I 

116TH CONGRESS 

1ST SESSION H. R. 1521 

To deter, prevent, reduce, and respond to harassment in the workplace, 

including sexual harassment, sexual assault, and harassment based on 

protected categories; and to amend the Internal Revenue Code of 1986 

to modify the tax treatment of amounts related to employment discrimination and harassment in the workplace, including sexual harassment, 

sexual assault, and harassment based on protected categories. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 5, 2019 

Ms. FRANKEL (for herself, Mr. KATKO, Mr. NADLER, Mr. FITZPATRICK, Ms. 

BLUNT ROCHESTER, Ms. UNDERWOOD, Ms. STEFANIK, Ms. MOORE, 

Miss GONZA ́LEZ-COLO ́N of Puerto Rico, Ms. SPEIER, Ms. WASSERMAN

SCHULTZ, Ms. WILD, Mrs. DINGELL, Ms. HAALAND, Ms. KUSTER of 

New Hampshire, Mr. DESAULNIER, Mrs. DAVIS of California, Ms. 

CLARKE of New York, Ms. MENG, Ms. WILSON of Florida, Ms. ROYBALALLARD, Mr. LOWENTHAL, Mrs. DEMINGS, Ms. LEE of California, Ms. 

NORTON, Ms. VELA ́ZQUEZ, Ms. MCCOLLUM, Mrs. WATSON COLEMAN, 

Ms. JACKSON LEE, Mr. HASTINGS, Mr. CASTEN of Illinois, Ms. KAPTUR, 

Mr. RASKIN, Ms. DEAN, Ms. SCHAKOWSKY, Ms. HILL of California, Ms. 

PORTER, Ms. DELAURO, Mr. CISNEROS, Ms. CASTOR of Florida, Mrs. 

LAWRENCE, Mr. COHEN, Mr. ESPAILLAT, Mr. HARDER of California, 

Miss RICE of New York, Mr. COOPER, Mr. RUSH, Ms. JOHNSON of 

Texas, Ms. OMAR, Mr. SABLAN, Mr. COX of California, Ms. TLAIB, Mr. 

POCAN, Ms. CLARK of Massachusetts, and Ms. PRESSLEY) introduced the 

following bill; which was referred to the Committee on Education and 

Labor, and in addition to the Committees on Ways and Means, Financial 

Services, House Administration, Oversight and Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To deter, prevent, reduce, and respond to harassment in 


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the workplace, including sexual harassment, sexual assault, and harassment based on protected categories; and 

to amend the Internal Revenue Code of 1986 to modify 

the tax treatment of amounts related to employment 

discrimination and harassment in the workplace, including sexual harassment, sexual assault, and harassment 

based on protected categories. 

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 ‘‘Ending the Monopoly 

5 of Power Over Workplace harassment through Education 

6 and Reporting Act’’ or the ‘‘EMPOWER Act’’. 

7 TITLE I—PREVENTING AND RE8 SPONDING TO WORKPLACE 

9 HARASSMENT 

10 SEC. 101. PURPOSE AND AUTHORITY. 

11 It is the purpose of this title, through the exercise 

12 by Congress of its power to regulate commerce among the 

13 several States, to deter, prevent, reduce, and respond to 

14 harassment in the workplace, including sexual harass15 ment, sexual assault, and harassment based on other pro16 tected categories. 

17 SEC. 102. DEFINITIONS. 

18 In this title: 


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1 (1) APPLICANT.—The term ‘‘applicant’’ means 

2 an applicant for employment as an employee, inde3 pendent contractor, or outside worker. 

4 (2) CHARGE OF DISCRIMINATION.—The term 

5 ‘‘Charge of Discrimination’’ means a charge of dis6 crimination filed pursuant to section 706 of the Civil 

7 Rights Act of 1964 (42 U.S.C. 2000e–5). 

8 (3) COMMISSION.—The term ‘‘Commission’’ 

9 means the Equal Employment Opportunity Commis10 sion. 

11 (4) EMPLOYEE.—The term ‘‘employee’’ 

12 means— 

13 (A) an individual employed by an employer 

14 described in paragraph (5), including an outside 

15 worker in such individual’s office or place of 

16 employment; 

17 (B) an employee to which section 703, 704 

18 or 717(a) of the Civil Rights Act of 1964 (42 

19 U.S.C. 2000e–2; 2000e–3; 2000e–16(a)) ap20 plies, including an outside worker in such an 

21 employee’s office or place of employment; 

22 (C) a State employee to which section 

23 302(a)(1) of the Government Employee Rights 

24 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) ap25 plies, including an outside worker in such a 


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1 State employee’s office or place of employment; 

2 or 

3 (D) a covered employee, as defined in sec4 tion 101 of the Congressional Accountability 

5 Act of 1995 (2 U.S.C. 1301) or section 411(c) 

6 of title 3, United States Code, including an out7 side worker in such a covered employee’s office 

8 or place of employment. 

