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 indus-
try by piece rate, to require manufacturers and contrac-
tors in the garment industry to register with the Depart-
ment of Labor, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fashioning Account-
ability and Building Real Institutional Change Act’’ or the 
‘‘FABRIC Act’’. 
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SEC. 2. PAYMENT AND LIABILITY REQUIREMENTS IN THE 
GARMENT INDUSTRY. 
(a) IN GENERAL.—The Fair Labor Standards Act of 
1938 (29 U.S.C. 201 et seq.) is amended— 
(1) by inserting after section 7 (29 U.S.C. 207) 
the following: 
‘‘SEC. 8. REQUIREMENTS FOR THE GARMENT INDUSTRY. 
‘‘(a) PROHIBITION AGAINST PAYMENT
BY PIECE 
RATE.—No employer shall pay an employee employed in 
the garment industry, who in any workweek is engaged 
in commerce or in the production of goods for commerce, 
or is employed in an enterprise engaged in commerce or 
in the production of goods for commerce, by the piece or 
unit, or by piece rate. 
‘‘(b) HOURLY RATES.— 
‘‘(1) IN GENERAL.—An employer shall pay each 
employee employed in the garment industry, who in 
any workweek is engaged in commerce or in the pro-
duction of goods for commerce, or is employed in an 
enterprise engaged in commerce or in the production 
of goods for commerce, at an hourly rate that is not 
less than the rate in effect under section 6(a)(1). 
‘‘(2) INCENTIVE
BONUSES.—Nothing in this 
section shall be construed to prohibit incentive-based 
bonuses for employees employed in the garment in-
dustry. 
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‘‘(c) JOINT
AND SEVERAL LIABILITY
OF BRAND 
GUARANTORS.— 
‘‘(1) IN
GENERAL.—A brand guarantor who 
contracts with an employer of an employee described 
in paragraph (2) for the performance of services in 
the garment industry shall share joint and several li-
ability with such employer for any violations of the 
employer under this Act involving such employee 
while the employee is performing work with respect 
to such brand guarantor. 
‘‘(2) EMPLOYEES.—An employee described in 
this paragraph is any employee employed in the gar-
ment industry who in any workweek is engaged in 
commerce or in the production of goods for com-
merce, or is employed in an enterprise engaged in 
commerce or in the production of goods for com-
merce. 
‘‘(3) SUBCONTRACTS.—For purposes of para-
graph (1), an employer of an employee described in 
paragraph (2) includes any other person who, 
through 1 or more subcontracts, subcontracts with 
the employer of such an employee for the perform-
ance of services in the garment industry. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to preclude a de-
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termination of joint employment, in the garment in-
dustry or otherwise, for entities other than brand 
guarantors. 
‘‘(d) NONAPPLICABILITY.—Subsections (a) and (b) 
shall not apply for purposes of an employee employed in 
the garment industry who is covered by a bona fide collec-
tive bargaining agreement that expressly provides for— 
‘‘(1) wages, hours of work, and working condi-
tions of the employee; 
‘‘(2)(A) a wage rate for all hours worked by the 
employee in excess of 40 hours in a week that is 
greater than one and one-half times the regular rate 
at which such employee is employed; and 
‘‘(B) a minimum hourly rate of pay for the em-
ployee that is not less than 10 percent more than 
the higher of— 
‘‘(i) the minimum wage rate under an ap-
plicable State law; or 
‘‘(ii) the minimum wage rate in effect 
under section 6(a)(1); and 
‘‘(3) a process to resolve disputes concerning 
nonpayment of wages. 
‘‘(e) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
to carry out this section. 
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‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) BRAND
GUARANTOR.—The term ‘brand 
guarantor’ means any person contracting for the 
performance of garment manufacturing, including 
through licensing of a brand or name, regardless of 
whether the party with whom the person contracts 
performs the manufacturing operations or hires gar-
ment contractors to perform the manufacturing op-
erations. 
‘‘(2) GARMENT.—The term ‘garment’ includes 
any article of wearing apparel or accessory designed 
or intended to be worn by an individual, including 
clothing, hats, gloves, handbags, hosiery, ties, scarfs, 
and belts. 
