I 

115TH CONGRESS 

1ST SESSION H. R. 2275 

To require employers to provide pay stubs, codify the Executive order relating 

to Government contracting, provide greater oversight of executive compensation and restrictions on sales of stocks, clarify the definition of 

a supervisor, and enhance penalties for violations of workforce safety 

and standards. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 1, 2017 

Mr. POLIS introduced the following bill; which was referred to the Committee 

on Education and the Workforce, and in addition to the Committees on 

Financial Services, and Oversight and Government Reform, 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 require employers to provide pay stubs, codify the Executive order relating to Government contracting, provide 

greater oversight of executive compensation and restrictions on sales of stocks, clarify the definition of a supervisor, and enhance penalties for violations of workforce 

safety and standards. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Giving Workers a Fair 

3 Shot Act’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—EMPLOYER TRANSPARENCY 

Sec. 101. Pay stub provision requirement. 

Sec. 102. Enforcement. 

Sec. 103. Effective date. 

TITLE II—THE RE-EMPOWERMENT OF SKILLED AND PROFESSIONAL EMPLOYEES AND CONSTRUCTION TRADEWORKERS 

Sec. 201. Definition of supervisor. 

TITLE III—ADEQUATE LABOR LAW PUNISHMENT AND 

PENALTIES 

Sec. 301. Penalty enhancements. 

TITLE IV—FIRST CONTRACT ARBITRATION 

Sec. 401. Facilitating initial collective bargaining agreements. 

TITLE V—SHAREHOLDER EMPOWERMENT AND EXECUTIVE 

RESPONSIBILITY 

Sec. 501. Shareholder votes on executive compensation. 

Sec. 502. CEO and chairman of the board of directors required to be different 

individuals. 

Sec. 503. Extension of certain requirements for directors and officers. 

TITLE VI—PREVENTION OF TAXPAYER DOLLARS BEING USED 

FOR LABOR BUSTING 

Sec. 601. Limitation on the allowability of costs. 


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1 TITLE I—EMPLOYER 

2 TRANSPARENCY 

3 SEC. 101. PAY STUB PROVISION REQUIREMENT. 

4 Section 11 of the Fair Labor Standards Act of 1938 

5 (29 U.S.C. 211) is amended by adding at the end the fol6 lowing new subsection: 

7 ‘‘(e) Every employer subject to subsection (c) shall 

8 provide to each employee, in conjunction with each pay9 ment of compensation to that employee, a document 

10 itemizing— 

11 ‘‘(1) the total hours worked during the pay pe12 riod; 

13 ‘‘(2) the total pay during the pay period; 

14 ‘‘(3) the hourly rate of pay, or— 

15 ‘‘(A) if the employee is paid a salary, the 

16 hourly equivalent rate of pay; 

17 ‘‘(B) if the employee is paid a piece rate, 

18 the number of piece rate units earned, the ap19 plicable piece rate, and total amount paid in ac20 cordance with such piece rate; or 

21 ‘‘(C) if the employee receives commissions 

22 or is paid on the basis of any other type of rate, 

23 the total amount paid in such commissions or 

24 in accordance with such rate; 


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1 ‘‘(4) the total amount and rate of any overtime 

2 pay or, in the case of an employee employed at piece 

3 rate, the piece rate paid for each such overtime 

4 hour; 

5 ‘‘(5) the total amounts of earned, used, and 

6 available paid leave, and any expiration dates associ7 ated with such leave; 

8 ‘‘(6) the source and amount of each deduction 

9 from total pay, including an indication of whether 

10 such deduction is taxable or non-taxable; 

11 ‘‘(7) whether the employee is— 

12 ‘‘(A) exempt from the minimum wage re13 quirements under section 6(a); 

14 ‘‘(B) exempt from the overtime require15 ments under section 7; and 

16 ‘‘(C) if applicable, considered by the em17 ployer to be an executive, administrative, pro18 fessional, or outside sales employee; and 

19 ‘‘(8) such additional information relating to 

20 such compensation that the Secretary may require.’’. 

