 

20 under section 6(a)(1); and 

21 ‘‘(3) a process to resolve disputes concerning 

22 nonpayment of wages. 

23 ‘‘(e) REGULATIONS.—The Secretary may prescribe 

24 such regulations or other guidance as may be necessary 

25 to carry out this section. 


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1 ‘‘(f) DEFINITIONS.—In this section: 

2 ‘‘(1) BRAND GUARANTOR.—The term ‘brand 

3 guarantor’ means any person contracting for the 

4 performance of garment manufacturing, including 

5 through licensing of a brand or name, regardless of 

6 whether the party with whom the person contracts 

7 performs the manufacturing operations or hires gar8 ment contractors to perform the manufacturing op9 erations. 

10 ‘‘(2) GARMENT.—The term ‘garment’ includes 

11 any article of wearing apparel or accessory designed 

12 or intended to be worn by an individual, including 

13 clothing, hats, gloves, handbags, hosiery, ties, scarfs, 

14 and belts. 

15 ‘‘(3) GARMENT CONTRACTOR.—The term ‘gar16 ment contractor’— 

17 ‘‘(A) means any person who, with the as18 sistance of an employee or any other individual, 

19 is primarily engaged in garment manufacturing 

20 for another person, including for another gar21 ment contractor, a garment manufacturer, or a 

22 brand guarantor; and 

23 ‘‘(B) includes a subcontractor that is pri24 marily engaged in garment manufacturing. 


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1 ‘‘(4) GARMENT INDUSTRY.—The term ‘garment 

2 industry’ means the industry of garment manufac3 turing. 

4 ‘‘(5) GARMENT MANUFACTURER.—The term 

5 ‘garment manufacturer’ means any person who is 

6 engaged in garment manufacturing who is not a gar7 ment contractor. 

8 ‘‘(6) GARMENT MANUFACTURING.— 

9 ‘‘(A) IN GENERAL.—The term ‘garment 

10 manufacturing’ means— 

11 ‘‘(i) sewing, cutting, making, proc12 essing, repairing, finishing, assembling, 

13 pressing, or dyeing a garment, including a 

14 section or component of a garment, de15 signed for or intended to be worn by an in16 dividual, which is to be sold or offered for 

17 sale or resale; 

18 ‘‘(ii) altering the design, or causing 

19 another person to alter the design, of a 

20 garment described in clause (i): 

21 ‘‘(iii) affixing a label to a garment de22 scribed in clause (i); 

23 ‘‘(iv) any other form of preparation of 

24 a garment described in clause (i) by any 


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1 person contracting for such preparation; 

2 and 

3 ‘‘(v) any other operation or practice 

4 as may be identified in regulations issued 

5 by the Secretary consistent with the pur6 poses of this section. 

7 ‘‘(B) EXCLUSIONS.—The term ‘garment 

8 manufacturing’ does not include— 

9 ‘‘(i) manufacturing of garments by an 

10 individual who manufactures the garments 

11 by his or her self without the assistance of 

12 a garment contractor, employee, or any 

13 other individual; 

14 ‘‘(ii) cleaning, altering, or tailoring 

15 any garment , including a section or com16 ponent of a garment, after the garment 

17 has been sold at retail; or 

18 ‘‘(iii) any other form of manufac19 turing as may be identified in regulations 

20 issued by the Secretary consistent with the 

21 purposes of this section.’’. 

