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Fashion operates in an environment with relatively few regulations, especially compared to other industries in America. In the face of a lack of strict regulations and a growing footprint, thanks to increasingly complex supply chains and increased consumer demand for information about companies’ environmental, social and governance (“ESG”) operations, elements of the fashion industry have largely turned to self-regulation. This adoption of brand-specific ESG-based action plans—from third-party certifications, such as the B Corporation rating, and controversial standardized measures such as the Higg Index—has prompted an onslaught of strategies—with almost no legal consequences. If a company and/or board fails to comply.
As for the rules about fashion and clothing, there are no obstacles and / or gaps. Melissa Gamble, an assistant professor in the fashion studies department at Columbia College Chicago, said that laws aimed at protecting consumer safety, for example, are being enforced “in an alarmingly challenging environment.” “Purchasers are responsible for verifying the quality and suitability of goods before making a purchase.” At the same time, federal wage and hour laws are “often ineffective [at protecting garment workers] Gamble when manufacturers subcontract to other companies to cut and expand, thereby allowing these brands to avoid liability by arguing that they cannot be held responsible—like the retailer, but the manufacturer—for things they cannot control.
While this has been the case for the industry for some time, it appears that change is on the way. Signs are coming through new government initiatives and new laws being implemented in Europe. As part of broader climate legislation, France, for example, has passed a law requiring “carbon labeling” on clothing and textiles to help inform consumers of the impact of their purchases. This law was enacted in It closely follows the “anti-waste” law passed by the French government in 2020, which prohibits the destruction of surplus stock and samples, among other things. Gamble notes that, taken together, these developments indicate that “the rules of the fashion industry and the larger regulatory environment are indeed changing.”
All this being said, a fashion-oriented law is emerging that the US should keep an eye on. With that in mind, here’s a running list of key local laws that industry residents should be aware of – and we’ll keep track of developments for each and update accordingly…
New York Fashion Workers Act
Introduced: March In the year 23, 2022 by State Senator Brad Holman and Assemblyman Carius Reyes
The New York Fashion Workers Law (S.8638-A / A.9762-A) provides for registration and imposition of obligations on model management companies and creative management companies and improves New York’s complaint procedures and penalties. State Labor Law. If approved, the bill — co-sponsored by New York State Senator Brad Holman and New York State Assemblyman Carius Reyes — would regulate regulatory agencies and provide for figures designated as independent contractors, from runway models to makeup artists, stylists, and influencers, among others.
Key provisionsThe Fashion Jobs Act creates new compliance requirements for “retail stores, manufacturers, clothing designers, advertising agencies, photographers, publishing houses, or any other such person or entity that accepts modeling services from Creative, directly or through intermediaries.” Such obligations focus on things like payment (companies are required to pay models/inventions within 45 days); Contracts (companies are required to provide models/creators with copies of contracts and agreements, and contracts between a company and a model/creator are limited to two years and cannot be renewed without confirmation); and arguments.
Civil penalties for failure to comply include fines of up to $3,000 for the first violation and up to $5,000 for each additional violation. Willful failure to comply with registration is a Class B misdemeanor.
Possible implicationsMorgan Lewis attorneys Lenny Battaglia, Melissa Rodriguez and Carolyn Corcoran said the bill is “broadly interpreted” and could have “major implications not only for traditional modeling or creative management companies with fee-based structures, but also for retailers who hire models directly.” /Creators of studio photos and advertising campaigns.
Current situationThe Fashion Workers Act advanced the Senate Labor Committee, but failed to get a final vote in the last days of the session. It will be considered in the 2023 legislative session, which begins in January.
Fashion accountability and building real institutional change law
Introduced: May 12, 2022 for the Senate by US Senator Kirsten Gillibrand (D-NY); In the year July 21, 2022 for the House of Representatives by Rep. Carolyn Maloney
Aimed at “quick”.[ing] Establishing domestic apparel manufacturing and new workplace protections to make the U.S. a global leader in responsible apparel production, the Fashion Accountability and Construction Effective Institutional Reform (“FABRIC”) Act (S. 4213/ HR 8473) “Amends the Fair Labor Standards Act of 1938 to prohibit employers from underpaying workers in the garment industry, to require manufacturers and contractors in the garment industry to register with the Department of Labor, and for other purposes.”