21 SEC. 102. ENFORCEMENT. 

22 Section 16(e)(2) of the Fair Labor Standards Act of 

23 1938 (29 U.S.C. 216(e)(2)) is amended— 

24 (1) by striking ‘‘(2) Any person’’ and inserting 

25 ‘‘(2)(A) Any person’’; and 


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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(B) Any person who violates the provisions of sec4 tion 11(e) of this Act shall be subject to a civil penalty 

5 of— 

6 ‘‘(i) not more than $1,000 per day the docu7 ment is not provided to the employee; or 

8 ‘‘(ii) not more than $100 per day the person 

9 fails to provide a new document to the employee 

10 that— 

11 ‘‘(I) contains any item or items described 

12 in paragraphs (1) through (8) of that sub13 section that was missing in the document as 

14 originally provided; or 

15 ‘‘(II) corrects any such item or items that 

16 was incorrect as originally provided.’’. 

17 SEC. 103. EFFECTIVE DATE. 

18 The amendments made by this title shall take effect 

19 with respect to compensation paid after the date that is 

20 1 year after the date of the enactment of this Act. 


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1 TITLE II—THE RE-EMPOWER2 MENT OF SKILLED AND PRO3 FESSIONAL EMPLOYEES AND 

4 CONSTRUCTION TRADEWORK5 ERS 

6 SEC. 201. DEFINITION OF SUPERVISOR. 

7 Section 2(11) of the National Labor Relations Act 

8 (29 U.S.C. 152(11)) is amended— 

9 (1) by inserting ‘‘and for a majority of the indi10 vidual’s worktime’’ after ‘‘interest of the employer’’; 

11 (2) by striking ‘‘assign,’’; and 

12 (3) by striking ‘‘or responsibility to direct 

13 them,’’. 

14 TITLE III—ADEQUATE LABOR 

15 LAW PUNISHMENT AND PEN16 ALTIES 

17 SEC. 301. PENALTY ENHANCEMENTS. 

18 (a) NATIONAL LABOR RELATIONS ACT.— 

19 (1) BACKPAY.—Section 10(c) of the National 

20 Labor Relations Act (29 U.S.C. 160(c)) is amended 

21 by striking ‘‘And provided further,’’ and inserting 

22 ‘‘Provided further, That if the Board finds that an 

23 employer has committed a violation of section 8(a) 

24 that results in the discharge of an employee or other 

25 serious economic loss to an employee, the Board 


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1 shall award the employee back pay and an additional 

2 amount as liquidated damages equal to 2 times the 

3 amount of such back pay, without any reduction (in4 cluding any reduction based on the employee’s in5 terim earnings or failure to earn interim earnings): 

6 Provided further,’’. 

7 (2) PENALTY FOR INTERFERING WITH THE NA8 TIONAL LABOR RELATIONS BOARD.—Section 12 of 

9 the National Labor Relations Act (29 U.S.C. 162) 

10 is amended by striking all that follows ‘‘shall be’’ 

11 and inserting ‘‘fined under title 18, United States 

12 Code, or imprisoned for not more than three years, 

13 or both.’’. 

14 (b) FAIR LABOR STANDARDS ACT.—Section 16(a) of 

15 the Fair Labor Standards Act of 1938 (29 U.S.C. 216(a)) 

16 is amended— 

17 (1) by striking ‘‘not more than six months’’ and 

18 inserting ‘‘not more than three years’’; and 

19 (2) by striking ‘‘except for an offense’’ and in20 serting ‘‘except for an offense: that denies an em21 ployee more than $1,000 in minimum wages or over22 time compensation, or both, in a 12-month period; 

23 that subjects such person to a civil penalty under 

24 subsection (e)(1)(A)(ii); or that is’’. 