‘‘(3) GARMENT CONTRACTOR.—The term ‘gar-
ment contractor’— 
‘‘(A) means any person who, with the as-
sistance of an employee or any other individual, 
is primarily engaged in garment manufacturing 
for another person, including for another gar-
ment contractor, a garment manufacturer, or a 
brand guarantor; and 
‘‘(B) includes a subcontractor that is pri-
marily engaged in garment manufacturing. 
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‘‘(4) GARMENT INDUSTRY.—The term ‘garment 
industry’ means the industry of garment manufac-
turing. 
‘‘(5) GARMENT
MANUFACTURER.—The term 
‘garment manufacturer’ means any person who is 
engaged in garment manufacturing who is not a gar-
ment contractor. 
‘‘(6) GARMENT MANUFACTURING.— 
‘‘(A) IN
GENERAL.—The term ‘garment 
manufacturing’ means— 
‘‘(i) sewing, cutting, making, proc-
essing, repairing, finishing, assembling, 
pressing, or dyeing a garment, including a 
section or component of a garment, de-
signed for or intended to be worn by an in-
dividual, which is to be sold or offered for 
sale or resale; 
‘‘(ii) altering the design, or causing 
another person to alter the design, of a 
garment described in clause (i): 
‘‘(iii) affixing a label to a garment de-
scribed in clause (i); 
‘‘(iv) any other form of preparation of 
a garment described in clause (i) by any 
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person contracting for such preparation; 
and 
‘‘(v) any other operation or practice 
as may be identified in regulations issued 
by the Secretary consistent with the pur-
poses of this section. 
‘‘(B) EXCLUSIONS.—The term ‘garment 
manufacturing’ does not include— 
‘‘(i) manufacturing of garments by an 
individual who manufactures the garments 
by his or her self without the assistance of 
a garment contractor, employee, or any 
other individual; 
‘‘(ii) cleaning, altering, or tailoring 
any garment , including a section or com-
ponent of a garment, after the garment 
has been sold at retail; or 
‘‘(iii) any other form of manufac-
turing as may be identified in regulations 
issued by the Secretary consistent with the 
purposes of this section.’’. 
(2) in section 15 (29 U.S.C. 215(a))— 
(A) in subsection (a)— 
(i) in paragraph (5), by striking 
‘‘and’’; 
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(ii) in paragraph (6), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(7) to violate section 8.’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(c) For the purposes of subsection (a)(7), it shall 
be an affirmative defense to an action under such sub-
section against a brand guarantor (as defined in section 
8(f)) if such brand guarantor shows no knowledge of the 
violation of section 8 alleged in such action.’’; and 
(3) in section 16 (29 U.S.C. 216)— 
(A) in subsection (b)— 
(i) by inserting after the third sen-
tence the following: ‘‘Any person who vio-
lates section 8 shall be liable for such legal 
or equitable relief as may be appropriate to 
effectuate the purposes of such section, in-
cluding the payment of wages lost and an 
additional equal amount as liquidated dam-
ages.’’; and 
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(ii) in the last sentence, by striking 
‘‘15(a)(3)’’ and inserting ‘‘8, 15(a)(3),’’; 
and 
(B) in subsection (c), by adding at the end 
the following: ‘‘The authority and requirements 
described in this subsection shall apply with re-
spect to a violation of section 8, as appropriate, 
and the person in such violation shall be liable 
for such legal or equitable relief as may be ap-
propriate to effectuate the purposes of such sec-
tion, including the payment of wages lost and 
an additional equal amount as liquidated dam-
ages.’’. 
(b) CONFORMING AMENDMENT.—Section 10 of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 210) is re-
pealed. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date that is 6 months 
after the date of enactment of this Act. 
SEC. 3. REGISTRATION OF GARMENT MANUFACTURERS 
AND CONTRACTORS. 
(a) DEFINITIONS.—In this section: 
(1) EMPLOYEE.—The term ‘‘employee’’ has the 
meaning given the term in section 3 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203). 
