II 

118TH CONGRESS 

1ST SESSION S. 973 

To prohibit Federal contractors from imposing racial hiring quotas, 

benchmarks, or goals. 

IN THE SENATE OF THE UNITED STATES 

MARCH 23, 2023 

Mr. COTTON (for himself, Mr. SCOTT of Florida, Mr. HAGERTY, and Mr. 

HAWLEY) introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To prohibit Federal contractors from imposing racial hiring 

quotas, benchmarks, or goals. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Equal Op5 portunity from ESG Act’’. 

6 SEC. 2. PURPOSE. 

7 Acknowledging that distinctions between citizens 

8 solely because of their ancestry are, by their very nature, 

9 odious to a free people whose institutions are founded 

10 upon the doctrine of equality, and recognizing that existVerDate Sep 11 2014 22:21 Apr 05, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S973.IS S973

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1 ing regulations have failed to eradicate the use of racial 

2 hiring quotas among Federal contractors, the purpose of 

3 this Act is to require contracts with the Federal Govern4 ment to include an equal opportunity clause prohibiting 

5 racial hiring quotas, benchmarks, or goals. 

6 SEC. 3. DEFINITIONS. 

7 For purposes of this Act: 

8 (1) CONTRACTOR.—The term ‘‘contractor’’— 

9 (A) means any person that is awarded a 

10 contract with the Federal Government or a sub11 contract under such a contract, including any 

12 subcontractor (at any tier) of such person; and 

13 (B) includes a person that— 

14 (i) is a lessor or lessee; or 

15 (ii) is an employer of a worker per16 forming work on a contract with the Fed17 eral Government whose wages are cal18 culated pursuant to a special certificate 

19 issued under section 14(c) of the Fair 

20 Labor Standards Act of 1938 (29 U.S.C. 

21 214(c)). 

22 (2) EMPLOYMENT PRACTICES.—The term ‘‘em23 ployment practices’’— 

24 (A) means all terms and conditions of em25 ployment (including of any paid or unpaid felVerDate Sep 11 2014 22:21 Apr 05, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S973.IS S973

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1 lowship or internship), including all practices 

2 relating to the screening, recruitment, referral, 

3 nomination, selection, training, appointment, 

4 promotion, demotion, and assignment of per5 sonnel; and 

6 (B) includes advertising, hiring, assign7 ments, classification, discipline, layoff and ter8 mination, upgrading, transfer, leave practices, 

9 rate of pay, fringe benefits, or other forms of 

10 pay or credit for services rendered and use of 

11 facilities. 

12 (3) EXECUTIVE AGENCY.—The term ‘‘executive 

13 agency’’ has the meaning given that term in section 

14 133 of title 41, United States Code. 

15 (4) NATIONAL INTEREST.—The term ‘‘national 

16 interest’’— 

17 (A) means a national security interest, eco18 nomic interest, or public health and welfare in19 terest; and 

20 (B) does not include any purported inter21 est in— 

22 (i) racial or social justice objectives, 

23 affirmative action agendas, or any other 

24 race-based considerations; or 


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1 (ii) promoting, enabling, or excusing 

2 any policy, initiative, or practice of an em3 ployer concerning— 

4 (I) environmental, social, and 

5 governance (commonly known as 

6 ‘‘ESG’’); 

7 (II) diversity, equity, and inclu8 sion (commonly known as ‘‘DEI’’); or 

9 (III) corporate social responsi10 bility (commonly known as ‘‘CSR’’). 

11 (5) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Labor. 

13 SEC. 4. PROHIBITION ON IMPOSING RACIAL HIRING 

14 QUOTAS. 

15 (a) IN GENERAL.—The head of each executive agency 

16 shall, except as provided in subsection (b), ensure that 

17 each contract entered into by the executive agency on or 

18 after the date of enactment of this Act includes require19 ments that the contractor shall— 

20 (1) certify that, during the 5-year period imme21 diately preceding the date on which the contract is 

22 entered into, the contractor did not initiate, carry 

23 out, or enforce any system of quotas, benchmarks, 

24 or goals in regard to employment practices that enVerDate Sep 11 2014 22:21 Apr 05, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S973.IS S973

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1 courage or require any discrimination on the basis of 

2 race; and 

3 (2) not, during the performance of the contract, 

4 initiate, carry out, or enforce any system of quotas, 

5 benchmarks, or goals in regard to employment prac6 tices which encourage or require any discrimination 

7 on the basis of race. 

8 (b) EXCEPTION FOR LOOKBACK REQUIREMENT.— 

9 Notwithstanding subsection (a), the Secretary may exempt 

10 the head of an executive agency from the requirement to 

11 include the certification described in subsection (a)(1) in 

12 a specific contract, subcontract, or purchase order if the 

13 Secretary determines that special circumstances in the na14 tional interest so require. 

15 SEC. 5. REGULATIONS AND IMPLEMENTATION. 

16 (a) REGULATIONS REQUIRED.— 

17 (1) DEPARTMENT OF LABOR.—Not later than 

18 90 days after the date of enactment of this Act, the 

19 Secretary shall issue such regulations as are nec20 essary to implement this Act. 

21 (2) FEDERAL ACQUISITION REGULATION.—Not 

22 later than 90 days after the date on which the Sec23 retary issues regulations under paragraph (1), the 

24 Federal Acquisition Regulatory Council shall amend 

25 the Federal Acquisition Regulation, consistent with 


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1 such regulations, to provide for inclusion in any 

2 Federal procurement solicitation or contract the re3 quirements under section 4. 

4 (b) AGENCY IMPLEMENTATION.—Not later than 90 

5 days after the date on which the Secretary issues any reg6 ulations under subsection (a)(1) and except as provided 

7 in section 4(b), the head of each executive agency shall 

8 ensure that any contract entered into by the executive 

9 agency complies with the requirements set forth in section 

10 4(a). 

11 SEC. 6. ENFORCEMENT. 

12 (a) IN GENERAL.—The Secretary shall have the au13 thority to investigate potential violations of this Act and 

14 obtain compliance, including as provided in subsection (b). 

15 (b) PENALTIES FOR NONCOMPLIANCE.—In the case 

16 of a contractor that violates a contract requirement under 

17 section 4— 

18 (1) the relevant executive agency may cancel, 

19 terminate, or suspend (in whole or in part) the ap20 plicable contract; and 

21 (2) the Secretary may initiate a debarment pro22 ceeding with respect to the contractor. 

Æ 


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