9 (5) EMPLOYER.—The term ‘‘employer’’ 

10 means— 

11 (A) a person engaged in an industry affect12 ing commerce, and any agent of such a person; 

13 (B) an entity to which section 703, 704, or 

14 717(a) of the Civil Rights Act of 1964 applies; 

15 (C) an employing authority to which sec16 tion 302(a)(1) of the Government Employee 

17 Rights Act of 1991 applies; or 

18 (D) an employing office, as defined in sec19 tion 101 of the Congressional Accountability 

20 Act of 1995 or section 411(c) of title 3, United 

21 States Code. 

22 (6) FAIR EMPLOYMENT PRACTICES AGEN23 CIES.—The term ‘‘fair employment practices agen24 cies’’ means State and local agencies with the auVerDate Sep 11 2014 20:29 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1521.IH H1521

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1 thority to enforce laws or regulations to prohibit dis2 crimination in employment. 

3 (7) INDEPENDENT CONTRACTOR.—The term 

4 ‘‘independent contractor’’ means an individual who, 

5 with respect to an employer, is a contractor based on 

6 the common law of agency. 

7 (8) LAW ENFORCEMENT AGENCY.—The term 

8 ‘‘law enforcement agency’’ means a government 

9 agency with criminal or civil law enforcement pow10 ers, which may include a government agency with 

11 regulatory or licensing authority. 

12 (9) NONDISCLOSURE CLAUSE.—The term ‘‘non13 disclosure clause’’ means a provision in a contract or 

14 agreement establishing that the parties to the con15 tract or agreement agree not to disclose information 

16 covered by the terms and conditions of the contract 

17 or agreement. 

18 (10) NONDISPARAGEMENT CLAUSE.—The term 

19 ‘‘nondisparagement clause’’ means a provision in a 

20 contract or agreement requiring one or more parties 

21 to the contract or agreement not to make negative 

22 statements about the other. 

23 (11) OUTSIDE WORKER.—The term ‘‘outside 

24 worker’’ means— 


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1 (A) a temporary worker hired through an 

2 employment agency (as defined in section 701 

3 of the Civil Rights Act of 1964 (42 U.S.C. 

4 2000e)) to provide services to an employer pur5 suant to an agreement between the employment 

6 agency and the employer; 

7 (B) an independent contractor for an em8 ployer or a subcontractor thereof; or 

9 (C) an intern or volunteer, whether paid or 

10 unpaid, for an employer. 

11 (12) SEXUAL ASSAULT.—The term ‘‘sexual as12 sault’’ means any nonconsensual sexual act pro13 scribed by Federal, tribal, or State law, including 

14 such an act that occurs when the victim lacks capac15 ity to consent. 

16 (13) SUBCONTRACTOR.—The term ‘‘subcon17 tractor’’ means any employer having a contract with 

18 a prime contractor or another subcontractor calling 

19 for supplies or services required for the performance 

20 of a contract or a government contract. 

21 (14) WORKPLACE HARASSMENT.—The term 

22 ‘‘workplace harassment’’ means unwelcome or offen23 sive conduct based on sex (including such conduct 

24 based on sexual orientation, gender identity, and 

25 pregnancy), race, color, national origin, disability, 


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1 age, or religion, whether that conduct occurs in-per2 son or through an electronic medium (which may in3 clude social media), in a work or work-related con4 text, which affects any term, condition, or privilege 

5 of employment. 

6 SEC. 103. PROHIBITING NONDISPARAGEMENT AND NON7 DISCLOSURE CLAUSES THAT COVER WORK8 PLACE HARASSMENT, INCLUDING SEXUAL 

9 HARASSMENT. 

10 (a) UNLAWFUL PRACTICES.— 

11 (1) PROHIBITION ON WORKPLACE HARASSMENT

12 NONDISCLOSURE CLAUSE.—Subject to subsection 

13 (b)(1), it shall be an unlawful practice for an em14 ployer to enter into a contract or agreement with an 

15 employee or applicant, as a condition of employment, 

16 promotion, compensation, benefits, or change in em17 ployment status or contractual relationship, or as a 

18 term, condition, or privilege of employment, if that 

19 contract or agreement contains a nondisparagement 

20 or nondisclosure clause that covers workplace har21 assment, including sexual harassment or retaliation 

22 for reporting, resisting, opposing, or assisting in the 

23 investigation of workplace harassment. 

24 (2) PROHIBITION ON ENFORCEMENT.—Not25 withstanding any other provision of law, it shall be 


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1 an unlawful practice and otherwise unlawful for an 

2 employer to enforce or attempt to enforce a non3 disparagement clause or nondisclosure clause de4 scribed in paragraph (1). 

5 (b) SETTLEMENT OR SEPARATION AGREEMENTS.— 

6 (1) IN GENERAL.—The provisions of subsection 

7 (a) do not apply to a nondisclosure clause or non8 disparagement clause contained in a settlement 

9 agreement or separation agreement that resolves 

10 legal claims or disputes when— 

11 (A) such legal claims accrued or such dis12 putes arose before the settlement agreement or 

13 separation agreement was executed; and 

14 (B) such clauses are mutually agreed upon 

15 and mutually benefit both the employer and em16 ployee. 

17 (2) UNLAWFUL PRACTICE.—It shall be an un18 lawful practice for an employer to unilaterally in19 clude a nondisclosure clause or a nondisparagement 

20 clause that solely benefits the employer in a separa21 tion or settlement agreement. 