22 (2) in section 15 (29 U.S.C. 215(a))— 

23 (A) in subsection (a)— 

24 (i) in paragraph (5), by striking 

25 ‘‘and’’; 


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1 (ii) in paragraph (6), by striking the 

2 period at the end and inserting ‘‘; and’’; 

3 and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(7) to violate section 8.’’; and 

7 (B) by adding at the end the following new 

8 subsection: 

9 ‘‘(c) For the purposes of subsection (a)(7), it shall 

10 be an affirmative defense to an action under such sub11 section against a brand guarantor (as defined in section 

12 8(f)) if such brand guarantor shows no knowledge of the 

13 violation of section 8 alleged in such action.’’; and 

14 (3) in section 16 (29 U.S.C. 216)— 

15 (A) in subsection (b)— 

16 (i) by inserting after the third sen17 tence the following: ‘‘Any person who vio18 lates section 8 shall be liable for such legal 

19 or equitable relief as may be appropriate to 

20 effectuate the purposes of such section, in21 cluding the payment of wages lost and an 

22 additional equal amount as liquidated dam23 ages.’’; and 


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1 (ii) in the last sentence, by striking 

2 ‘‘15(a)(3)’’ and inserting ‘‘8, 15(a)(3),’’; 

3 and 

4 (B) in subsection (c), by adding at the end 

5 the following: ‘‘The authority and requirements 

6 described in this subsection shall apply with re7 spect to a violation of section 8, as appropriate, 

8 and the person in such violation shall be liable 

9 for such legal or equitable relief as may be ap10 propriate to effectuate the purposes of such sec11 tion, including the payment of wages lost and 

12 an additional equal amount as liquidated dam13 ages.’’. 

14 (b) CONFORMING AMENDMENT.—Section 10 of the 

15 Fair Labor Standards Act of 1938 (29 U.S.C. 210) is re16 pealed. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect on the date that is 6 months 

19 after the date of enactment of this Act. 

20 SEC. 3. REGISTRATION OF GARMENT MANUFACTURERS 

21 AND CONTRACTORS. 

22 (a) DEFINITIONS.—In this section: 

23 (1) EMPLOYEE.—The term ‘‘employee’’ has the 

24 meaning given the term in section 3 of the Fair 

25 Labor Standards Act of 1938 (29 U.S.C. 203). 


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1 (2) GARMENT CONTRACTOR; GARMENT INDUS2 TRY; GARMENT MANUFACTURER; GARMENT MANU3 FACTURING.—The terms ‘‘garment contractor’’, 

4 ‘‘garment industry’’, ‘‘garment manufacturer’’, and 

5 ‘‘garment manufacturing’’ have the meanings given 

6 such terms in section 8(f) of the Fair Labor Stand7 ards Act of 1938 (29 U.S.C. 208(f)). 

8 (3) PRODUCTION EMPLOYEE.—The term ‘‘pro9 duction employee’’, with respect to a garment manu10 facturer or garment contractor, means any employee 

11 of the manufacturer or contractor who is engaged in 

12 the garment industry. 

13 (4) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Labor, acting through the Under15 secretary of the Garment Industry appointed under 

16 section 4(b). 

17 (b) REQUIREMENT TO REGISTER WITH THE DE18 PARTMENT OF LABOR.—Beginning on the date that is 6 

19 months after the date of enactment of this Act, no gar20 ment manufacturer or garment contractor shall engage in 

21 the garment industry during any year unless the manufac22 turer or contractor has registered for such year with the 

23 Secretary in accordance with this section. 

24 (c) REGISTRATION REQUIREMENTS.— 


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1 (1) IN GENERAL.—A garment manufacturer or 

2 garment contractor registering under this section 

3 shall submit to the Secretary— 

4 (A) a form, in writing, containing the in5 formation described in paragraph (2); 

6 (B) photographic verification of the iden7 tify of— 

8 (i) each owner or partner of the gar9 ment manufacturer or garment contractor; 

10 and 

11 (ii) in the case the garment manufac12 turer or garment contractor is a corpora13 tion, each officer of the corporation; 

14 (C) verification that the garment manufac15 turer or garment contractor has in effect a 

16 workers’ compensation insurance policy for all 

17 production employees of the manufacturer or 

18 contractor; and 

19 (D) payment of the applicable registration 

20 fee described in paragraph (3). 

21 (2) INFORMATION IN FORM.—The information 

22 described in this paragraph is each of the following: 

23 (A) A statement of whether the garment 

24 manufacturer or garment contractor is a sole 

25 proprietorship, partnership, or corporation. 


