Sec. 3. Registration of garment manufacturers and contractors
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In this section: The term employee has the meaning given the term in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 ). The terms garment contractor , garment industry , garment manufacturer , and garment manufacturing have the meanings given such terms in section 8(f) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 208(f) ). The term production employee , with respect to a garment manufacturer or garment contractor, means any employee of the manufacturer or contractor who is engaged in the garment industry.
The term Secretary means the Secretary of Labor, acting through the Undersecretary of the Garment Industry appointed under section 4(b). 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 form, in writing, containing the information described in paragraph (2); photographic verification of the identify of— each owner or partner of the garment manufacturer or garment contractor; and in the case the garment manufacturer or garment contractor is a corporation, each officer of the corporation; 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 payment of the applicable registration fee described in paragraph (3).
The information described in this paragraph is each of the following: A statement of whether the garment manufacturer or garment contractor is a sole proprietorship, partnership, or corporation. 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— each owner or partner of the garment manufacturer or garment contractor; if applicable, each officer of the garment manufacturer or garment contractor; and 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 in the garment industry, and the amount of that interest (if any). 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.
A statement of how long the garment manufacturer or garment contractor has been in business in the garment industry. If applicable, the tax identification number of the garment manufacturer or garment contractor. A statement of the status of the garment manufacturer or garment contractor as a manufacturer or contractor. 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. ): The garment manufacturer or garment contractor. Any owner of or any partner of the garment manufacturer or garment contractor. 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.
If any person or entity described in any of subclauses
(I)through
(III)of clause
(i)has violated the Fair Labor Standards Act of 1938 within the period described in such clause, 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 registration fee required under this subsection for each year shall be $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. 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— 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 annually thereafter on a date determined by the Secretary. 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 may suspend or revoke a certificate of registration issued under paragraph
(1)if the garment manufacturer or garment contractor that submitted the registration— has knowingly made any misrepresentation in the application for such certificate; or 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 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— the size of the business of the person; whether the violation of the person was committed in good faith; the gravity of the violation; the history of any previous violations of the person under this section; and the history of the person in complying with the recordkeeping requirements under subsection (f). The Secretary may prescribe such regulations or other guidance as may be necessary to carry out this section.
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