22 (c) RIGHT TO REPORT RESERVED.—Notwith23 standing signing (before or after the effective date of this 

24 title) any nondisparagement or nondisclosure clause in25 cluding a clause referred to in subsection (a)(1), an emVerDate Sep 11 2014 20:29 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1521.IH H1521

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1 ployee or applicant retains any right that person would 

2 otherwise have had to report a concern about workplace 

3 harassment, including sexual harassment or another viola4 tion of the law to the Commission, another Federal agency 

5 (including an office of the legislative or judicial branch), 

6 a State or local fair employment practices agency or any 

7 State or local agency, or a law enforcement agency, and 

8 any right that person would otherwise have had to bring 

9 an action in a court of the United States. 

10 (d) ENFORCEMENT.— 

11 (1) ENFORCEMENT POWERS.—With respect to 

12 the administration and enforcement of this section 

13 in the case of a claim alleged by an employee for a 

14 violation of this section— 

15 (A) the Commission shall have the same 

16 powers as the Commission has to administer 

17 and enforce— 

18 (i) title VII of the Civil Rights Act of 

19 1964 (42 U.S.C. 2000e et seq.); or 

20 (ii) sections 302 and 304 of the Gov21 ernment Employee Rights Act of 1991 (42 

22 U.S.C. 2000e–16b and 2000e–16c), 

23 in the case of a claim alleged by such employee 

24 for a violation of such title, or of section 

25 302(a)(1) of the Government Employee Rights 


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1 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)), re2 spectively; 

3 (B) the Librarian of Congress shall have 

4 the same powers as the Librarian of Congress 

5 has to administer and enforce title VII of the 

6 Civil Rights Act of 1964 (42 U.S.C. 2000e et 

7 seq.) in the case of a claim alleged by such em8 ployee for a violation of such title; 

9 (C) the Board (as defined in section 101 of 

10 the Congressional Accountability Act of 1995 (2 

11 U.S.C. 1301)) shall have the same powers as 

12 the Board has to administer and enforce the 

13 Congressional Accountability Act of 1995 (2 

14 U.S.C. 1301 et seq.) in the case of a claim al15 leged by such employee for a violation of section 

16 201(a)(1) of such Act (2 U.S.C. 1311(a)(1)); 

17 (D) the Attorney General shall have the 

18 same powers as the Attorney General has to ad19 minister and enforce— 

20 (i) title VII of the Civil Rights Act of 

21 1964 (42 U.S.C. 2000e et seq.); or 

22 (ii) sections 302 and 304 of the Gov23 ernment Employee Rights Act of 1991 (42 

24 U.S.C. 2000e–16b and 2000e–16c), 


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1 in the case of a claim alleged by such employee 

2 for a violation of such title, or of section 

3 302(a)(1) of the Government Employee Rights 

4 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)), re5 spectively; 

6 (E) the President, the Commission, and 

7 the Merit Systems Protection Board shall have 

8 the same powers as the President, the Commis9 sion, and the Board, respectively, have to ad10 minister and enforce chapter 5 of title 3, 

11 United States Code, in the case of a claim al12 leged by such employee for a violation of section 

13 411 of such title; 

14 (F) the Commission shall have the same 

15 powers as described in subparagraph (A) to ad16 minister and enforce a claim by any employee 

17 who is not otherwise able to seek remedy for a 

18 claim through an enforcement entity described 

19 in subparagraph (A) through (E); and 

20 (G) a court of the United States shall have 

21 the same jurisdiction and powers as the court 

22 has to enforce— 

23 (i) title VII of the Civil Rights Act of 

24 1964 (42 U.S.C. 2000e et seq.) in the case 

25 of a claim alleged by such employee for a 


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1 violation of such title or in the case of a 

2 claim described in subparagraph (F); 

3 (ii) sections 302 and 304 of the Gov4 ernment Employee Rights Act of 1991 (42 

5 U.S.C. 2000e–16b and 2000e–16c) in the 

6 case of a claim alleged by such employee 

7 for a violation of section 302(a)(1) of such 

8 Act (42 U.S.C. 2000e–16b(a)(1)); 

9 (iii) the Congressional Accountability 

10 Act of 1995 (2 U.S.C. 1301 et seq.) in the 

11 case of a claim alleged by such employee 

12 for a violation of section 201(a)(1) of such 

13 Act (2 U.S.C. 1311(a)(1)); and 

14 (iv) chapter 5 of title 3, United States 

15 Code, in the case of a claim alleged by 

16 such employee for a violation of section 

17 411 of such title. 

18 (2) PROCEDURES AND REMEDIES.—The proce19 dures and remedies applicable to a claim alleged by 

20 an employee for a violation of this section are— 

21 (A) the procedures and remedies applicable 

22 for a violation of title VII of the Civil Rights 

23 Act of 1964 (42 U.S.C. 2000e et seq.) in the 

24 case of a claim alleged by such employee for a 


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1 violation of such title or in the case of a claim 

2 described in paragraph (1)(F); 

3 (B) the procedures and remedies applicable 

4 for a violation of section 302(a)(1) of the Gov5 ernment Employee Rights Act of 1991 (42 

6 U.S.C. 2000e–16b(a)(1)) in the case of a claim 

7 alleged by such employee for a violation of such 

8 section; 

9 (C) the procedures and remedies applicable 

10 for a violation of section 201(a)(1) of the Con11 gressional Accountability Act of 1995 (2 U.S.C. 

