FABRIC Act

The FABRIC Act amends the Fair Labor Standards Act to prohibit piece-rate pay for garment industry workers, requiring employers to pay them at least the federal minimum wage on an hourly basis while still allowing for incentive bonuses. The bill establishes joint and several liability for brand guarantors, meaning companies that contract for garment manufacturing can be held financially responsible for wage violations committed by their contractors or subcontractors. To improve oversight, the legislation mandates that all garment manufacturers and contractors register annually with the Department of Labor, providing detailed information about ownership, employees, and past legal violations. Additionally, the bill creates a new Office 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.