,,ii #aaith ,,congress #b;d ,session ,s4 #ecic ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ad1 #bjbf,mrs4 ,gillibrand 7for herself1 ,mr4 ,sanders1 ,ms4 ,warren1 and ,ms4 ,duckworth7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,fair ,labor ,standards ,act of #aich to prohibit employers from paying employees in the garment industry by piece rate1 to require manufacturers and contractors in the garment industry to register with the ,department of ,labor1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,fashioning ,accountability and ,building ,real ,institutional ,change ,act or the ,,fabric ,act4 #b4 ,payment and liability requirements in the garment industry 7a7 ,in general ,the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 is amended-- 7#a7 by inserting after section #g 7#bi ,u4,s4,c4 #bjg7 the following3 #h4 ,requirements for the garment industry 7a7 ,prohibition against payment by piece rate ,no employer shall pay an employee employed in the garment industry1 who in any workweek is engaged in commerce or in the production of goods for commerce1 or is employed in an enterprise engaged in commerce or in the production of goods for commerce1 by the piece or unit1 or by piece rate4 7b7 ,hourly rates 7#a7 ,in general ,an employer shall pay each employee employed in the garment industry1 who in any workweek is engaged in commerce or in the production of goods for commerce1 or is employed in an enterprise engaged in commerce or in the production of goods for commerce1 at an hourly rate that is not less than the rate in effect under section #f7;a77#a74 7#b7 ,incentive bonuses ,nothing in this section shall be construed to prohibit incentive-based bonuses 7including bonuses determined by the production of goods for commerce1 by the piece or unit1 or by piece rate7 for employees employed in the garment industry4 7c7 ,joint and several liability of brand guarantors 7#a7 ,in general ,a brand guarantor who contracts with an employer of an employee described in paragraph 7#b7 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 guarantor4 7#b7 ,employees ,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 commerce1 or is employed in an enterprise engaged in commerce or in the production of goods for commerce4 7#c7 ,subcontracts ,for purposes of paragraph 7#a71 an employer of an employee described in paragraph 7#b7 includes any other person who1 through #a or more subcontracts1 subcontracts with the employer of such an employee for the performance of services in the garment industry4 7#d7 ,rule of construction ,nothing in this subsection shall be construed to preclude a determination of joint employment1 in the garment industry or otherwise1 for entities other than brand guarantors4 7d7 ,nonapplicability ,subsections 7a7 and 7b7 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-- 7#a7 wages1 hours of work1 and working conditions of the employee2 7#b7 7,a7 a wage rate for all hours worked by the employee in excess of #dj hours in a week that is greater than one and one-half times the regular rate at which such employee is employed2 and 7,b7 a minimum hourly rate of pay for the employee that is not less than #aj percent more than the higher of-- 7i7 the minimum wage rate under an applicable ,state law2 or 7ii7 the minimum wage rate in effect under section #f7;a77#a72 and 7#c7 a process to resolve disputes concerning nonpayment of wages4 7e7 ,regulations ,the ,secretary may prescribe such regulations or other guidance as may be necessary to carry out this section4 7f7 ,definitions ,in this section3 7#a7 ,brand guarantor ,the term brand guarantor means any person contracting for the performance of garment manufacturing1 including through licensing of a brand or name1 regardless of whether the party with whom the person contracts performs the manufacturing operations or hires garment contractors to perform the manufacturing operations4 7#b7 ,garment ,the term garment includes any article of wearing apparel or accessory designed or intended to be worn by an individual1 including clothing1 hats1 gloves1 handbags1 hosiery1 ties1 scarfs1 and belts4 7#c7 ,garment contractor ,the term garment contractor-- 7,a7 means any person who1 with the assistance of an employee or any other individual compensated by the person1 is primarily engaged through a contract in garment manufacturing for another person1 including for another garment contractor1 a garment manufacturer1 or a brand guarantor2 and 7,b7 includes a subcontractor that is primarily engaged in garment manufacturing4 7#d7 ,garment industry ,the term garment industry means the industry of garment manufacturing4 7#e7 ,garment manufacturer ,the term garment manufacturer-- 7,a7 means a person 7including a brand guarantor7 that is engaged in garment manufacturing and has the ability to manufacture garments without contracting with a garment contractor2 7,b7 includes such a person that may use a garment contractor in its operations2 and 7,c7 does not include a garment contractor4 7#f7 ,garment manufacturing 7,a7 ,in general ,the term garment manufacturing means-- 7i7 sewing1 cutting1 making1 processing1 repairing1 finishing1 assembling1 pressing1 or dyeing a garment1 including a section or component of a garment1 designed for