25 (c) OCCUPATIONAL SAFETY AND HEALTH ACT.— 


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1 (1) VIOLATION CAUSING OR SIGNIFICANTLY

2 CONTRIBUTING TO SERIOUS ILLNESS, SERIOUS IN3 JURY, OR DEATH TO EMPLOYEE.—Section 17(e) of 

4 the Occupational Safety and Health Act of 1970 (29 

5 U.S.C. 666(e)) is amended— 

6 (A) by striking ‘‘willfully’’ and inserting 

7 ‘‘knowingly’’; 

8 (B) by striking ‘‘caused death to’’ and in9 serting ‘‘causes or significantly contributes to 

10 the serious illness or serious injury (as those 

11 terms are defined in section 519(b)(6) of the 

12 Federal Food, Drug, and Cosmetic Act) or 

13 death, of’’; 

14 (C) by striking ‘‘punished by a fine of not 

15 more than $10,000 or by imprisonment for not 

16 more than six months, or by both’’ and insert17 ing ‘‘fined under title 18, United States Code, 

18 or imprisoned for not more than 10 years, or 

19 both’’; and 

20 (D) by striking ‘‘such person, punishment 

21 shall be by a fine of not more than $20,000 or 

22 by imprisonment for not more than one year, or 

23 by both’’ and inserting ‘‘such employer, the em24 ployer shall be fined under title 18, United 


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1 States Code, or imprisoned for not more than 

2 20 years, or both’’. 

3 (2) PENALTY FOR DISCHARGE OR DISCRIMINA4 TION AGAINST EMPLOYEE FOR EXERCISE OF

5 RIGHTS.—Section 17 of the Occupational Safety and 

6 Health Act of 1970 (29 U.S.C. 666) is amended by 

7 adding at the end the following: 

8 ‘‘(m) PENALTIES FOR DISCHARGE OR DISCRIMINA9 TION AGAINST EMPLOYEE FOR EXERCISE OF RIGHTS.— 

10 In addition to any disposition under section 11(c), any em11 ployer who violates section 11(c)(1) shall be punished as 

12 follows: 

13 ‘‘(1) FIRST VIOLATION.—For the first such vio14 lation, the employer shall be fined not more than 

15 $50,000. 

16 ‘‘(2) SECOND OR SUBSEQUENT VIOLATION.—If 

17 the employer commits such a violation after receiv18 ing a penalty under paragraph (1), the employer 

19 shall be fined not less than $20,000 and not more 

20 than $200,000. 

21 ‘‘(3) VIOLATION CAUSING OR SIGNIFICANTLY

22 CONTRIBUTING TO SERIOUS ILLNESS, SERIOUS IN23 JURY, OR DEATH.—Paragraphs 1 and 2 notwith24 standing, if such violation causes or significantly 

25 contributes to a serious illness or serious injury (as 


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1 those terms are defined in section 519(b)(6) of the 

2 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

3 360i)) or death, the employer shall be fined under 

4 title 18, United States Code, or imprisoned for not 

5 more than 10 years, or both.’’. 

6 (d) MIGRANT AND SEASONAL AGRICULTURAL WORK7 ER PROTECTION ACT.—Section 501 of the Migrant and 

8 Seasonal Agricultural Worker Protection Act (29 U.S.C. 

9 1851) is amended— 

10 (1) in subsection (a) by striking ‘‘not more than 

11 $1,000 or sentenced to prison for a term not to ex12 ceed one year, or both’’ and inserting ‘‘under title 

13 18, United States Code, or imprisoned for not more 

14 than three years, or both’’; and 

15 (2) in subsection (b) by striking ‘‘not more than 

16 $10,000 or sentenced to prison for a term not to ex17 ceed three years, or both’’ and inserting ‘‘under title 

18 18, United States Code, or imprisoned for not more 

19 than six years, or both’’. 

20 (e) FEDERAL MINE SAFETY AND HEALTH ACT.— 

21 Section 110(d) of the Federal Mine Safety and Health Act 

22 of 1977 (30 U.S.C. 820(d)) is amended to read as follows: 

23 ‘‘(d) CRIMINAL PENALTIES.— 

24 ‘‘(1) IN GENERAL.—Whoever, being an oper25 ator, knowingly— 


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1 ‘‘(A) violates a mandatory health or safety 

2 standard, or 

3 ‘‘(B) violates or fails or refuses to comply 

4 with any order issued under section 104 or sec5 tion 107, or any order incorporated in a final 

6 decision issued under this Act (except an order 

7 incorporated in a decision under subsection 

8 (a)(1) or section 105(c)), 

9 shall, upon conviction, be fined not more than 

10 $250,000, or imprisoned for not more than 1 year, 

11 or both, except that if the operator commits the vio12 lation after having been previously convicted of a 

13 violation under this paragraph and if, the operator 

14 knows or has reason to know that such subsequent 

15 violation has the potential to expose a miner to risk 

16 of serious injury, serious illness, or death, the oper17 ator shall, upon conviction, be fined not more than 

18 $1,000,000, or imprisoned for not more than 5 

19 years, or both. 