12 1311(a)(1)) in the case of a claim alleged by 

13 such employee for a violation of such section; 

14 and 

15 (D) the procedures and remedies applicable 

16 for a violation of section 411 of title 3, United 

17 States Code, in the case of a claim alleged by 

18 such employee for a violation of such section. 

19 (3) OTHER APPLICABLE PROVISIONS.—With re20 spect to a claim alleged by a covered employee (as 

21 defined in section 101 of the Congressional Account22 ability Act of 1995 (2 U.S.C. 1301)) for a violation 

23 of this section, title III of the Congressional Ac24 countability Act of 1995 (2 U.S.C. 1381 et seq.) 

25 shall apply in the same manner as such title applies 


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1 with respect to a claim alleged by such a covered 

2 employee for a violation of section 201(a)(1) of such 

3 Act (2 U.S.C. 1311(a)(1)). 

4 (e) REGULATIONS.— 

5 (1) IN GENERAL.—Except as provided in para6 graphs (2), (3), and (4), the Commission shall have 

7 authority to issue regulations to carry out this sec8 tion. 

9 (2) LIBRARIAN OF CONGRESS.—The Librarian 

10 of Congress shall have authority to issue regulations 

11 to carry out this section with respect to employees 

12 and applicants for employment of the Library of 

13 Congress. 

14 (3) BOARD.—The Board referred to in sub15 section (d)(1)(C) shall have authority to issue regu16 lations to carry out this section, in accordance with 

17 section 304 of the Congressional Accountability Act 

18 of 1995 (2 U.S.C. 1384), with respect to covered 

19 employees, as defined in section 101 of such Act (2 

20 U.S.C. 1301). 

21 (4) PRESIDENT.—The President shall have au22 thority to issue regulations to carry out this section 

23 with respect to covered employees, as defined in sec24 tion 411(c) of title 3, United States Code, and appli25 cants for employment as such employees. 


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1 (f) STATE AND FEDERAL IMMUNITY.— 

2 (1) ABROGATION OF STATE IMMUNITY.—A 

3 State shall not be immune under the 11th Amend4 ment to the Constitution from a suit brought in a 

5 Federal court of competent jurisdiction for a viola6 tion of this section. 

7 (2) WAIVER OF STATE IMMUNITY.— 

8 (A) IN GENERAL.— 

9 (i) WAIVER.—A State’s receipt or use 

10 of Federal financial assistance for any pro11 gram or activity of a State shall constitute 

12 a waiver of sovereign immunity, under the 

13 11th Amendment to the Constitution or 

14 otherwise, to a suit brought by an em15 ployee or applicant for employment of that 

16 program or activity under this section for 

17 a remedy authorized under subsection (d). 

18 (ii) DEFINITION.—In this paragraph, 

19 the term ‘‘program or activity’’ has the 

20 meaning given the term in section 606 of 

21 the Civil Rights Act of 1964 (42 U.S.C. 

22 2000d–4a). 

23 (B) EFFECTIVE DATE.—With respect to a 

24 particular program or activity, subparagraph 

25 (A) applies to conduct occurring on or after the 


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1 day, after the date of enactment of this Act, on 

2 which a State first receives or uses Federal fi3 nancial assistance for that program or activity. 

4 (3) REMEDIES AGAINST STATE OFFICIALS.—An 

5 official of a State may be sued in the official capac6 ity of the official by any employee or applicant for 

7 employment who has complied with the applicable 

8 procedures of subsection (d), for equitable relief that 

9 is authorized under this section. In such a suit the 

10 court may award to the prevailing party those costs 

11 authorized by section 722 of the Revised Statutes 

12 (42 U.S.C. 1988). 

13 (4) REMEDIES AGAINST THE UNITED STATES

14 AND THE STATES.—Notwithstanding any other pro15 vision of this title, in an action or administrative 

16 proceeding against the United States or a State for 

17 a violation of this section, remedies (including rem18 edies at law and in equity, and interest) are avail19 able for the violation to the same extent as the rem20 edies are available for a violation of title VII of the 

21 Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) 

22 by a private entity, except that— 

23 (A) punitive damages are not available; 

24 and 


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1 (B) compensatory damages are available to 

2 the extent specified in section 1977A(b) of the 

3 Revised Statutes (42 U.S.C. 1981a(b)). 

4 SEC. 104. CONFIDENTIAL TIP-LINE ADDRESSING EMPLOY5 ERS WITH WIDESPREAD AND SYSTEMIC 

6 WORKPLACE HARASSMENT. 

7 (a) CONFIDENTIAL TIP-LINE ESTABLISHED.— 

8 (1) IN GENERAL.—Not later than 1 year after 

9 the date of enactment of this Act, the Commission 

10 shall establish a confidential tip-line that supple11 ments the Commission’s existing process for submit12 ting a Charge of Discrimination, and that has the 

13 characteristics described in paragraph (2), to— 

14 (A) receive, log, and acknowledge the re15 ceipt of reports by employees, applicants, by16 standers, or other individuals who attest that 

17 they have experienced or witnessed workplace 

18 harassment, including sexual assault and other 

19 forms of sexual harassment; 

20 (B) provide informational materials to re21 porting individuals described in subparagraph 

22 (A); and 

23 (C) make available reports described in 

24 subparagraph (A) to— 

25 (i) the Commission; and 


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1 (ii) Commission-approved fair employ2 ment practices agencies for potential inves3 tigation. 

