Sec. 2. Payment and liability requirements in the garment industry
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The Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq. ) is amended— by inserting after section 7 ( 29 U.S.C. 207 ) the following: 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. 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).
Nothing in this section shall be construed to prohibit incentive-based bonuses for employees employed in the garment industry. 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. 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. For purposes of paragraph (1), an employer of an employee described in paragraph
(2)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. 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— wages, hours of work, and working conditions of the employee; 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 a minimum hourly rate of pay for the employee that is not less than 10 percent more than the higher of— the minimum wage rate under an applicable State law; or the minimum wage rate in effect under section 6(a)(1); and a process to resolve disputes concerning nonpayment of wages. The Secretary may prescribe such regulations or other guidance as may be necessary to carry out this section. In this section: 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. 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 contractor — means any person who, with the assistance of an employee or any other individual, is primarily engaged in garment manufacturing for another person, including for another garment contractor, a garment manufacturer, or a brand guarantor; and includes a subcontractor that is primarily engaged in garment manufacturing. The term garment industry means the industry of garment manufacturing. The term garment manufacturer means any person who is engaged in garment manufacturing who is not a garment contractor. The term garment manufacturing means— 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; altering the design, or causing another person to alter the design, of a garment described in clause (i); affixing a label to a garment described in clause (i); any other form of preparation of a garment described in clause
(i)by any person contracting for such preparation; and any other operation or practice as may be identified in regulations issued by the Secretary consistent with the purposes of this section. The term garment manufacturing does not include— manufacturing of garments by an individual who manufactures the garments by his or herself without the assistance of a garment contractor, employee, or any other individual; cleaning, altering, or tailoring any garment, including a section or component of a garment, after the garment has been sold at retail; or any other form of manufacturing as may be identified in regulations issued by the Secretary consistent with the purposes of this section. . in section 15 ( 29 U.S.C. 215(a) )— in subsection (a)— in paragraph (5), by striking the period and inserting ; or ; and by adding at the end the following: to violate section 8. ; and by adding at the end the following new subsection: For the purposes of subsection (a)(6), 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. ; and in section 16 ( 29 U.S.C. 216 )— in subsection (b)— by inserting after the third sentence the following: 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. ; and in the last sentence, by inserting before the period at the end or 8 ; and in subsection (c), by adding at the end the following: 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 10 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 210 ) is repealed. The amendments made by this section shall take effect on the date that is 6 months after the date of enactment of this Act.
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Sec. 2
Payment and liability requirements in the garment industry
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