20 ‘‘(2) SIGNIFICANT RISK OF SERIOUS INJURY, 

21 SERIOUS ILLNESS, OR DEATH.—Whoever, being an 

22 operator, knowingly— 

23 ‘‘(A) tampers with or disables a required 

24 safety device (except with express authorization 

25 from the Secretary), 


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1 ‘‘(B) violates a mandatory health or safety 

2 standard, or 

3 ‘‘(C) violates or fails or refuses to comply 

4 with an order issued under section 104 or 107, 

5 or any order incorporated in a final decision 

6 issued under this Act (except an order incor7 porated in a decision under subsection (a)(1) or 

8 section 105(c)), 

9 and thereby recklessly exposes a miner to significant 

10 risk of serious injury, serious illness, or death, shall, 

11 upon conviction, be fined not more than $1,000,000 

12 or imprisoned for not more than 5 years, or both, 

13 except that if the operator commits the violation 

14 after having been previously convicted of a violation 

15 under this paragraph, the operator shall, upon con16 viction, be fined not more than $2,000,000, or im17 prisoned for not more than 10 years, or both. 

18 ‘‘(3) CRIMINAL PENALTIES FOR RETALIA19 TION.—Whoever knowingly— 

20 ‘‘(A) with the intent to retaliate, interferes 

21 with the lawful employment or livelihood of a 

22 person, or the spouse, sibling, child, or parent 

23 of a person, because any of them provides infor24 mation to an authorized representative of the 

25 Secretary, to a State or local mine safety or 


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1 health officer or official, or to other law en2 forcement officer, in reasonable belief that the 

3 information is true and related to an apparent 

4 health or safety violation, or to an apparent 

5 unhealthful or unsafe condition, policy, or prac6 tice under this Act, or 

7 ‘‘(B) interferes, or threatens to interfere, 

8 with the lawful employment or livelihood of a 

9 person, or the spouse, sibling, child, or parent 

10 of a person, with the intent to prevent any of 

11 them from so providing such information, 

12 shall be fined under title 18 or imprisoned for not 

13 more than 5 years, or both.’’. 

14 TITLE IV—FIRST CONTRACT 

15 ARBITRATION 

16 SEC. 401. FACILITATING INITIAL COLLECTIVE BARGAINING 

17 AGREEMENTS. 

18 Section 8 of the National Labor Relations Act (29 

19 U.S.C. 158) is amended by adding at the end the fol20 lowing: 

21 ‘‘(h) Whenever collective bargaining is for the pur22 pose of establishing an initial agreement following certifi23 cation or recognition, in lieu of subsection (d), the fol24 lowing shall apply: 


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1 ‘‘(1) Not later than 10 days after receiving a 

2 written request for collective bargaining from an in3 dividual or labor organization that has been newly 

4 organized or certified as a representative as de5 scribed in section 9(a), or within such further period 

6 as the parties agree upon, the parties shall meet and 

7 commence to bargain collectively and shall make 

8 every reasonable effort to conclude and sign a collec9 tive bargaining agreement. 

10 ‘‘(2) If after the expiration of the 90-day period 

11 beginning on the date on which bargaining is com12 menced, or such additional period as the parties may 

13 agree upon, the parties have failed to reach an 

14 agreement, either party may notify the Federal Me15 diation and Conciliation Service of the existence of 

16 a dispute and request mediation. Whenever such a 

17 request is received, it shall be the duty of the Service 

18 promptly to put itself in communication with the 

19 parties and to use its best efforts, by mediation and 

20 conciliation, to bring them to agreement. 