4 (2) OPERATION OF THE TIP-LINE.—The Com5 mission shall ensure that the tip-line established 

6 under this section will— 

7 (A) explicitly notify reporting individuals 

8 that the tip-line does not allow anonymous re9 porting, but does allow the submission of con10 fidential reports, independent of a Charge of 

11 Discrimination or a Federal or State adminis12 trative complaint, by those employees or appli13 cants who have experienced workplace harass14 ment, including sexual assault and other forms 

15 of sexual harassment, and by those employees, 

16 applicants, bystanders, or other individuals who 

17 have witnessed such conduct; 

18 (B) provide an option for reporting individ19 uals to make a report that would not identify 

20 individual employees, but would identify the en21 tity, employer, division, or subdivision respon22 sible for the workplace harassment, including 

23 sexual assault and other forms of sexual harass24 ment; 


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1 (C) educate reporting individuals about 

2 how to preserve the right to make any reports, 

3 complaints, or charges that the individuals 

4 would otherwise have been eligible to make, 

5 independent of any report to the tip-line, in6 cluding— 

7 (i) the right of the reporting indi8 vidual to file a Charge of Discrimination 

9 that will result in the Commission or a 

10 Commission-approved fair employment 

11 practices agency taking action (and the 

12 risk of losing that right if the reporting in13 dividual fails to file a timely Charge of 

14 Discrimination); and 

15 (ii) a clear explanation of any dead16 lines or limitations periods; 

17 (D) instruct reporting individuals about 

18 how to file a Charge of Discrimination with the 

19 Commission and encourage reporting individ20 uals to file a Charge of Discrimination in order 

21 to allow the Commission to more effectively in22 vestigate the workplace harassment; 

23 (E) emphasize that reports to the confiden24 tial tip-line— 


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1 (i) will not prompt individualized in2 vestigations, except in the limited cir3 cumstances described in clause (ii), sub4 paragraph (I), and subsection (b), and 

5 such investigations will fully comport with 

6 applicable due process requirements; 

7 (ii) will be monitored by the Commis8 sion and Commission-approved fair em9 ployment practices agencies to identify 

10 trends and determine whether investiga11 tions should be undertaken, for instance, 

12 when the Commission has received multiple 

13 complaints regarding a particular employer 

14 or there is evidence of a broader pattern or 

15 practice of workplace harassment; 

16 (iii) shall not be discoverable in civil 

17 cases, unless the reporting individual 

18 waives the confidentiality of the submitted 

19 reports; and 

20 (iv) shall not be shared with other 

21 Federal agencies; 

22 (F) engage fair employment practices 

23 agencies at the State and local level to apply 

24 and be thoroughly vetted and reviewed for ap25 proved access to the confidential tip-line; 


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1 (G) share information from the tip-line, in2 cluding information on opened investigations, 

3 only between and among participating approved 

4 fair employment practices agencies and the 

5 Commission to facilitate coordination and avoid 

6 conflicts in investigations and resolutions; 

7 (H) offer an option to each reporting indi8 vidual, at the time of reporting, to elect to be 

9 informed, to the extent practicable, if the indi10 vidual’s report leads to an investigation, so that 

11 the reporting individual may choose to provide 

12 further information or participate in any result13 ing investigation; and 

14 (I) protect the identity of individuals mak15 ing reports and employers by making such re16 ports confidential within the tip-line and only 

17 available to the Commission and Commission18 approved fair employment practices agencies, 

19 and require that information obtained can be 

20 used only for the purpose of investigation re21 lated to the submitted complaint or complaints, 

22 in full compliance with applicable due process 

23 requirements. 

24 (b) CHARGE OF DISCRIMINATION.—In the event that 

25 a member of the Commission determines that information 


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1 received from the tip-line warrants an investigation, the 

2 member may initiate an investigation by filing a Charge 

3 of Discrimination in accordance with section 706 of the 

4 Civil Rights Act of 1964 (42 U.S.C. 2000e–5). 

5 (c) EDUCATION ABOUT THE TIP-LINE.—The Com6 mission shall disseminate information and educate the 

7 public about the tip-line established under this section. 

8 (d) UNLAWFUL PRACTICES WITH RESPECT TO THE

9 TIP-LINE.— 

10 (1) OTHER UNLAWFUL PRACTICE.—It shall be 

11 unlawful to engage in any unlawful employment 

12 practice described in section 704 of the Civil Rights 

13 Act of 1964 (42 U.S.C. 2000e–3) with respect to the 

14 tip-line under this section, including contacting or 

15 making threats to contact law enforcement authori16 ties, such as the police, immigration officials, or 

17 other officials, with respect to an employee or appli18 cant because that employee or applicant has made a 

19 charge, testified, assisted, or participated in any 

20 manner in an investigation, proceeding or hearing 

21 under this section. 

