PlainBillCongress, translated.Legislation. Context. Public interest.Congressional Research Service
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People & committees
Rep. Nadler, Jerrold [D-NY-12] · D–NY
Legislative record
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Referred to the House Committee on Education and Workforce.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Sep 29, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-09-14 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed FABRIC Act would require hourly pay for covered garment workers, with an exception for qualifying collective bargaining agreements, and make companies contracting for garment production share responsibility for certain labor-law violations. Garment manufacturers and contractors would have to register annually with the Department of Labor. The bill would also establish a garment-industry office and competitive grants to support U.S. garment production and workforce development.
This Act may be cited as the Fashioning Accountability and Building Real Institutional Change Act or the FABRIC Act.
An employer shall pay each 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, at an hourly rate that is not less than the rate in effect under section 6(a)(1).
Subsections (a) and (b) shall not apply for purposes of an employee employed in the garment industry who is covered by a bona fide collective bargaining agreement that expressly provides for—
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 liability 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.
no garment manufacturer or garment contractor shall engage in the garment industry during any year unless the manufacturer or contractor has registered for such year with the Secretary in accordance with this section.
There is established in the Department of Labor the Office of the Garment Industry
the Secretary shall award grants, on a competitive basis, to eligible entities to support garment manufacturing in the United States.
investments in training and workforce development for employees within the garment industry
The bill would prohibit pay based on the number of pieces or units produced for garment employees who meet the stated commerce-related coverage conditions. Employers would have to pay an hourly rate at least equal to the rate referenced in section 6(a)(1) of the Fair Labor Standards Act. Production-based incentive bonuses would remain permitted.
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.
at an hourly rate that is not less than the rate in effect under section 6(a)(1).
Nothing in this section shall be construed to prohibit incentive-based bonuses (including bonuses determined by the production of goods for commerce, by the piece or unit, or by piece rate) for employees employed in the garment industry.
A “brand guarantor” would include anyone contracting for garment manufacturing, including through brand or name licensing, even if the other contracting party hires someone else to manufacture the garments. For covered employees working on that guarantor's work, the guarantor and employer would share liability for the employer's Fair Labor Standards Act violations; either could be responsible for the full liability. The provision would reach subcontracting chains and preserve the possibility of finding other entities to be joint employers.
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 garment contractors to perform the manufacturing operations.
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 liability 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.
An employee described in this paragraph is any 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.
includes any other person who, through 1 or more subcontracts, subcontracts with the employer of such an employee for the performance of services in the garment industry.
Nothing in this subsection shall be construed to preclude a determination of joint employment, in the garment industry or otherwise, for entities other than brand guarantors.
The piece-rate ban and hourly-pay requirement would not apply to employees covered by a genuine collective bargaining agreement that expressly addresses wages, hours and working conditions; provides pay above 1.5 times the regular rate for hours over 40 in a week; guarantees an hourly minimum at least 10% above the higher of the applicable state or referenced federal minimum wage; and provides a wage-dispute process. This exception would not itself remove brand-guarantor liability.
Subsections (a) and (b) shall not apply for purposes of an employee employed in the garment industry who is covered by a bona fide collective bargaining agreement that expressly provides for— (1) wages, hours of work, and working conditions 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 employee that is not less than 10 percent more than the higher of— (i) the minimum wage rate under an applicable 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.
The proposed rules would cover clothing and wearable accessories, including handbags, and manufacturing activities such as cutting, sewing, repairing, finishing, dyeing and design alteration for goods intended for sale or resale. The Labor Secretary could identify additional covered operations by regulation.
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.
The term garment manufacturing means— (i) sewing, cutting, making, processing, repairing, finishing, assembling, pressing, or dyeing a garment, including a section or component of a garment, designed for or intended to be worn by an individual, 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) any other form of preparation of a garment described in clause (i) by any person contracting for such preparation; and (iv) any other operation or practice as may be identified in regulations issued by the Secretary consistent with the purposes of this section.
The definition of garment manufacturing would exclude individuals making garments entirely alone, without help from contractors, employees or anyone else. It would also exclude cleaning, alteration and tailoring after retail sale, and allow further exclusions by regulation consistent with the section's purposes.
The term garment manufacturing does not include— (i) manufacturing of garments by an individual who manufactures the garments by himself or herself without the assistance of a garment contractor, employee, or any other individual; (ii) cleaning, altering, or tailoring any garment, including a section or component of a garment, after the garment has been sold at retail; or (iii) any other form of manufacturing as may be identified in regulations issued by the Secretary consistent with the purposes of this section.
The bill distinguishes contractors, which primarily manufacture garments for others under contract with compensated help, from manufacturers, which can manufacture without hiring a garment contractor. Manufacturers could still use contractors, and the contractor definition would include subcontractors primarily engaged in garment manufacturing.