21 ‘‘(3) If after the expiration of the 30-day period 

22 beginning on the date on which the request for me23 diation is made under paragraph (2), or such addi24 tional period as the parties may agree upon, the 

25 Service is not able to bring the parties to agreement 


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1 by conciliation, the Service shall refer the dispute to 

2 an arbitration board established in accordance with 

3 such regulations as may be prescribed by the Serv4 ice. The arbitration panel shall render a decision set5 tling the dispute and such decision shall be binding 

6 upon the parties for a period of 2 years, unless 

7 amended during such period by written consent of 

8 the parties.’’. 

9 TITLE V—SHAREHOLDER EM10 POWERMENT AND EXECUTIVE 

11 RESPONSIBILITY 

12 SEC. 501. SHAREHOLDER VOTES ON EXECUTIVE COM13 PENSATION. 

14 (a) ADDITIONAL VOTES REQUIRED IF RESOLUTION

15 ON COMPENSATION NOT APPROVED BY SHARE16 HOLDERS.—Section 14A(a) of the Securities Exchange 

17 Act of 1934 (15 U.S.C. 78n–1(a)) is amended by adding 

18 at the end the following: 

19 ‘‘(4) ADDITIONAL VOTES REQUIRED IF RESOLU20 TION ON COMPENSATION NOT APPROVED BY SHARE21 HOLDERS.— 

22 ‘‘(A) IN GENERAL.—If a resolution re23 quired by paragraph (1) or this subparagraph is 

24 not approved by vote of the shareholders, the 

25 issuer shall call a meeting of the shareholders 


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1 at which there shall be, separately for each ex2 ecutive officer whose compensation was not ap3 proved in the earlier vote, a shareholder vote on 

4 a separate resolution to approve the compensa5 tion disclosed under subparagraph (B) with re6 spect to such executive officer. 

7 ‘‘(B) DISCLOSURE.—The proxy or consent 

8 or authorization for a meeting required by sub9 paragraph (A) shall disclose— 

10 ‘‘(i) pursuant to section 229.402 of 

11 title 17, Code of Federal Regulations, or 

12 any successor thereto, the compensation of 

13 each executive officer whose compensation 

14 will be subject to approval at such meeting; 

15 and 

16 ‘‘(ii) in a clear and simple form in ac17 cordance with regulations to be promul18 gated by the Commission, any arrange19 ments, whether or not written, that each 

20 such executive officer has with the issuer 

21 concerning the terms under which any type 

22 of compensation may be earned by or 

23 awarded to the executive officer, including 

24 in the future, unless such arrangements 

25 are disclosed under clause (i). 


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1 ‘‘(C) TIMING OF VOTES.— 

2 ‘‘(i) INITIAL VOTE.—The vote on the 

3 initial resolution required by subparagraph 

4 (A) with respect to an executive officer 

5 shall occur not later than the end of the 

6 third quarter of the same fiscal year of the 

7 issuer in which the vote on the resolution 

8 required by paragraph (1) occurs. 

9 ‘‘(ii) SECOND VOTE.—If the initial 

10 resolution required by subparagraph (A) 

11 with respect to an executive officer is not 

12 approved by the shareholders, the vote on 

13 the second resolution required by such sub14 paragraph with respect to such executive 

15 officer shall occur not later than the date 

16 that is 90 days after the vote on the initial 

17 resolution required by such subparagraph 

18 with respect to such executive officer. 

19 ‘‘(iii) SUBSEQUENT VOTES.—If the 

20 second resolution required by subpara21 graph (A) with respect to an executive offi22 cer, or any subsequent resolution required 

23 by such subparagraph with respect to such 

24 executive officer, is not approved by the 

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1 tion required by such subparagraph with 

2 respect to such executive officer shall occur 

3 not later than the date that is 90 days 

4 after the vote on the previous resolution 

5 required by such subparagraph with re6 spect to such executive officer. 

7 ‘‘(D) INAPPLICABILITY.—Subparagraph 

8 (A) does not apply with respect to an individual 

9 who is no longer an executive officer of the 

10 issuer.’’. 

11 (b) BINDING EFFECT OF VOTES ON FREQUENCY.— 

12 Section 14A(a)(2) of the Securities Exchange Act of 1934 

13 (15 U.S.C. 78n–1(a)(2)) is amended by adding at the end 

14 the following: ‘‘Such votes shall occur not less frequently 

15 than so determined.’’. 

