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119-s-5393119th CongressWALLET

FABRIC Act

Sponsored By: Senator Gillibrand, Kirsten E. [D-NY]

Introduced

Summary

Ending piece-rate pay in the U.S. garment industry. This bill would ban paying garment workers by piece and set an hourly minimum under the Fair Labor Standards Act, create brand guarantor joint liability, require annual Department of Labor registration and recordkeeping, and establish an Office of the Garment Industry to oversee enforcement and support domestic manufacturing.

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  • Workers: Garment employees would be paid at least the FLSA hourly rate instead of piece rates, though incentive bonuses tied to production would still be allowed.
  • Brands and contractors: Brands that contract for garment work can be held jointly and severally liable for wage violations; subcontracting layers can also carry liability, with a limited affirmative defense for lack of knowledge.
  • Manufacturers and contractors: Businesses must register yearly with the Department of Labor, pay at least a $200 fee, provide ownership and worker documentation, post registration certificates, and face civil penalties up to $50.0 million for registration-related violations.
  • Labor agreements: A bona fide collective bargaining agreement can preserve piece-rate or different pay rules if it meets specified wage and dispute-resolution conditions.

*Authorizes $10.0 million for fiscal year 2027 and $3.0 million annually for fiscal years 2028–2032 to establish and run the Office of the Garment Industry.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Stronger pay rules for garment workers

If enacted, the bill would ban piece-rate pay for covered garment workers and require employers to pay at least the federal minimum hourly wage in any week the worker makes goods for commerce. It would allow separate incentive or production bonuses on top of the hourly floor. Employees could recover unpaid wages and an equal amount as liquidated damages (so total recovery would be twice unpaid wages). Workers covered by a qualifying collective bargaining agreement could be exempt if the contract meets the higher overtime and minimum-pay and dispute-resolution rules.

New liability rules for brands

If enacted, brand entities that contract for garment work would be jointly and severally liable with employers for wage-law violations that occur while an employee is working for the brand. That joint liability can reach through subcontracting chains. A brand guarantor could raise an affirmative defense by showing it lacked knowledge of the violation. The bill would also define who counts as a brand guarantor, garment manufacturer, and garment contractor and describe covered operations.

New registration and grants for garment firms

If enacted, garment manufacturers and contractors would have to register with the Department of Labor each year starting six months after enactment. Registration would require identity checks, lists of production employees, proof of workers' compensation, and payment of at least a $200 annual fee (the Secretary may set and prorate fees). The bill would create an Office of the Garment Industry with initial funding of $10 million for FY2027 and $3 million per year for FY2028–2032 to run the program and enforcement. It would also authorize a $100 million competitive grant program for U.S. garment manufacturers and qualifying nonprofits, with individual grants capped at $5 million and reporting requirements for grantees.

Repeal of a Fair Labor rule

If enacted, the bill would repeal Section 10 of the Fair Labor Standards Act, effective six months after enactment. The summary does not specify the direct practical effects of that repeal. The impact on workers and businesses would depend on the current role of the repealed provision.

Sponsors & CoSponsors

Sponsor

Gillibrand, Kirsten E. [D-NY]

NY • D

Cosponsors

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 9/14/2026

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 9/14/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 9/14/2026

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 9/22/2026

Roll Call Votes

No roll call votes available for this bill.

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