Apparel Manufacturing
This page provides useful information for apparel manufacturers.Overview
All apparel manufacturers and contractors engaged in the making, cutting, sewing, finishing, assembling, pressing or otherwise producing of any men's, women's, children's, or infant's apparel or section or component thereof must register with the NYS Department of Labor's Apparel Industry Task Force. This includes but is not limited to apparel services industries such as contractors, jobbers, or manufacturers engaged in pleating, embroidery, stitching, buttons, belts, trimmings, shoulder pads and other accessories. Exemptions are the cleaning or tailoring after the apparel has been sold at retail. Additionally, when a retailer works directly with a contractor to produce garments, the retailer is considered a manufacturer and must register as well.
The NYS Labor Law, Article 12A requires all Apparel Industry Manufacturers and Contractors to register each year, on or before January 15th, if they produce garments or accessories for garments in New York State. Registration ensures that apparel firms meet basic standards, such as maintaining Workers' Compensation/Disability Insurance, providing Unemployment Insurance coverage, and paying outstanding civil penalties. The law requires that apparel firms do business only with registered apparel contractors and manufacturers.
The NYS Department of Labor maintains a registration database with businesses registered as contractors or manufacturers. A garment contractor or manufacturer that fails to register is breaking state law and is considered a sweatshop operation. The NYS Department of Labor also recommends that you ask a contractor whether your order may be subcontracted out. If so, there is a chance that sweatshop labor might be used at some point in production and the garment produced may be considered 'unlawfully manufactured.'
The NYS Department of Labor's Apparel Industry Task Force conducts monthly seminars for manufacturers, contractors, retailers and business groups to help raise working standards and strengthen voluntary compliance with state and federal laws. For further information and compliance contact the NYS Department of Labor, Apparel Industry Task Force.
Sales Tax Obligations:
If you sell clothing, footwear, or items used to make or repair exempt clothing for less than $110 per item or pair of items, your sales are exempt from the New York State 4% sales and use taxes. This exemption does not apply to local sales and use taxes unless the county or city imposing the taxes elects to provide the exemption.
The NYS Labor Law, Article 12A requires all Apparel Industry Manufacturers and Contractors to register each year, on or before January 15th, if they produce garments or accessories for garments in New York State. Registration ensures that apparel firms meet basic standards, such as maintaining Workers' Compensation/Disability Insurance, providing Unemployment Insurance coverage, and paying outstanding civil penalties. The law requires that apparel firms do business only with registered apparel contractors and manufacturers.
The NYS Department of Labor maintains a registration database with businesses registered as contractors or manufacturers. A garment contractor or manufacturer that fails to register is breaking state law and is considered a sweatshop operation. The NYS Department of Labor also recommends that you ask a contractor whether your order may be subcontracted out. If so, there is a chance that sweatshop labor might be used at some point in production and the garment produced may be considered 'unlawfully manufactured.'
The NYS Department of Labor's Apparel Industry Task Force conducts monthly seminars for manufacturers, contractors, retailers and business groups to help raise working standards and strengthen voluntary compliance with state and federal laws. For further information and compliance contact the NYS Department of Labor, Apparel Industry Task Force.
Sales Tax Obligations:
If you sell clothing, footwear, or items used to make or repair exempt clothing for less than $110 per item or pair of items, your sales are exempt from the New York State 4% sales and use taxes. This exemption does not apply to local sales and use taxes unless the county or city imposing the taxes elects to provide the exemption.
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