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1 (B) The name, residential address, and 

2 phone number of all production employees of 

3 the garment manufacturer or garment con4 tractor. 

5 (C) The name, residential address, phone 

6 number, and social security number of— 

7 (i) each owner or partner of the gar8 ment manufacturer or garment contractor; 

9 (ii) if applicable, each officer of the 

10 garment manufacturer or garment con11 tractor; and 

12 (iii) if applicable, each of the 10 larg13 est shareholders of the garment manufac14 turer or garment contractor. 

15 (D) The name, residential address, and so16 cial security number of each person with a fi17 nancial interest in the business of the garment 

18 manufacturer in the garment industry, and the 

19 amount of that interest (if any). 

20 (E) In the case in which the garment man21 ufacturer or garment contractor is a corpora22 tion, a statement ensuring that no shares of the 

23 corporation are listed on a national securities 

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1 counter market by one or more members of a 

2 national or an affiliated securities association. 

3 (F) A statement of how long the garment 

4 manufacturer or garment contractor has been 

5 in business in the garment industry. 

6 (G) If applicable, the tax identification 

7 number of the garment manufacturer or gar8 ment contractor. 

9 (H) A statement of the status of the gar10 ment manufacturer or garment contractor as a 

11 manufacturer or contractor. 

12 (I) A statement of whether the garment 

13 manufacturer or garment contractor has con14 tracted with a labor organization, and, if so, the 

15 name and address of such labor organization. 

16 (J)(i) A statement as to whether, within 

17 the preceding 3-year period, any of the fol18 lowing persons or entities have been found by a 

19 court or the Secretary to have violated the Fair 

20 Labor Standards Act of 1938 (29 U.S.C. 201 

21 et seq.): 

22 (I) The garment manufacturer or gar23 ment contractor. 


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1 (II) Any owner of or any partner of 

2 the garment manufacturer or garment con3 tractor. 

4 (III) In the case the garment manu5 facturer or garment contractor is a cor6 poration, any officer of the corporation or 

7 any of the 10 largest shareholders of the 

8 corporation. 

9 (ii) If any person or entity described in 

10 any of subclauses (I) through (III) of clause (i) 

11 has violated the Fair Labor Standards Act of 

12 1938 within the period described in such clause, 

13 a statement of the nature of such violation and 

14 the date on which such violation occurred. 

15 (K) In the case of a contractor, a state16 ment of whether the contractor has subcon17 tracted for the cutting, sewing, dying, or assem18 bling of textiles or apparel or sections or com19 ponents of apparel. 

20 (3) REGISTRATION FEE.— 

21 (A) IN GENERAL.—The registration fee re22 quired under this subsection for each year shall 

23 be not less than $200. 

24 (B) PRO RATED FEES.—The Secretary 

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1 graph (A) for any registration described in sub2 section (d)(2)(B)(i). 

3 (C) USE.—The Secretary shall use the 

4 total amount of each registration fee required 

5 under this subsection for carrying out this sec6 tion. 

7 (d) SUBMISSION.— 

8 (1) CONSOLIDATION.—Each division, subsidiary 

9 corporation, or related company of a garment manu10 facturer or garment contractor may, at the option of 

11 the manufacturer or contractor, be named and in12 cluded under 1 registration under this section. 

13 (2) TIMING.— 

14 (A) IN GENERAL.—Except as provided 

15 under subparagraph (B), each registration sub16 mitted under this section shall be filed not later 

17 than the date that is 6 months after the date 

18 of enactment of this Act and annually there19 after on a date determined by the Secretary. 

20 (B) NEW MANUFACTURERS OR CONTRAC21 TORS.—In the case of a garment manufacturer 

22 or garment contractor that begins garment 

23 manufacturing operations or enters into a con24 tract for such operations for the first time after 

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1 tion required under this section shall be sub2 mitted— 

3 (i) not later than 6 months after the 

4 date on which the garment manufacturing 

5 operations begin or the contractor enters 

6 into the contract for such operations; and 

7 (ii) annually thereafter on a date de8 termined by the Secretary. 