The term garment contractor— (A) means any person who, with the assistance of an employee or any other individual compensated by the person, is primarily engaged through a contract in garment manufacturing for another person, including for another garment contractor, a garment manufacturer, or a brand guarantor; and (B) includes a subcontractor that is primarily engaged in garment manufacturing.
The term garment manufacturer— (A) means a person (including a brand guarantor) that is engaged in garment manufacturing and has the ability to manufacture garments without contracting with a garment contractor; (B) includes such a person that may use a garment contractor in its operations; and (C) does not include a garment contractor.
The bill would add violations of the new garment requirements to the Fair Labor Standards Act's prohibited acts. In an action under that added prohibition, a brand guarantor could raise a defense by showing it had no knowledge of the alleged violation. The text places the burden of showing lack of knowledge on the guarantor.
by adding at the end the following: (7) to violate section 8.
For the purposes of subsection (a)(7), it shall be an affirmative defense to an action under such subsection 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.
Violations of the proposed garment requirements could lead to monetary or other court-ordered relief, including lost wages plus an equal additional amount as damages. The bill would also extend the authority and requirements of existing Fair Labor Standards Act section 16(c) to these violations, as appropriate.
Any person who violates section 8 shall be liable for such legal or equitable relief as may be appropriate to effectuate the purposes of such section, including the payment of wages lost and an additional equal amount as liquidated damages.
The authority and requirements described in this subsection shall apply with respect 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 appropriate to effectuate the purposes of such section, including the payment of wages lost and an additional equal amount as liquidated damages.
Section 2's amendments would take effect six months after enactment. The Labor Secretary could issue implementing regulations or guidance. The bill would also repeal existing Fair Labor Standards Act section 10, whose contents are not supplied.
The amendments made by this section shall take effect on the date that is 6 months after the date of enactment of this Act.
The Secretary may prescribe such regulations or other guidance as may be necessary to carry out this section.
Section 10 of the Fair Labor Standards Act of 1938 (29 U.S.C. 210) is repealed.
Beginning six months after enactment, garment manufacturers and contractors would generally need annual Department of Labor registration to operate. Registration would require a written form, photographic identity verification for owners, partners and corporate officers, proof of workers' compensation insurance covering all production employees, and a fee.
Beginning on the date that is 6 months after the date of enactment of this Act, no garment manufacturer or garment contractor shall engage in the garment industry during any year unless the manufacturer or contractor has registered for such year with the Secretary in accordance with this section.
A garment manufacturer or garment contractor registering under this section shall submit to the Secretary— (A) a form, in writing, containing the information described in paragraph (2); (B) photographic verification of the identify of— (i) each owner or partner of the garment manufacturer or garment contractor; and (ii) in the case the garment manufacturer or garment contractor is a corporation, each officer of the corporation; (C) verification that the garment manufacturer 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).
Registration would require names, home addresses and phone numbers for production employees. Owners, partners, applicable officers and the ten largest shareholders would also have to provide Social Security numbers. People with a financial interest in the business would have to be identified by name, home address and Social Security number, with the amount of their interest.
The name, residential address, and phone number of all production employees of the garment manufacturer or garment contractor.
The name, residential address, phone number, and social security number of— (i) each owner or partner of the garment manufacturer or garment contractor; (ii) if applicable, each officer of the garment manufacturer or garment contractor; and (iii) if applicable, each of the 10 largest shareholders of the garment manufacturer or garment contractor.
The name, residential address, and social security number of each person with a financial interest in the business of the garment manufacturer or garment contractor in the garment industry, and the amount of that interest (if any).
A registering corporation would have to state that none of its shares are listed on a national securities exchange or regularly quoted in the specified over-the-counter market, where securities are quoted outside an exchange. This is a substantive registration condition concerning publicly traded shares.
In the case in which the garment manufacturer or garment contractor is a corporation, a statement ensuring that no shares of the corporation are listed on a national securities exchange or regularly quoted in an over-the-counter market by one or more members of a national or an affiliated securities association.
Registrants would disclose their business structure, time in the industry, applicable tax identification number, manufacturer or contractor status, labor-organization contracts and specified subcontracting activity. They would also report Fair Labor Standards Act violations found by a court or the Labor Secretary during the preceding three years involving the business, owners, partners, corporate officers or ten largest corporate shareholders, including the nature and date of violations.
A statement of whether the garment manufacturer or garment contractor is a sole proprietorship, partnership, or corporation.
(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 garment contractor. (H) A statement of the status of the garment manufacturer or garment contractor as a manufacturer or contractor. (I) A statement of whether the garment manufacturer or garment contractor has contracted with a labor organization, and, if so, the name and address of such labor organization.