22 (2) CONFIDENTIALITY.—It shall be unlawful 

23 for any officer or employee of the Commission, or 

24 any Commission-approved fair employment practices 

25 agencies, to make public in any manner whatever 


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1 any information obtained by the Commission pursu2 ant to its authority under this section, prior to insti3 tution of any proceeding under section 706 of the 

4 Civil Rights Act of 1964 (42 U.S.C. 2000e–5), ex5 cept that the Commission, or any Commission-ap6 proved fair employment practices agency, shall offer 

7 information to reporting individuals in accordance 

8 with this section. 

9 (3) ENFORCEMENT.—The enforcement provi10 sions described in section 4(d) shall apply in the 

11 same manner to the enforcement of a violation de12 scribed in paragraph (1) or (2). 

13 (e) EFFECTIVE DATE.—This section shall first take 

14 effect on the first day of the first fiscal year for which 

15 $1,500,000 is appropriated to carry out this section. 

16 (f) ANNUAL MINIMUM.—The Commission shall not 

17 be required to implement this section in any fiscal year 

18 for which less than $1,000,000 is appropriated to carry 

19 out this section. 

20 SEC. 105. SEC FILINGS AND MATERIAL DISCLOSURES AT 

21 PUBLIC COMPANIES. 

22 (a) DEFINITIONS.—In this section— 

23 (1) the term ‘‘Form 10–K’’ means the form de24 scribed in section 249.310 of title 17, Code of Fed25 eral Regulations, or any successor regulation; and 


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1 (2) the term ‘‘issuer’’ has the meaning given 

2 the term in section 3(a) of the Securities Exchange 

3 Act of 1934 (15 U.S.C. 78c(a)). 

4 (b) FINDINGS.—Congress finds that— 

5 (1) shareholders and the public should know 

6 whether corporations— 

7 (A) are expending company funds to re8 solve, settle, or litigate claims of workplace har9 assment, including sexual harassment; and 

10 (B) along with the executives and man11 agers of those corporations— 

12 (i) are complying with prohibitions 

13 against workplace harassment, including 

14 sexual harassment; and 

15 (ii) facilitate a culture of silence, dis16 respect, intimidation, and abuse that nega17 tively impacts the health and safety of the 

18 workers of those corporations and the 

19 value of those corporations; and 

20 (2) the requirements of this section will— 

21 (A) establish necessary transparency and 

22 accountability; and 

23 (B) provide an incentive for corporations 

24 to— 


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1 (i) promptly address workplace har2 assment, including sexual harassment, as 

3 that misconduct occurs; and 

4 (ii) foster a culture in which work5 place harassment is not protected and does 

6 not occur. 

7 (c) INFORMATION REQUIRED.—Not later than 1 year 

8 after the date of enactment of this Act, the Securities and 

9 Exchange Commission shall promulgate a regulation that 

10 requires any issuer that is required to submit an annual 

11 report using Form 10–K to include in any such submis12 sion— 

13 (1) during the period covered by the submis14 sion— 

15 (A) with respect to workplace harassment, 

16 including sexual harassment, and retaliation for 

17 reporting, resisting, opposing, or assisting in 

18 the investigation of workplace harassment— 

19 (i) the number of settlements reached 

20 by the issuer as a signatory or when the 

21 issuer is a beneficiary of a release of 

22 claims; and 

23 (ii) whether any judgments or awards 

24 (including awards through arbitration or 

25 administrative proceedings) were entered 


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1 against the issuer in part or in whole, or 

2 any payments made in connection with a 

3 release of claims; and 

4 (B) the total amount paid by the issuer or 

5 another party as a result of— 

6 (i) the settlements described in sub7 paragraph (A)(i); and 

8 (ii) the judgments described in sub9 paragraph (A)(ii); and 

10 (2) information regarding whether, in the ag11 gregate, including the period covered by the submis12 sion, there have been three or more settlements 

13 reached by, or judgments against, the issuer with re14 spect to workplace harassment, including sexual har15 assment, or retaliation for reporting, resisting, op16 posing, or assisting in the investigation of workplace 

17 harassment that relate to a particular individual em18 ployed by the issuer, without identifying that indi19 vidual by name. 

20 SEC. 106. PROFESSIONAL TRAINING, INCLUDING BY21 STANDER TRAINING, AND PUBLIC EDU22 CATION CAMPAIGNS. 

23 (a) COMMISSION AUTHORITY.—The Commission 

24 shall have the authority to— 


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1 (1) reasonably adjust the fees the Commission 

2 charges for any education, technical assistance, or 

3 training the Commission offers in accordance with 

4 section 705(j)(1) of the Civil Rights Act of 1964 (42 

5 U.S.C. 2000e–4(j)(1)); 

6 (2) use the materials developed by the Commis7 sion for any education, technical assistance, or train8 ing offered by the Commission in accordance with 

9 section 705(j)(1) of the Civil Rights Act of 1964 in 

10 any education and outreach activities carried out by 

11 the Commission; and 

12 (3) use funds from the EEOC Education, Tech13 nical Assistance, and Training Revolving Fund, es14 tablished under section 705(k) of the Civil Rights 

15 Act of 1964, to pay the full salaries of any Commis16 sion employees that develop and administer any edu17 cation, technical assistance, or training programs of18 fered by the Commission. 