9 (e) CERTIFICATES.— 

10 (1) IN GENERAL.—The Secretary shall issue a 

11 certificate of registration to each garment manufac12 turer or garment contractor that submits a registra13 tion meeting the requirements under this section. 

14 (2) APPLICABILITY.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), each certificate issued under 

17 paragraph (1) shall be effective for a period of 

18 12 months. 

19 (B) NEW MANUFACTURERS OR CONTRAC20 TORS.—A certificate with respect to a registra21 tion submitted under subsection (d)(2)(B)(i) 

22 shall be effective until the following registration 

23 date as determined by the Secretary. 

24 (3) POSTING.—Each garment manufacturer or 

25 garment contractor receiving a certificate under 


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1 paragraph (1) shall post such certificate in a place 

2 where it may be read by any employee of the manu3 facturer or contractor during the workday. 

4 (4) SUSPENSION OR REVOCATION.—The Sec5 retary may suspend or revoke a certificate of reg6 istration issued under paragraph (1) if the garment 

7 manufacturer or garment contractor that submitted 

8 the registration— 

9 (A) has knowingly made any misrepresen10 tation in the application for such certificate; or 

11 (B) has failed to comply with this Act or 

12 any regulation under this Act. 

13 (f) RECORDKEEPING.—The Secretary shall, through 

14 regulations, establish requirements for recordkeeping for 

15 all garment manufacturers and garment contractors en16 gaging in the garment industry in order to assist in en17 forcing the requirements of this section. 

18 (g) ENFORCEMENT.— 

19 (1) IN GENERAL.—The Secretary may impose a 

20 civil money penalty of not more than $50,000,000 

21 against any person who violates a requirement under 

22 this section. 

23 (2) CONSIDERATIONS.—In assessing the 

24 amount of a penalty under this subsection, the Sec25 retary shall give consideration to— 


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1 (A) the size of the business of the person; 

2 (B) whether the violation of the person 

3 was committed in good faith; 

4 (C) the gravity of the violation; 

5 (D) the history of any previous violations 

6 of the person under this section; and 

7 (E) the history of the person in complying 

8 with the recordkeeping requirements under sub9 section (f). 

10 (h) REGULATIONS.—The Secretary may prescribe 

11 such regulations or other guidance as may be necessary 

12 to carry out this section. 

13 SEC. 4. UNDERSECRETARY OF THE GARMENT INDUSTRY. 

14 (a) IN GENERAL.—There is established in the De15 partment of Labor the Office of the Garment Industry (re16 ferred to in this section as the ‘‘Office’’). 

17 (b) UNDERSECRETARY.— 

18 (1) IN GENERAL.—The Secretary of Labor shall 

19 appoint an Undersecretary of the Garment Industry 

20 (referred to in this section as the ‘‘Undersecretary’’) 

21 to head the Office. 

22 (2) FUNCTIONS.—The Undersecretary shall— 

23 (A) carry out section 3 using sums appro24 priated under subsection (c); 


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1 (B) carry out the national domestic gar2 ment manufacturing support program under 

3 section 5; and 

4 (C) provide assistance to the Administrator 

5 of the Wage and Hour Division in enforcing 

6 section 8 of the Fair Labor Standards Act of 

7 1938 (29 U.S.C. 208). 

8 (c) AUTHORIZATION OF APPROPRIATIONS.— 

9 (1) IN GENERAL.—There are authorized to be 

10 appropriated to the Secretary of the Labor— 

11 (A) $10,000,000 for fiscal year 2022, to 

12 establish the Office and carry out the functions 

13 described in subparagraphs (A) and (C) of sub14 section (b)(2); and 

15 (B) $3,000,000 for each of fiscal years 

16 2023 through 2027, to carry out the functions 

17 described in subparagraphs (A) and (C) of sub18 section (b)(2). 