or intended to be worn by an individual1 which is to be sold or offered for sale or resale2 7ii7 altering the design1 or causing another person to alter the design1 of a garment described in clause 7i72 7iii7 any other form of preparation of a garment described in clause 7i7 by any person contracting for such preparation2 and 7iv7 any other operation or practice as may be identified in regulations issued by the ,secretary consistent with the purposes of this section4 7,b7 ,exclusions ,the term garment manufacturing does not include-- 7i7 manufacturing of garments by an individual who manufactures the garments by himself or herself without the assistance of a garment contractor1 employee1 or any other individual2 7ii7 cleaning1 altering1 or tailoring any garment1 including a section or component of a garment1 after the garment has been sold at retail2 or 7iii7 any other form of manufacturing as may be identified in regulations issued by the ,secretary consistent with the purposes of this section4 2 7#b7 in section #ae 7#bi ,u4,s4,c4 #bae7;a77-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#e71 by striking and2 7ii7 in paragraph 7#f71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7#g7 to violate section #h4 2 and 7,b7 by adding at the end the following new subsection3 7c7 ,for the purposes of subsection 7a77#g71 it shall be an affirmative defense to an action under such subsection against a brand guarantor 7as defined in section #h7;f77 if such brand guarantor shows no knowledge of the violation of section #h alleged in such action4 2 and 7#c7 in section #af 7#bi ,u4,s4,c4 #baf7-- 7,a7 in subsection 7b7-- 7i7 by inserting after the third sentence the following3 ,any person who violates section #h shall be liable for such legal or equitable relief as may be appropriate to effectuate the purposes of such section1 including the payment of wages lost and an additional equal amount as liquidated damages42 and 7ii7 in the last sentence1 by striking #ae7;a77#c7 and inserting #h1 #ae7;a77#c712 and 7,b7 in subsection 7c71 by adding at the end the following3 ,the authority and requirements described in this subsection shall apply with respect to a violation of section #h1 as appropriate1 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 section1 including the payment of wages lost and an additional equal amount as liquidated damages44 7b7 ,conforming amendment ,section #aj of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #baj7 is repealed4 7c7 ,effective date ,the amendments made by this section shall take effect on the date that is #f months after the date of enactment of this ,act4 #c4 ,registration of garment manufacturers and contractors 7a7 ,definitions ,in this section3 7#a7 ,employee ,the term employee has the meaning given the term in section #c of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjc74 7#b7 ,garment contractor2 garment industry2 garment manufacturer2 garment manufacturing ,the terms garment contractor1 garment industry1 garment manufacturer1 and garment manufacturing have the meanings given such terms in section #h7;f7 of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjh7;f774 7#c7 ,production employee ,the term production employee1 with respect to a garment manufacturer or garment contractor1 means any employee of the manufacturer or contractor who is engaged in the garment industry4 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,labor1 acting through the ,undersecretary of the ,garment ,industry appointed under section #d7;b74 7b7 ,requirement ,to register with the ,department of ,labor ,beginning on the date that is #f months after the date of enactment of this ,act1 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 section4 7c7 ,registration requirements 7#a7 ,in general ,a garment manufacturer or garment contractor registering under this section shall submit to the ,secretary-- 7,a7 a form1 in writing1 containing the information described in paragraph 7#b72 7,b7 photographic verification of the identify of-- 7i7 each owner or partner of the garment manufacturer or garment contractor2 and 7ii7 in the case the garment manufacturer or garment contractor is a corporation1 each officer of the corporation2 7,c7 verification that the garment manufacturer or garment contractor has in effect a workers' compensation insurance policy for all production employees of the manufacturer or contractor2 and 7,d7 payment of the applicable registration fee described in paragraph 7#c74 7#b7 ,information in form ,the information described in this paragraph is each of the following3 7,a7 ,a statement of whether the garment manufacturer or garment contractor is a sole proprietorship1 partnership1 or corporation4 7,b7 ,the name1 residential address1 and phone number of all production employees of the garment manufacturer or garment contractor4 7,c7 ,the name1 residential address1 phone number1 and social security number of-- 7i7 each owner or partner of the garment manufacturer or garment contractor2 7ii7 if applicable1 each officer of the garment manufacturer or garment contractor2 and 7iii7 if applicable1 each of the #aj largest shareholders of the garment manufacturer or garment contractor4 7,d7 ,the name1 residential address1 and social security