A statement as to whether, within the preceding 3-year period, any of the following 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 garment contractor. (II) Any owner of or any partner of the garment manufacturer or garment contractor. (III) In the case the garment manufacturer or garment contractor is a corporation, any officer of the corporation or any of the 10 largest shareholders of the corporation.
a statement of the nature of such violation and the date on which such violation occurred.
In the case of a contractor, a statement of whether the contractor has subcontracted for the cutting, sewing, dyeing, or assembling of textiles or apparel or sections or components of apparel.
The annual registration fee would be at least $200 and would fund administration of the registration section. The Secretary could prorate the fee for a qualifying new business's first registration. A business could include divisions, subsidiaries and related companies in one registration.
The registration fee required under this subsection for each year shall be not less than $200.
The Secretary may prorate the registration fee under subparagraph (A) for any registration described in subsection (d)(2)(B)(i).
The Secretary shall use the total amount of each registration fee required under this subsection for carrying out this section.
Each division, subsidiary corporation, or related company of a garment manufacturer or garment contractor may, at the option of the manufacturer or contractor, be named and included under 1 registration under this section.
The general initial registration deadline would be six months after enactment, followed by annual filing on a date set by the Secretary. Businesses first starting garment operations or entering a manufacturing contract after enactment would instead have an initial filing deadline six months after that event, followed by annual filing.
Except as provided under subparagraph (B), each registration submitted 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 thereafter on a date determined by the Secretary.
In the case of a garment manufacturer or garment contractor that begins garment manufacturing operations or enters into a contract for such operations for the first time after the date of enactment of this Act, the registration required under this section shall be submitted— (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 determined by the Secretary.
The Secretary would issue certificates to applicants meeting the registration requirements. Certificates would generally last 12 months; a qualifying new business's first certificate would last until its next assigned registration date. Businesses would have to post certificates where employees can read them during the workday.
The Secretary shall issue a certificate of registration to each garment manufacturer or garment contractor that submits a registration meeting the requirements under this section.
Except as provided in subparagraph (B), each certificate issued under paragraph (1) shall be effective for a period of 12 months.
A certificate with respect to a registration submitted under subsection (d)(2)(B)(i) shall be effective until the following registration date as determined by the Secretary.
Each garment manufacturer or garment contractor receiving a certificate under paragraph (1) shall post such certificate in a place where it may be read by any employee of the manufacturer or contractor during the workday.
The Secretary could suspend or revoke registration for knowingly false application statements or failure to comply with the bill or its regulations. The Secretary would have to establish recordkeeping requirements by regulation and could issue other implementing regulations or guidance.
The Secretary may suspend or revoke a certificate of registration issued under paragraph (1) if the garment manufacturer or garment contractor that submitted the registration— (A) has knowingly made any misrepresentation in the application for such certificate; or (B) has failed to comply with this Act or any regulation under this Act.
The Secretary shall, through regulations, establish requirements for recordkeeping for all garment manufacturers and garment contractors engaging in the garment industry in order to assist in enforcing the requirements of this section.
The Secretary may prescribe such regulations or other guidance as may be necessary to carry out this section.
For violations of the registration section, the Secretary could impose a civil penalty of up to $50 million. The amount would have to take account of business size, good faith, seriousness, prior violations of the section and recordkeeping compliance.
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.
In assessing the amount of a penalty under this subsection, the Secretary shall give consideration to— (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 subsection (f).
The bill would establish an Office of the Garment Industry within the Department of Labor, headed by an Undersecretary appointed by the Labor Secretary. The Undersecretary would administer registration and the domestic manufacturing support program and assist the Wage and Hour Division with enforcement of the new garment labor requirements.
There is established in the Department of Labor the Office of the Garment Industry
The Secretary of Labor shall appoint an Undersecretary of the Garment Industry (referred to in this section as the Undersecretary) to head the Office.
The Undersecretary shall— (A) carry out section 3 using sums appropriated under subsection (c); (B) carry out the national domestic garment 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).
The bill would authorize Congress to provide $10 million for fiscal year 2027 to establish the office and support registration and enforcement assistance, plus $3 million annually for those functions in fiscal years 2028–2032. These are funding authorizations, rather than actual appropriations. Any money later appropriated under this authorization would remain available until spent.
There are authorized to be appropriated to the Secretary of the Labor— (A) $10,000,000 for fiscal year 2027, to establish the Office and carry out the functions described in subparagraphs (A) and (C) of subsection (b)(2); and (B) $3,000,000 for each of fiscal years 2028 through 2032, to carry out the functions described in subparagraphs (A) and (C) of subsection (b)(2).
Any sums appropriated under the authorization contained in this subsection shall remain available, without fiscal year limitation, until expended.
The proposed domestic manufacturing support program would award competitive grants to garment manufacturers incorporated in and manufacturing within the United States, or nonprofits providing garment-industry workforce development opportunities.
