FABRIC Act

The FABRIC Act amends the Fair Labor Standards Act to prohibit piece-rate pay for garment industry workers, requiring employers to pay at least the federal minimum hourly wage while still allowing incentive bonuses. It introduces joint and several liability for brand guarantors, making them financially responsible for labor law violations committed by their contractors or subcontractors, with an affirmative defense available if the brand can prove it had no knowledge of the violation. To enhance oversight, the bill mandates that garment manufacturers and contractors register annually with the Department of Labor, providing detailed information about ownership and employee history in exchange for a certificate that must be posted on-site. The legislation also establishes a new Undersecretary of the Garment Industry within the Department of Labor and authorizes $100 million in competitive grants to support domestic manufacturing, workforce development, and facility improvements.