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(2) GARMENT CONTRACTOR; GARMENT INDUS-
TRY; GARMENT
MANUFACTURER; GARMENT
MANU-
FACTURING.—The 
terms 
‘‘garment 
contractor’’, 
‘‘garment industry’’, ‘‘garment manufacturer’’, and 
‘‘garment manufacturing’’ have the meanings given 
such terms in section 8(f) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 208(f)). 
(3) PRODUCTION EMPLOYEE.—The term ‘‘pro-
duction employee’’, with respect to a garment manu-
facturer or garment contractor, means any employee 
of the manufacturer or contractor who is engaged in 
the garment industry. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor, acting through the Under-
secretary of the Garment Industry appointed under 
section 4(b). 
(b) REQUIREMENT TO REGISTER WITH THE DE-
PARTMENT OF LABOR.—Beginning on the date that is 6 
months after the date of enactment of this Act, no gar-
ment manufacturer or garment contractor shall engage in 
the garment industry during any year unless the manufac-
turer or contractor has registered for such year with the 
Secretary in accordance with this section. 
(c) REGISTRATION REQUIREMENTS.— 
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(1) IN GENERAL.—A garment manufacturer or 
garment contractor registering under this section 
shall submit to the Secretary— 
(A) a form, in writing, containing the in-
formation described in paragraph (2); 
(B) photographic verification of the iden-
tify of— 
(i) each owner or partner of the gar-
ment manufacturer or garment contractor; 
and 
(ii) in the case the garment manufac-
turer or garment contractor is a corpora-
tion, each officer of the corporation; 
(C) verification that the garment manufac-
turer or garment contractor has in effect a 
workers’ compensation insurance policy for all 
production employees of the manufacturer or 
contractor; and 
(D) payment of the applicable registration 
fee described in paragraph (3). 
(2) INFORMATION IN FORM.—The information 
described in this paragraph is each of the following: 
(A) A statement of whether the garment 
manufacturer or garment contractor is a sole 
proprietorship, partnership, or corporation. 
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(B) The name, residential address, and 
phone number of all production employees of 
the garment manufacturer or garment con-
tractor. 
(C) The name, residential address, phone 
number, and social security number of— 
(i) each owner or partner of the gar-
ment manufacturer or garment contractor; 
(ii) if applicable, each officer of the 
garment manufacturer or garment con-
tractor; and 
(iii) if applicable, each of the 10 larg-
est shareholders of the garment manufac-
turer or garment contractor. 
(D) The name, residential address, and so-
cial security number of each person with a fi-
nancial interest in the business of the garment 
manufacturer in the garment industry, and the 
amount of that interest (if any). 
(E) In the case in which the garment man-
ufacturer or garment contractor is a corpora-
tion, a statement ensuring that no shares of the 
corporation are listed on a national securities 
exchange or regularly quoted in an over-the- 
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counter market by one or more members of a 
national or an affiliated securities association. 
(F) A statement of how long the garment 
manufacturer or garment contractor has been 
in business in the garment industry. 
(G) If applicable, the tax identification 
number of the garment manufacturer or gar-
ment contractor. 
(H) A statement of the status of the gar-
ment manufacturer or garment contractor as a 
manufacturer or contractor. 
(I) A statement of whether the garment 
manufacturer or garment contractor has con-
tracted with a labor organization, and, if so, the 
name and address of such labor organization. 
(J)(i) A statement as to whether, within 
the preceding 3-year period, any of the fol-
lowing persons or entities have been found by a 
court or the Secretary to have violated the Fair 
Labor Standards Act of 1938 (29 U.S.C. 201 
et seq.): 
(I) The garment manufacturer or gar-
ment contractor. 
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(II) Any owner of or any partner of 
the garment manufacturer or garment con-
tractor. 
(III) In the case the garment manu-
facturer or garment contractor is a cor-
poration, any officer of the corporation or 
any of the 10 largest shareholders of the 
corporation. 
(ii) If any person or entity described in 
any of subclauses (I) through (III) of clause (i) 
has violated the Fair Labor Standards Act of 
1938 within the period described in such clause, 
a statement of the nature of such violation and 
the date on which such violation occurred. 
(K) In the case of a contractor, a state-
ment of whether the contractor has subcon-
tracted for the cutting, sewing, dying, or assem-
bling of textiles or apparel or sections or com-
ponents of apparel. 