19 (b) WORKPLACE TRAINING.— 

20 (1) IN GENERAL.—The Commission shall pro21 vide for the development and dissemination of work22 place training programs and information regarding 

23 workplace harassment, including sexual harassment. 

24 (2) CONTENTS OF TRAINING.—The training 

25 provided by the Commission under this subsection to 


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1 managers and nonmanagers shall be consistent with 

2 the findings of the Commission, on matters includ3 ing— 

4 (A) what constitutes workplace harass5 ment, including sexual harassment; 

6 (B) the rights of individuals with respect 

7 to workplace harassment and how to report 

8 workplace harassment; 

9 (C) how individuals, including bystanders, 

10 who encounter workplace harassment can inter11 vene or report the harassment; and 

12 (D) how employers and managers can pre13 vent workplace harassment, including sexual 

14 harassment, from occurring in the workplace. 

15 (3) CONTENTS OF INFORMATION.—In providing 

16 information under this subsection, the Commission 

17 shall— 

18 (A) prepare and distribute information 

19 that is consistent with the findings of the Com20 mission; 

21 (B) develop and disseminate a public serv22 ice advertisement campaign that— 

23 (i) distributes information with re24 spect to the matters described in para25 graph (2); and 


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1 (ii) advertises the confidential com2 plaint database established under section 

3 5. 

4 (c) EFFECTIVE DATE.—This section shall not take 

5 effect in any fiscal year for which less than $1,500,000 

6 is appropriated to carry out this section. 

7 TITLE II—MODIFICATION OF TAX 

8 TREATMENT OF AMOUNTS 

9 RELATED TO EMPLOYMENT 

10 DISCRIMINATION AND WORK11 PLACE HARASSMENT 

12 SEC. 201. TAX TREATMENT OF AMOUNTS RELATED TO 

13 JUDGMENTS. 

14 (a) DENIAL OF DEDUCTION.— 

15 (1) IN GENERAL.—Part IX of subchapter B of 

16 chapter 1 of the Internal Revenue Code of 1986 is 

17 amended by adding at the end the following new sec18 tion: 

19 ‘‘SEC. 280I. AMOUNTS RELATED TO JUDGMENTS WITH RE20 SPECT TO WORKPLACE HARASSMENT, IN21 CLUDING SEXUAL HARASSMENT. 

22 ‘‘No deduction shall be allowed under this chapter for 

23 amounts paid or incurred by the taxpayer— 


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1 ‘‘(1) pursuant to any judgment or award in liti2 gation related to workplace harassment, including 

3 sexual harassment, or 

4 ‘‘(2) for expenses and attorney’s fees in connec5 tion with the litigation resulting in the judgment or 

6 award described in paragraph (1) (other than ex7 penses or attorney’s fees paid by the workplace har8 assment plaintiff or claimant), or for any insurance 

9 covering the defense or liability of the underlying 

10 claims with respect to such litigation.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions for part IX of subchapter B of chapter 1 of 

13 such Code is amended by adding at the end the fol14 lowing new item: 

‘‘Sec. 280I. Amounts related to judgments with respect to workplace harassment, including sexual harassment.’’. 

15 (3) CONFORMING AMENDMENT.—Section 162 

16 of such Code is amended by striking subsection (q). 

17 (4) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply to amounts paid or in19 curred in taxable years beginning after the date of 

20 the enactment of this Act. 

21 (b) EXCLUSION FROM INCOME.— 

22 (1) IN GENERAL.—Part III of subchapter B of 

23 chapter 1 of the Internal Revenue Code of 1986 is 


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1 amended by inserting after section 139G the fol2 lowing new section: 

3 ‘‘SEC. 139H. AMOUNTS RECEIVED IN CONNECTION WITH 

4 JUDGMENTS, AWARDS, AND SETTLEMENTS 

5 WITH RESPECT TO WORKPLACE HARASS6 MENT. 

7 ‘‘Gross income shall not include any amount received 

8 in connection with a judgment or award in, or a settlement 

9 of— 

10 ‘‘(1) a claim related to workplace harassment, 

11 including sexual harassment or other unlawful dis12 crimination, or 

13 ‘‘(2) any other claim of unlawful discrimination 

14 (as defined by section 62(e)). 

15 The preceding sentence shall not include any employment 

16 discrimination compensation to which section 1302 ap17 plies.’’. 

18 (2) CLERICAL AMENDMENT.—The table of sec19 tions for part III of subchapter B of chapter 1 of 

20 such Code is amended by inserting after the item re21 lating to section 139G the following new item: 

‘‘Sec. 139H. Amounts received in connection with judgments, awards, and settlements with respect to workplace harassment.’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall apply to amounts received in 


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1 taxable years beginning after the date of the enact2 ment of this Act. 