16 (c) RULES OF CONSTRUCTION.—Section 14A(c) of 

17 the Securities Exchange Act of 1934 (15 U.S.C. 78n–1(c)) 

18 is amended— 

19 (1) in paragraph (2), by striking the semicolon 

20 and inserting ‘‘; or’’; 

21 (2) in paragraph (3), by striking ‘‘; or’’ and in22 serting a period; 

23 (3) by redesignating paragraphs (1) through 

24 (3) as subparagraphs (A) through (C), respectively, 


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1 and moving the margins of such subparagraphs 2 

2 ems to the right; 

3 (4) by striking ‘‘RULE OF CONSTRUCTION.— 

4 The shareholder vote referred to in subsections (a) 

5 and (b)’’ and inserting the following: ‘‘RULES OF

6 CONSTRUCTION.— 

7 ‘‘(1) IN GENERAL.—Except for the shareholder 

8 vote required by paragraph (2) of subsection (a), 

9 and except for the requirement of paragraph (4) of 

10 such subsection for a shareholder vote on a subse11 quent resolution after failure of a previous resolution 

12 to be approved by the shareholders, a shareholder 

13 vote required by subsection (a) or (b)’’; and 

14 (5) by striking ‘‘(4) to restrict or limit’’ and in15 serting the following: 

16 ‘‘(2) NO EFFECT ON ABILITY OF SHARE17 HOLDERS TO MAKE PROPOSALS.—A shareholder vote 

18 required by subsection (a) or (b) may not be con19 strued to restrict or limit’’. 

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

21 this section shall apply to an issuer— 

22 (1) with respect to an additional shareholder 

23 vote under paragraph (4) of section 14A(a) of the 

24 Securities Exchange Act of 1934, as added by sub25 section (a) of this section, beginning with the first 


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1 shareholder vote under paragraph (1) of such section 

2 14A(a) that occurs on or after the date that is 1 

3 year after the date of the enactment of this Act; and 

4 (2) with respect to a shareholder vote under 

5 paragraph (2) of such section 14A(a), beginning 

6 with the first such vote that occurs on or after the 

7 date that is 1 year after the date of the enactment 

8 of this Act. 

9 SEC. 502. CEO AND CHAIRMAN OF THE BOARD OF DIREC10 TORS REQUIRED TO BE DIFFERENT INDIVID11 UALS. 

12 (a) IN GENERAL.—The Securities Exchange Act of 

13 1934 (15 U.S.C. 78a et seq.) is amended by inserting after 

14 section 39 the following: 

15 ‘‘SEC. 40. CEO AND CHAIRMAN OF THE BOARD OF DIREC16 TORS REQUIRED TO BE DIFFERENT INDIVID17 UALS. 

18 ‘‘(a) IN GENERAL.—Except as provided in subsection 

19 (b), an issuer that is required to prepare a proxy state20 ment under section 14(a) may not have the same indi21 vidual simultaneously serving in the position of chief exec22 utive officer (or any equivalent position) of such issuer and 

23 chairman of the board of directors (or any equivalent posi24 tion) of such issuer, and an individual may not simulta25 neously serve in both such positions. 


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1 ‘‘(b) TREATMENT OF SMALL CAPITALIZATION COM2 PANIES.—Subsection (a) shall not apply in the case of a 

3 small capitalization company (as defined by the Commis4 sion by regulation) if, by shareholder vote, the share5 holders elect for such subsection not to apply.’’. 

6 (b) CONFORMING AMENDMENT.—The Securities Ex7 change Act of 1934 is further amended by striking section 

8 14B. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply beginning on the date that is 2 

11 years after the date of the enactment of this Act. 