The term eligible entity means an entity that is— (A) a garment manufacturer that is incorporated in and performs garment manufacturing within the United States; or (B) a nonprofit organization that provides workforce development opportunities with respect to the garment industry.
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.
Grant applicants would have to describe their proposed project and provide an implementation plan reflecting expected participation and partnerships with applicable labor organizations and relevant community stakeholders. The Secretary would set application timing, format and other required information.
An eligible entity seeking a grant under this section shall submit to the Secretary an application 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 partnership with, applicable labor organizations and relevant community stakeholders.
Grant selection would give priority to eligible applicants with a workforce covered by a collective bargaining agreement; state certification as a minority-owned, women-owned or veteran-owned business; or more than five years of garment manufacturing operations in the United States. These are selection preferences, not guaranteed awards.
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 business, women-owned business, or veteran-owned business; or (C) that have operated as a garment manufacturer within the United States for more than 5 years.
Each grant could be no more than $5 million. Allowed uses would include worker training, manufacturing tools and equipment, facility acquisition and improvements, workplace health and safety, and educating employees about rights under the bill and other relevant laws.
The amount of a grant awarded under this section may not be more than $5,000,000.
An eligible entity receiving a grant under this section shall use the grant funds to support— (1) investments in training and workforce development for employees within the garment industry; (2) the acquisition of relevant tools and equipment 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 Federal, State, or local laws.
If the Secretary determined that a grant recipient violated the bill or its amendments, the recipient would have to return unused grant money, in part or in full as required by the Secretary. Returned funds would be available for new grants. Recipients would also have to report how they used their grants within six months of receipt.
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 eligible entity violated any provision of this Act, including any amendment made by this Act.
Amounts returned under paragraph (1) shall be made available for grant awards under subsection (b).
Not later than 6 months after the date on which an eligible entity receives a grant under this section, the eligible entity shall submit to the Secretary a report that includes an account of the use of grant funds awarded under this section.
The bill would authorize $100 million for the grant program. This provision would authorize future appropriations rather than itself provide the money, and it states no fiscal-year schedule for that authorization.
There is authorized to be appropriated $100,000,000 to carry out this section.
If a provision, amendment or particular application were held unconstitutional, the bill directs that the remaining provisions and other applications remain unaffected. This clause does not establish whether any provision is constitutional.
If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act and the amendments made by this Act, and the application of the provision or amendment to any other person or circumstance, shall not be affected.
The supplied official-actions snapshot, updated September 29, 2026, records introduction in the House and referral to the House Committee on Education and Workforce on September 14, 2026. It does not establish what happened after that snapshot.
Source snapshot updated 2026-09-29T14:10:40Z. 2026-09-14: Referred to the House Committee on Education and Workforce. 2026-09-14: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-09-14. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the bill's garment-industry subject was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish the contents or attachment history of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified in the complete supplied introduced text. This conclusion is limited to that version; formal earmark status cannot be established for materials not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains a conditional pay-rule exemption, a defense limited to brand guarantors and preferences within competitive grant selection. These findings identify differential treatment, without judging its justification or predicting its effects.
Employers of garment workers covered by qualifying collective bargaining agreements would be exempt from the proposed piece-rate ban and hourly-pay requirement for those workers. The exception requires specified wage and working-condition terms, overtime pay above 1.5 times the regular rate, an hourly minimum at least 10% above the higher applicable state or referenced federal minimum, and a wage-dispute process. It is a narrow exception within the bill's main pay policy.
(a) Prohibition against payment by piece rate
(b) Hourly rates
Subsections (a) and (b) shall not apply for purposes of an employee employed in the garment industry who is covered by a bona fide collective bargaining agreement that expressly provides for— (1) wages, hours of work, and working conditions 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 employee that is not less than 10 percent more than the higher of— (i) the minimum wage rate under an applicable 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.
Brand guarantors would receive a specific defense to actions under the added section 15(a)(7) prohibition if they show no knowledge of the alleged garment-rule violation. This qualifies the bill's accountability framework for that defined group; it is not an express blanket exemption from every form of liability.
For the purposes of subsection (a)(7), it shall be an affirmative defense to an action under such subsection 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.
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 garment contractors to perform the manufacturing operations.
Within the competitive grant program, eligible applicants would receive selection priority if their workforce has a collective bargaining agreement, they hold specified state certification as a minority-owned, women-owned or veteran-owned business, or they have manufactured garments in the United States for more than five years. These are express preferences among eligible applicants, related to the bill's domestic manufacturing support policy; they do not guarantee awards.
the Secretary shall award grants, on a competitive basis, to eligible entities to support garment manufacturing in the United States.
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 business, women-owned business, or veteran-owned business; or (C) that have operated as a garment manufacturer within the United States for more than 5 years.
Full text preserved for this analysis. Legislative record snapshot: Sep 29, 2026. How PlainBill uses AI