(3) REGISTRATION FEE.— 
(A) IN GENERAL.—The registration fee re-
quired under this subsection for each year shall 
be not less than $200. 
(B) PRO
RATED
FEES.—The Secretary 
may prorate the registration fee under subpara-
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graph (A) for any registration described in sub-
section (d)(2)(B)(i). 
(C) USE.—The Secretary shall use the 
total amount of each registration fee required 
under this subsection for carrying out this sec-
tion. 
(d) SUBMISSION.— 
(1) CONSOLIDATION.—Each division, subsidiary 
corporation, or related company of a garment manu-
facturer or garment contractor may, at the option of 
the manufacturer or contractor, be named and in-
cluded under 1 registration under this section. 
(2) TIMING.— 
(A) IN
GENERAL.—Except as provided 
under subparagraph (B), each registration sub-
mitted under this section shall be filed not later 
than the date that is 6 months after the date 
of enactment of this Act and annually there-
after on a date determined by the Secretary. 
(B) NEW MANUFACTURERS OR CONTRAC-
TORS.—In the case of a garment manufacturer 
or garment contractor that begins garment 
manufacturing operations or enters into a con-
tract for such operations for the first time after 
the date of enactment of this Act, the registra-
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tion required under this section shall be sub-
mitted— 
(i) not later than 6 months after the 
date on which the garment manufacturing 
operations begin or the contractor enters 
into the contract for such operations; and 
(ii) annually thereafter on a date de-
termined by the Secretary. 
(e) CERTIFICATES.— 
(1) IN GENERAL.—The Secretary shall issue a 
certificate of registration to each garment manufac-
turer or garment contractor that submits a registra-
tion meeting the requirements under this section. 
(2) APPLICABILITY.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), each certificate issued under 
paragraph (1) shall be effective for a period of 
12 months. 
(B) NEW MANUFACTURERS OR CONTRAC-
TORS.—A certificate with respect to a registra-
tion submitted under subsection (d)(2)(B)(i) 
shall be effective until the following registration 
date as determined by the Secretary. 
(3) POSTING.—Each garment manufacturer or 
garment contractor receiving a certificate under 
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paragraph (1) shall post such certificate in a place 
where it may be read by any employee of the manu-
facturer or contractor during the workday. 
(4) SUSPENSION
OR
REVOCATION.—The Sec-
retary may suspend or revoke a certificate of reg-
istration issued under paragraph (1) if the garment 
manufacturer or garment contractor that submitted 
the registration— 
(A) has knowingly made any misrepresen-
tation in the application for such certificate; or 
(B) has failed to comply with this Act or 
any regulation under this Act. 
(f) RECORDKEEPING.—The Secretary shall, through 
regulations, establish requirements for recordkeeping for 
all garment manufacturers and garment contractors en-
gaging in the garment industry in order to assist in en-
forcing the requirements of this section. 
(g) ENFORCEMENT.— 
(1) IN GENERAL.—The Secretary may impose a 
civil money penalty of not more than $50,000,000 
against any person who violates a requirement under 
this section. 
(2) 
CONSIDERATIONS.—In 
assessing 
the 
amount of a penalty under this subsection, the Sec-
retary shall give consideration to— 
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(A) the size of the business of the person; 
(B) whether the violation of the person 
was committed in good faith; 
(C) the gravity of the violation; 
(D) the history of any previous violations 
of the person under this section; and 
(E) the history of the person in complying 
with the recordkeeping requirements under sub-
section (f). 
(h) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
to carry out this section. 
SEC. 4. UNDERSECRETARY OF THE GARMENT INDUSTRY. 
(a) IN GENERAL.—There is established in the De-
partment of Labor the Office of the Garment Industry (re-
ferred to in this section as the ‘‘Office’’). 
(b) UNDERSECRETARY.— 
(1) IN GENERAL.—The Secretary of Labor shall 
appoint an Undersecretary of the Garment Industry 
(referred to in this section as the ‘‘Undersecretary’’) 
to head the Office. 
