In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE AND REFERENCE.

(a) Short Title.--This Act may be cited as the ''Stop Sweatshops
Act of 1996''.
(b) Reference.--Whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Fair Labor Standards Act of 1938.

SEC. 2. FINDINGS.

The Congress makes the following findings:
(1) The production of garments in violation of minimum
labor standards burdens commerce and the free flow of goods in
commerce by spreading and perpetuating labor conditions that
undermine minimum living standards and by providing an unfair
means of competition to the detriment of employers who comply
with the law.
(2) The existence of working conditions detrimental to fair
competition and the maintenance of minimum standards of living
necessary for health, efficiency, and general well-being of
workers are a continuing and growing problem in the domestic
garment industry.
(3) The Congress concurs in the findings of the Comptroller
General that most sweatshop employers violate the recordkeeping
requirements of the Fair Labor Standards Act of 1938 and that
the failure of such employers to maintain adequate records has
and continues to adversely affect the ability of the Department
of Labor to collect wages due to workers.
(4) The amendment of the Fair Labor Standards Act of 1938
to provide for legal responsibility on the part of
manufacturers for compliance with such Act's wage and hour,
child labor, and industrial homework provisions by contractors
in the garment industry and to provide civil penalties for
violations of that Act's recordkeeping requirements is
necessary to promote fair competition and working conditions
that are not detrimental to the maintenance of health,
efficiency, and general well-being of workers in the garment
industry.

SEC. 3. LEGAL RESPONSIBILITY FOR COMPLIANCE WITH WAGE AND HOUR
PROVISIONS IN THE GARMENT INDUSTRY.

(a) Amendment.--The Fair Labor Standards Act of 1938 is amended by
adding after section 14 the following:

''legal responsibility for compliance in the garment industry with
sections 6 and 7

''Sec. 14A. (a) Every manufacturer engaged in the garment industry
who contracts to have garment manufacturing operations performed by
another person as a contractor--
''(1) shall be civilly liable, with respect to those
garment manufacturing operations, to the same extent as the
contractor for any violation by the contractor of section 6
(except for violations of subsection (d)) or 7, for any
violation by the contractor of the provisions of section 11
regulating, restricting, or prohibiting industrial homework,
and for violation by the contractor of section 12; and
''(2) shall be subject to the same civil penalties assessed
against the contractor for violations of such sections.
''(b) For purposes of this section:
''(1) The term 'garment industry' means the designing,
cutting, sewing, dyeing, washing, finishing, assembling,
pressing, or otherwise producing men's, women's, children's, or
infants' apparel, including clothing, knit goods, hats, gloves,
handbags, hosiery, ties, scarves, and belts, or a section or
component of apparel, except for pre-manufactured items such as
buttons, zippers, snaps, and studs, designed or intended to be
worn by any individual which is to be sold or offered for sale.
''(2) The term 'manufacturer' means any person who (A)
contracts, directly or indirectly through an intermediary or
otherwise, with a contractor to perform the cutting, sewing,
dyeing, washing, finishing, assembling, pressing, or otherwise
producing any men's, women's, children's, or infants' apparel,
including clothing, knit goods, hats, gloves, handbags,
hosiery, ties, scarves, and belts, or a section or component of
apparel, except for pre-manufactured items such as buttons,
zippers, snaps, and studs, designed or intended to be worn by
any individual which is to be sold or offered for sale,
including a retailer engaged in such activities, or (B)
designs, cuts, sews, dyes, washes, finishes, assembles,
presses, or otherwise produces or is responsible for the
production of any men's, women's, children's, or infants'
apparel, including clothing, knit goods, hats, gloves,
handbags, hosiery, ties, scarves, and belts, or a section or
component of apparel, except for pre-manufactured items such as
buttons, zippers, snaps, and studs, designed or intended to be
worn by any individual which is to be sold or offered for sale.
''(3) The term 'contractor' means any person who contracts,
directly or indirectly through an intermediary or otherwise,
with a manufacturer to perform the cutting, sewing, dyeing,
washing, finishing, assembling, pressing, or otherwise
producing any men's, women's, children's, or infants' apparel,
including clothing, knit goods, hats, gloves, handbags,
hosiery, ties, scarves, and belts, or a section or component of
apparel, except for pre-manufactured items such as buttons,
zippers, snaps, and studs, designed or intended to be worn by
any individual which is to be sold or offered for sale.
''(4) The term 'retailer' means any person engaged in the
sale of apparel to the ultimate consumer for personal use.''.
(b) Liability to Employees.--Section 16 (29 U.S.C. 216) is
amended--
(1) in subsection (b), by adding after the first sentence
the following: ''A manufacturer in the garment industry (as
defined in section 14A(b)(2)) shall also be jointly and
severally liable to such an employee to the same extent as the
contractor in the garment industry (as defined in section
14A(b)(3)) who employed such employee if the contractor
violated section 6 (other than subsection (d)) or 7 in the
production of apparel or components of apparel for such
manufacturer.'';
(2) in subsection (b), by inserting in the last sentence
''or by a manufacturer in the garment industry'' after ''by an
employer''; and
(3) in subsection (c)--
(A) by striking ''first sentence'' and inserting
''first or second sentences''; and
(B) by inserting ''or by a manufacturer in the
garment industry'' after ''liable''

SEC. 4. RECORDKEEPING.

Section 16(e) (29 U.S.C. 216(e)) is amended by adding after the
first sentence the following: ''Any person who fails to establish,
maintain, and preserve payroll records as required under section 11(c)
shall be subject to a civil penalty of not to exceed $1000 for each
employee who was the subject of such a violation. The Secretary may, in
the Secretary's discretion, compute civil penalties under this
subsection for each pay period for willful violations. Any person who
submits fraudulent payroll records to the agencies enforcing this Act
in any of its investigations or hearings or as evidence in a court
action, which records conceal the actual hours of labor worked by
employees or the violation of section 6, 7, 11(d), or 12 shall be
subject to a civil penalty of $10,000 per act of fraud and $15,000 per
act of fraud for a second offense.

SEC. 5. EFFECTIVE DATE.

The amendments made by this Act shall take effect upon the
expiration of 30 days from the date of its enactment.
Stop Sweatshops Act of 1996 - Amends the Fair Labor Standards Act of 1938 to provide for the civil liability of manufacturers for sweatshop conditions in the garment industry. Sets forth civil penalties for violation of recordkeeping and payroll accounting requirements.