number of each person with a financial interest in the business of the garment manufacturer or garment contractor in the garment industry1 and the amount of that interest 7if any74 7,e7 ,in the case in which the garment manufacturer or garment contractor is a corporation1 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 association4 7,f7 ,a statement of how long the garment manufacturer or garment contractor has been in business in the garment industry4 7,g7 ,if applicable1 the tax identification number of the garment manufacturer or garment contractor4 7,h7 ,a statement of the status of the garment manufacturer or garment contractor as a manufacturer or contractor4 7,i7 ,a statement of whether the garment manufacturer or garment contractor has contracted with a labor organization1 and1 if so1 the name and address of such labor organization4 7,j7 7i7 ,a statement as to whether1 within the preceding #c-year period1 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 #aich 7#bi ,u4,s4,c4 #bja et seq473 7,i7 ,the garment manufacturer or garment contractor4 7,,ii7 ,any owner of or any partner of the garment manufacturer or garment contractor4 7,,iii7 ,in the case the garment manufacturer or garment contractor is a corporation1 any officer of the corporation or any of the #aj largest shareholders of the corporation4 7ii7 ,if any person or entity described in any of subclauses 7,i7 through 7,,iii7 of clause 7i7 has violated the ,fair ,labor ,standards ,act of #aich within the period described in such clause1 a statement of the nature of such violation and the date on which such violation occurred4 7,k7 ,in the case of a contractor1 a statement of whether the contractor has subcontracted for the cutting1 sewing1 dyeing1 or assembling of textiles or apparel or sections or components of apparel4 7#c7 ,registration fee 7,a7 ,in general ,the registration fee required under this subsection for each year shall be not less than #bjj4 7,b7 ,prorated fees ,the ,secretary may prorate the registration fee under subparagraph 7,a7 for any registration described in subsection 7d77#b77;,b77i74 7,c7 ,use ,the ,secretary shall use the total amount of each registration fee required under this subsection for carrying out this section4 7d7 ,submission 7#a7 ,consolidation ,each division1 subsidiary corporation1 or related company of a garment manufacturer or garment contractor may1 at the option of the manufacturer or contractor1 be named and included under #a registration under this section4 7#b7 ,timing 7,a7 ,in general ,except as provided under subparagraph 7,b71 each registration submitted under this section shall be filed not later than the date that is #f months after the date of enactment of this ,act and annually thereafter on a date determined by the ,secretary4 7,b7 ,new manufacturers or contractors ,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 ,act1 the registration required under this section shall be submitted-- 7i7 not later than #f months after the date on which the garment manufacturing operations begin or the contractor enters into the contract for such operations2 and 7ii7 annually thereafter on a date determined by the ,secretary4 7e7 ,certificates 7#a7 ,in general ,the ,secretary shall issue a certificate of registration to each garment manufacturer or garment contractor that submits a registration meeting the requirements under this section4 7#b7 ,applicability 7,a7 ,in general ,except as provided in subparagraph 7,b71 each certificate issued under paragraph 7#a7 shall be effective for a period of #ab months4 7,b7 ,new manufacturers or contractors ,a certificate with respect to a registration submitted under subsection 7d77#b77;,b77i7 shall be effective until the following registration date as determined by the ,secretary4 7#c7 ,posting ,each garment manufacturer or garment contractor receiving a certificate under paragraph 7#a7 shall post such certificate in a place where it may be read by any employee of the manufacturer or contractor during the workday4 7#d7 ,suspension or revocation ,the ,secretary may suspend or revoke a certificate of registration issued under paragraph 7#a7 if the garment manufacturer or garment contractor that submitted the registration-- 7,a7 has knowingly made any misrepresentation in the application for such certificate2 or 7,b7 has failed to comply with this ,act or any regulation under this ,act4 7f7 ,recordkeeping ,the ,secretary shall1 through regulations1 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 section4 7g7 ,enforcement 7#a7 ,in general ,the ,secretary may impose a civil money penalty of not more than #ej1jjj1jjj against any person who violates a requirement under this section4 7#b7 ,considerations ,in assessing the amount of a penalty under this subsection1 the ,secretary shall give consideration to-- 7,a7 the size of the business of the person2 7,b7 whether the violation of the person was committed in good faith2 7,c7 the gravity of the violation2 7,d7 the history of any previous violations of the person under this section2 and 7,e7 the history of the person in complying with the recordkeeping requirements under subsection 7f74 7h7 ,regulations ,the ,secretary may prescribe such regulations or other guidance as may be necessary