12 SEC. 503. EXTENSION OF CERTAIN REQUIREMENTS FOR DI13 RECTORS AND OFFICERS. 

14 (a) IN GENERAL.—Section 16 of the Securities Ex15 change Act of 1934 (15 U.S.C. 78p) is amended by adding 

16 at the end the following: 

17 ‘‘(h) PERSONS CEASING TO BE DIRECTORS OR OFFI18 CERS.— 

19 ‘‘(1) CONTINUED APPLICABILITY OF REQUIRE20 MENTS.—During the period beginning on the date 

21 on which a person ceases to be a director or officer 

22 described in subsection (a)(1) with respect to an 

23 issuer and ending on the date that is 1 year there24 after, such person shall continue to be subject to 

25 this section (except as provided in paragraph (2)) in 


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1 the same manner and to the same extent as if such 

2 person had not so ceased. 

3 ‘‘(2) PROHIBITION ON SELLING MORE THAN 25

4 PERCENT OF STOCK OF ISSUER.—If a person ceases 

5 to be a director or officer described in subsection 

6 (a)(1) with respect to an issuer, such person may 

7 not, during the period that begins on the first day 

8 of the last full fiscal quarter of the issuer in which 

9 such person is such a director or officer and ends on 

10 the date that is 1 year after the date on which such 

11 person so ceases, sell more than 25 percent of the 

12 equity securities of such issuer (other than an ex13 empted security) that such person owns on the first 

14 day of such period.’’. 

15 (b) CONFORMING AMENDMENT.—Section 16(d) of 

16 the Securities Exchange Act of 1934 (15 U.S.C. 78p(d)) 

17 is amended by striking ‘‘subsection (c)’’ and inserting 

18 ‘‘subsections (c) and (h)(2)’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to a person who ceases to be a 

21 director or officer described in section 16(a)(1) of the Se22 curities Exchange Act of 1934 after the date that is 1 

23 year after the date of the enactment of this Act. 


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1 TITLE VI—PREVENTION OF TAX2 PAYER DOLLARS BEING USED 

3 FOR LABOR BUSTING 

4 SEC. 601. LIMITATION ON THE ALLOWABILITY OF COSTS. 

5 (a) AMENDMENT.—Chapter 43 of division C of sub6 title I of title 41, United States Code, is amended by add7 ing at the end the following new section: 

8 ‘‘§ 4311. Limitation on the allowability of costs 

9 ‘‘(a) IN GENERAL.—Costs incurred by a contractor 

10 relating to any covered activity are not allowable as reim11 bursable costs under a contract entered into by an execu12 tive agency. Such unallowable costs shall be excluded from 

13 any billing, claim, proposal, or disbursement applicable to 

14 any such contract. 

15 ‘‘(b) COVERED ACTIVITIES.—For purposes of sub16 section (a), a covered activity, with respect to a contract 

17 entered into by an executive agency, includes any activity 

18 undertaken to persuade employees of the contractor to ex19 ercise or not to exercise, or concerning the manner of exer20 cising, rights to organize and bargain collectively through 

21 representatives of the employees’ own choosing, and in22 cludes the following: 

23 ‘‘(1) Preparing and distributing materials. 

24 ‘‘(2) Hiring or consulting legal counsel or con25 sultants. 


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1 ‘‘(3) Holding meetings (including paying the 

2 salaries of the attendees at meetings held for this 

3 purpose). 

4 ‘‘(4) Planning or conducting activities by man5 agers, supervisors, or union representatives during 

6 work hours. 

7 ‘‘(c) EXCEPTION.—The costs described in subsection 

8 (a) do not include costs of maintaining satisfactory rela9 tions between the contractor and its employees, including 

10 costs of labor-management committees, employee publica11 tions (other than those undertaken to persuade employees 

12 to exercise or not to exercise, or concerning the manner 

13 of exercising, the right to organize and bargain collec14 tively), and other related activities.’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

16 The table of sections at the beginning of chapter 43 of 

17 division C of subtitle I of title 41, United States Code, 

18 is amended by adding after the item relating to section 

19 4310 the following new item: 

‘‘4311. Limitation on the allowability of costs.’’. 

20 (c) EXISTING FAR APPLICATION.—Section 31.205– 

21 21 of title 48, Code of Federal Regulations (relating to 

22 labor relations costs), shall be considered to implement the 

23 provisions of section 4311 of title 41, United States Code, 


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1 as added by subsection (a), and may be revised as nec2 essary. 

Æ 


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