3 SEC. 202. LIMITATION ON TAX BASED ON INCOME AVER4 AGING FOR COMPENSATION RECEIVED ON 

5 ACCOUNT OF CERTAIN UNLAWFUL EMPLOY6 MENT DISCRIMINATION. 

7 (a) IN GENERAL.—Part I of subchapter Q of chapter 

8 1 of the Internal Revenue Code of 1986 (relating to in9 come averaging) is amended by adding at the end the fol10 lowing new section: 

11 ‘‘SEC. 1302. INCOME FROM COMPENSATION RECEIVED ON 

12 ACCOUNT OF CERTAIN UNLAWFUL EMPLOY13 MENT DISCRIMINATION. 

14 ‘‘(a) GENERAL RULE.—In the case of any employ15 ment discrimination compensation received during any 

16 taxable year, the tax imposed by this chapter for such tax17 able year with respect to such compensation shall not ex18 ceed the sum of— 

19 ‘‘(1) the tax which would be so imposed if— 

20 ‘‘(A) no amount of such compensation 

21 were included in gross income for such year, 

22 and 

23 ‘‘(B) no deduction were allowed for such 

24 year for expenses otherwise allowable as a de25 duction to the taxpayer for such year in connecVerDate Sep 11 2014 20:29 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H1521.IH H1521

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1 tion with making or prosecuting any claim of 

2 unlawful employment discrimination by or on 

3 behalf of the taxpayer, plus 

4 ‘‘(2) the product of— 

5 ‘‘(A) the combined number of years in the 

6 backpay period and the foregone compensation 

7 period, and 

8 ‘‘(B) the amount by which the tax deter9 mined under paragraph (1) would increase if 

10 the sum of— 

11 ‘‘(i) the average of the average annual 

12 net employment discrimination compensa13 tion in the backpay period, and 

14 ‘‘(ii) the average of the average an15 nual net employment discrimination com16 pensation in the foregone compensation pe17 riod, 

18 were included in gross income for such year. 

19 ‘‘(b) DEFINITIONS.—For purposes of this section— 

20 ‘‘(1) EMPLOYMENT DISCRIMINATION COM21 PENSATION.—The term ‘employment discrimination 

22 compensation’ means any backpay or foregone com23 pensation receivable (whether as lump sums or peri24 odic payments) on account of a judgment or settle25 ment resulting from a claim of unlawful discriminaVerDate Sep 11 2014 20:29 Mar 20, 2019 Jkt 089200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H1521.IH H1521

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1 tion (as defined in section 62(e)) in violation of law 

2 which relates to employment. 

3 ‘‘(2) BACKPAY.—The term ‘backpay’ means 

4 amounts which are includible in gross income for the 

5 taxable year as compensation which is attributable 

6 to services performed (or which would have been 

7 performed but for the violation of law described in 

8 paragraph (1)) as an employee, former employee, or 

9 prospective employee in years before such taxable 

10 year for the taxpayer’s employer, former employer, 

11 or prospective employer. 

12 ‘‘(3) FOREGONE COMPENSATION.—The term 

13 ‘foregone compensation’ means amounts which are 

14 includible in gross income for the taxable year as 

15 compensation which is attributable to services which 

16 would have been performed in years after such tax17 able year but for the violation of law described in 

18 paragraph (1). 

19 ‘‘(4) BACKPAY PERIOD.—The term ‘backpay pe20 riod’ means the period during which services de21 scribed in paragraph (2) were performed or would 

22 have been performed but for the violation of law de23 scribed in paragraph (1). If such period is not equal 

24 to a whole number of taxable years, such period 


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1 shall be increased to the next highest number of 

2 whole taxable years. 

3 ‘‘(5) FOREGONE COMPENSATION PERIOD.—The 

4 term ‘foregone compensation period’ means the pe5 riod during which services described in paragraph 

6 (3) would have been performed but for the violation 

7 of law described in paragraph (1). If such period is 

8 not equal to a whole number of taxable years, such 

9 period shall be increased to the next highest number 

10 of whole taxable years. 

11 ‘‘(6) AVERAGE ANNUAL NET EMPLOYMENT DIS12 CRIMINATION COMPENSATION.—The term ‘average 

13 annual net employment discrimination compensation’ 

14 with respect to any period means the amount equal 

15 to— 

16 ‘‘(A) the excess of— 

17 ‘‘(i) employment discrimination com18 pensation attributable to such period, over 

19 ‘‘(ii) the amount of the deductions de20 scribed in subsection (a)(1)(B), divided by 

21 ‘‘(B) the total number of years in the 

22 backpay period and the foregone compensation 

23 period.’’. 

24 (b) CLERICAL AMENDMENT.—The table of sections 

25 for part I of subchapter Q of chapter 1 of the Internal 


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1 Revenue Code of 1986 is amended by inserting after sec2 tion 1301 the following new item: 

‘‘Sec. 1302. Income from compensation received on account of certain unlawful 

employment discrimination.’’. 

3 (c) INCOME AVERAGING NOT TO INCREASE ALTER4 NATIVE MINIMUM TAX LIABILITY.—Section 55(c) of the 

5 Internal Revenue Code of 1986 is amended by redesig6 nating paragraph (3) as paragraph (4) and by inserting 

7 after paragraph (2) the following new paragraph: 

8 ‘‘(3) COORDINATION WITH INCOME AVERAGING

9 FOR AMOUNTS RECEIVED ON ACCOUNT OF EMPLOY10 MENT DISCRIMINATION.—Solely for purposes of this 

11 section, section 1302 shall not apply in computing 

12 the regular tax liability.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to amounts paid or incurred in tax15 able years beginning after the date of the enactment of 

16 this Act. 

Æ 


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