19 (2) AVAILABILITY.—Any sums appropriated 

20 under the authorization contained in this subsection 

21 shall remain available, without fiscal year limitation, 

22 until expended. 

23 SEC. 5. NATIONAL DOMESTIC GARMENT MANUFACTURING 

24 SUPPORT PROGRAM. 

25 (a) DEFINITIONS.—In this section: 


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1 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti2 ty’’ means an entity that is— 

3 (A) a garment manufacturer that is incor4 porated in and performs garment manufac5 turing within the United States; or 

6 (B) a nonprofit organization that provides 

7 workforce development opportunities with re8 spect to the garment industry. 

9 (2) GARMENT INDUSTRY; GARMENT MANUFAC10 TURER; GARMENT MANUFACTURING.—The terms 

11 ‘‘garment industry’’, ‘‘garment manufacturer’’, and 

12 ‘‘garment manufacturing’’ have the meanings given 

13 such terms in section 8(f) of the Fair Labor Stand14 ards Act of 1938 (29 U.S.C. 208(f)). 

15 (3) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Labor, acting through the Under17 secretary of the Garment Industry appointed under 

18 section 4(b). 

19 (b) IN GENERAL.—From amounts made available 

20 under subsections (f)(2) and (h), the Secretary shall 

21 award grants, on a competitive basis, to eligible entities 

22 to support garment manufacturing in the United States. 

23 (c) APPLICATION.—An eligible entity seeking a grant 

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1 cation at such time, in such manner, and containing such 

2 information as the Secretary may require, including— 

3 (1) a description of the project that the eligible 

4 entity proposes to carry out using such grant; and 

5 (2) an implementation plan of such project that 

6 reflects the expected participation of, and partner7 ship with, applicable labor organizations and rel8 evant community stakeholders. 

9 (d) AWARD.— 

10 (1) SELECTION.—In awarding grants under 

11 this section to eligible entities, the Secretary shall 

12 give priority to eligible entities— 

13 (A) with a workforce that is covered by a 

14 collective bargaining agreement; 

15 (B) that are certified by a State in which 

16 such eligible entity operates as a minority17 owned businesses, women-owned businesses, or 

18 veteran-owned businesses; or 

19 (C) who have operated as a garment man20 ufacturer within the United States for more 

21 than 5 years. 

22 (2) AMOUNT.—The amount of a grant awarded 

23 under this section may not be more than 

24 $5,000,000. 


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1 (e) USE OF FUNDS.—An eligible entity receiving a 

2 grant under this section shall use the grant funds to sup3 port— 

4 (1) investments in training and workforce devel5 opment for employees within the garment industry; 

6 (2) the acquisition of relevant tools and equip7 ment for garment manufacturing in the United 

8 States; 

9 (3) the acquisition of, and capital improvements 

10 to, facilities for garment manufacturing in the 

11 United States and to promote the health and safety 

12 of employees in such facilities; or 

13 (4) efforts to assist in educating employees 

14 about rights under this Act and other relevant Fed15 eral, State, or local laws. 

16 (f) RETURN OF FUNDS.— 

17 (1) IN GENERAL.—An eligible entity receiving a 

18 grant under this section shall return any unused 

19 amount of such grant (in part or in full, as required 

20 by the Secretary) if the Secretary determines the eli21 gible entity violated any provision of this Act, includ22 ing any amendment made by this Act. 

23 (2) USE OF RETURNED FUNDS.—Amounts re24 turned under paragraph (1) shall be made available 

25 for grant awards under subsection (b). 


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1 (g) REPORT.—Not later than 6 months after the date 

2 on which an eligible entity receives a grant under this sec3 tion, the eligible entity shall submit to the Secretary a re4 port that includes an account of the use of grant funds 

5 awarded under this section. 

6 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated $50,000,000 to carry out 

8 this section. 

Æ 


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