to carry out this section4 #d4 ,undersecretary of the ,garment ,industry 7a7 ,in general ,there is established in the ,department of ,labor the ,office of the ,garment ,industry 7referred to in this section as the ,office74 7b7 ,undersecretary 7#a7 ,in general ,the ,secretary of ,labor shall appoint an ,undersecretary of the ,garment ,industry 7referred to in this section as the ,undersecretary7 to head the ,office4 7#b7 ,functions ,the ,undersecretary shall-- 7,a7 carry out section #c using sums appropriated under subsection 7c72 7,b7 carry out the national domestic garment manufacturing support program under section #e2 and 7,c7 provide assistance to the ,administrator of the ,wage and ,hour ,division in enforcing section #h of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjh74 7c7 ,authorization of appropriations 7#a7 ,in general ,there are authorized to be appropriated to the ,secretary of the ,labor-- 7,a7 #aj1jjj1jjj for fiscal year #bjbg1 to establish the ,office and carry out the functions described in subparagraphs 7,a7 and 7,c7 of subsection 7b77#b72 and 7,b7 #c1jjj1jjj for each of fiscal years #bjbh through #bjcb1 to carry out the functions described in subparagraphs 7,a7 and 7,c7 of subsection 7b77#b74 7#b7 ,availability ,any sums appropriated under the authorization contained in this subsection shall remain available1 without fiscal year limitation1 until expended4 #e4 ,national domestic garment manufacturing support program 7a7 ,definitions ,in this section3 7#a7 ,eligible entity ,the term eligible entity means an entity that is-- 7,a7 a garment manufacturer that is incorporated in and performs garment manufacturing within the ,united ,states2 or 7,b7 a nonprofit organization that provides workforce development opportunities with respect to the garment industry4 7#b7 ,garment industry2 garment manufacturer2 garment manufacturing ,the terms garment industry1 garment manufacturer1 and garment manufacturing have the meanings given such terms in section #h7;f7 of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjh7;f774 7#c7 ,secretary ,the term ,secretary means the ,secretary of ,labor1 acting through the ,undersecretary of the ,garment ,industry appointed under section #d7;b74 7b7 ,in general ,from amounts made available under subsections 7f77#b7 and 7h71 the ,secretary shall award grants1 on a competitive basis1 to eligible entities to support garment manufacturing in the ,united ,states4 7c7 ,application ,an eligible entity seeking a grant under this section shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require1 including-- 7#a7 a description of the project that the eligible entity proposes to carry out using such grant2 and 7#b7 an implementation plan of such project that reflects the expected participation of1 and partnership with1 applicable labor organizations and relevant community stakeholders4 7d7 ,award 7#a7 ,selection ,in awarding grants under this section to eligible entities1 the ,secretary shall give priority to eligible entities-- 7,a7 with a workforce that is covered by a collective bargaining agreement2 7,b7 that are certified by a ,state in which such eligible entity operates as a minority-owned business1 women-owned business1 or veteran-owned business2 or 7,c7 that have operated as a garment manufacturer within the ,united ,states for more than #e years4 7#b7 ,amount ,the amount of a grant awarded under this section may not be more than #e1jjj1jjj4 7e7 ,use of funds ,an eligible entity receiving a grant under this section shall use the grant funds to support-- 7#a7 investments in training and workforce development for employees within the garment industry2 7#b7 the acquisition of relevant tools and equipment for garment manufacturing in the ,united ,states2 7#c7 the acquisition of1 and capital improvements to1 facilities for garment manufacturing in the ,united ,states and to promote the health and safety of employees in such facilities2 or 7#d7 efforts to assist in educating employees about rights under this ,act and other relevant ,federal1 ,state1 or local laws4 7f7 ,return of funds 7#a7 ,in general ,an eligible entity receiving a grant under this section shall return any unused amount of such grant 7in part or in full1 as required by the ,secretary7 if the ,secretary determines the eligible entity violated any provision of this ,act1 including any amendment made by this ,act4 7#b7 ,use of returned funds ,amounts returned under paragraph 7#a7 shall be made available for grant awards under subsection 7b74 7g7 ,report ,not later than #f months after the date on which an eligible entity receives a grant under this section1 the eligible entity shall submit to the ,secretary a report that includes an account of the use of grant funds awarded under this section4 7h7 ,authorization of appropriations ,there is authorized to be appropriated #ajj1jjj1jjj to carry out this section4 #f4 ,severability ,if any provision of this ,act1 an amendment made by this ,act1 or the application of such provision or amendment to any person or circumstance is held to be unconstitutional1 the remainder of this ,act and the amendments made by this ,act1 and the application of the provision or amendment to any other person or circumstance1 shall not be affected4