(2) FUNCTIONS.—The Undersecretary shall— 
(A) carry out section 3 using sums appro-
priated under subsection (c); 
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(B) carry out the national domestic gar-
ment manufacturing support program under 
section 5; and 
(C) provide assistance to the Administrator 
of the Wage and Hour Division in enforcing 
section 8 of the Fair Labor Standards Act of 
1938 (29 U.S.C. 208). 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Secretary of the Labor— 
(A) $10,000,000 for fiscal year 2022, to 
establish the Office and carry out the functions 
described in subparagraphs (A) and (C) of sub-
section (b)(2); and 
(B) $3,000,000 for each of fiscal years 
2023 through 2027, to carry out the functions 
described in subparagraphs (A) and (C) of sub-
section (b)(2). 
(2) AVAILABILITY.—Any sums appropriated 
under the authorization contained in this subsection 
shall remain available, without fiscal year limitation, 
until expended. 
SEC. 5. NATIONAL DOMESTIC GARMENT MANUFACTURING 
SUPPORT PROGRAM. 
(a) DEFINITIONS.—In this section: 
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(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means an entity that is— 
(A) a garment manufacturer that is incor-
porated in and performs garment manufac-
turing within the United States; or 
(B) a nonprofit organization that provides 
workforce development opportunities with re-
spect to the garment industry. 
(2) GARMENT INDUSTRY; GARMENT MANUFAC-
TURER; 
GARMENT
MANUFACTURING.—The terms 
‘‘garment industry’’, ‘‘garment manufacturer’’, and 
‘‘garment manufacturing’’ have the meanings given 
such terms in section 8(f) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 208(f)). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor, acting through the Under-
secretary of the Garment Industry appointed under 
section 4(b). 
(b) IN GENERAL.—From amounts made available 
under subsections (f)(2) and (h), the Secretary shall 
award grants, on a competitive basis, to eligible entities 
to support garment manufacturing in the United States. 
(c) APPLICATION.—An eligible entity seeking a grant 
under this section shall submit to the Secretary an appli-
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cation at such time, in such manner, and containing such 
information as the Secretary may require, including— 
(1) a description of the project that the eligible 
entity proposes to carry out using such grant; and 
(2) an implementation plan of such project that 
reflects the expected participation of, and partner-
ship with, applicable labor organizations and rel-
evant community stakeholders. 
(d) AWARD.— 
(1) SELECTION.—In awarding grants under 
this section to eligible entities, the Secretary shall 
give priority to eligible entities— 
(A) with a workforce that is covered by a 
collective bargaining agreement; 
(B) that are certified by a State in which 
such eligible entity operates as a minority- 
owned businesses, women-owned businesses, or 
veteran-owned businesses; or 
(C) who have operated as a garment man-
ufacturer within the United States for more 
than 5 years. 
(2) AMOUNT.—The amount of a grant awarded 
under 
this 
section 
may 
not 
be 
more 
than 
$5,000,000. 
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(e) USE OF FUNDS.—An eligible entity receiving a 
grant under this section shall use the grant funds to sup-
port— 
(1) investments in training and workforce devel-
opment for employees within the garment industry; 
(2) the acquisition of relevant tools and equip-
ment for garment manufacturing in the United 
States; 
(3) the acquisition of, and capital improvements 
to, facilities for garment manufacturing in the 
United States and to promote the health and safety 
of employees in such facilities; or 
(4) efforts to assist in educating employees 
about rights under this Act and other relevant Fed-
eral, State, or local laws. 
(f) RETURN OF FUNDS.— 
(1) IN GENERAL.—An eligible entity receiving a 
grant under this section shall return any unused 
amount of such grant (in part or in full, as required 
by the Secretary) if the Secretary determines the eli-
gible entity violated any provision of this Act, includ-
ing any amendment made by this Act. 
(2) USE OF RETURNED FUNDS.—Amounts re-
turned under paragraph (1) shall be made available 
for grant awards under subsection (b). 
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(g) REPORT.—Not later than 6 months after the date 
on which an eligible entity receives a grant under this sec-
tion, the eligible entity shall submit to the Secretary a re-
port that includes an account of the use of grant funds 
awarded under this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $50,000,000 to carry out 
this section. 
Æ 
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