Key provisionsThe Fabric Act “will promote transparency, hold bad actors accountable and establish a nationwide registry of the garment industry through the Department of Labor.”
Level the playing field.” Creating new standards to hold fashion brands and retailers, as well
Product partners jointly responsible for workplace wage violations; And keep an hourly wage in the garment industry until the minimum wage is passed and it eliminates tipping.
The bill would authorize fines of up to $50 million for violations.
Possible implicationsThe main point of contention in this bill comes from the “joint and several liability of brand guarantors” provision, which makes brands liable for infringements that occur under the supervision of their suppliers. Specifically, the Fabric Law states: “A brand surety who contracts with an employer of labor…shares joint and several liability for any breach of this law by the employer in the performance of services to the garment industry.” Labor” This calls for a more limited approach to joint liability from the Apparel and Footwear Association of America and the Council of Fashion Designers of America.
The authors of the bill included a clause on joint liability. Therefore, Brands (including licensors) as well as subcontractors share joint liability for any breach, including recovery of lost wages and additional damages if applicable.
Current situationThe FABRIC Act is for study in the Senate Finance Committee and the House Ways and Means and Education and Labor Committees.
New York Fashion Sustainability and Social Responsibility Act
IntroducedOctober 8, 2021 by State Senator Alessandra Biaggi
New York’s Fashion Sustainability and Social Responsibility Act (S7428/A8352), which focuses on establishing sustainability reporting requirements for large fashion industry entities, will require fashion retailers and limited-edition manufacturers—ie, international apparel/footwear manufacturers and retailers—to “actively engage[e] In any transaction for financial or pecuniary gain or profit” in New York and with global annual revenue exceeding $100 million – to partially map their supply chains and disclose environmental and social due diligence policies.
Key provisionsThe “Fashion Law” mandates that companies doing business in New York and meeting annual revenue thresholds must: (1) map at least 50 percent of their supply chain across all stages of production; (2) publish a social and environmental sustainability report that addresses prudent policies, procedures, and practices undertaken to identify, prevent, mitigate, and mitigate environmental and social risks, as well as the consequences of each; (3) Disclosure of their actual and potential negative ESG impacts, including greenhouse gas reporting, impacts on water and chemical management, product volume replaced by recycled materials, and monitoring and improvement of operating conditions. and (4) set and meet annual targets to reduce their environmental footprint, particularly greenhouse gas emissions, including estimated timeframes and metrics to demonstrate progress.
Non-compliance could result in fines of up to 2 percent of annual revenue and more than $450 million for companies.
Possible implicationsDentons’ Matthew Clarke, Babette Marzuzer-Wood, Jessica Argenti and Larissa Sapone said that as drafted, the fashion law “would have far-reaching implications for all major fashion brands and require compliance.” Given the serious nature of some of the proposed [reporting] Elements” in play, “There is strong opposition from some quarters to the bill as it stands.
Current situationThe FASHION Act was referred to the Senate Committee on Consumer Protection in January 2022.
California Garment Worker Protection Act
Effective dateJanuary 1, 2022
The California Garment Worker Protection Act (SB 62) was signed into law by California Governor Gavin Newsom on September 27th, which aims to prevent wage theft, mandate fair pay and improve working conditions for the approximately 45,000 garment workers in the state of California. The law mandates that workers in the garment manufacturing industry be paid an hourly wage that is no less than the minimum wage and that they are paid a set amount.
Key provisionsThe law: (1) prohibits installment payments; (2) creates joint and several liability for unpaid wages to “brand guarantors” along with manufacturers and contractors; and (3) creates new recordkeeping requirements for manufacturers and brand guarantors.
You may seek to recover unpaid wages and associated penalties by filing a claim with the Labor Commissioner against the contractor, apparel manufacturer, and brand warranty, and may pursue other applicable remedies under California or federal law.
Possible implicationsAlthough SB 62 “may ultimately curb the practices of some of the ‘bad actors’ in the apparel industry,” Sheppard Mullin’s Robert Foster and Morgan Forsey said, “the more immediate impact of the new law’s requirements may be that some companies contract.” Apparel manufacturers outside of California, thereby reducing the number of California apparel manufacturers and workers.
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