II

103D CONGRESS

2D SESSION S. 2504

To extend the protections of Federal labor and civil rights laws to parttime, temporary, and leased employees, independent contractors, and

other contingent workers, and to ensure equitable treatment of such

workers.

IN THE SENATE OF THE UNITED STATES

OCTOBER 5 (legislative day, SEPTEMBER 12), 1994

Mr. METZENBAUM (for himself and Mr. SIMON) introduced the following bill;

which was read twice and referred to the Committee on Labor and

Human Resources

A BILL

To extend the protections of Federal labor and civil rights

laws to part-time, temporary, and leased employees, independent contractors, and other contingent workers, and

to ensure equitable treatment of such workers.

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 ‘‘Contingent Workforce

5 Equity Act’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—Congress finds that—
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1 (1) the number of part-time, temporary, leased,

2 and other contingent workers is increasing in num3 bers and as a percentage of the workforce as a

4 whole;

5 (2) Federal personnel practices have contrib6 uted to the increasing use of contingent workers;

7 (3) on average, contingent workers earn sub8 stantially less than full-time workers and are less

9 likely to receive employer-provided health, pension,

10 or other basic benefits;

11 (4) many contingent workers are excluded from

12 coverage under State unemployment insurance laws;

13 (5) many contingent workers are excluded from

14 the basic worker protections of Federal labor and

15 civil rights laws;

16 (6) many employers misclassify their employees

17 as independent contractors to avoid the require18 ments of social security, unemployment insurance,

19 workers’ compensation, and other laws; and

20 (7) contingent workers are entitled to fair

21 wages and benefits, protections under Federal labor

22 and civil rights laws, and coverage under State un23 employment insurance laws, where feasible.

24 (b) PURPOSES.—The purposes of this Act are to—
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1 (1) discourage employers from replacing full2 time positions with part-time, temporary, or other

3 contingent positions as a means of lowering labor

4 costs or avoiding the requirements of Federal or

5 State employment or employment-related laws;

6 (2) extend the protections of Federal labor and

7 civil rights laws to contingent workers; and

8 (3) extend coverage under State unemployment

9 insurance laws to contingent workers, where feasible.

10 TITLE I—WORKER PROTECTIONS

11 SEC. 101. MINIMUM WAGE.

12 Section 6(a)(1) of the Fair Labor Standards Act of

13 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:

14 ‘‘(1) except as otherwise provided in this sec15 tion—

16 ‘‘(A) not less than—

17 ‘‘(i) $4.25 an hour during the period

18 ending on December 31, 1994;

19 ‘‘(ii) $4.85 an hour during the year

20 beginning on January 1, 1995;

21 ‘‘(iii) $5.55 an hour during the year

22 beginning January 1, 1996;

23 ‘‘(iv) $6.20 an hour during the year

24 beginning January 1, 1997; and
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1 ‘‘(v) $6.75 an hour during the year

2 beginning January 1, 1998; and

3 ‘‘(B) with respect to the year beginning on

4 January 1, 1999, and each such succeeding

5 year, not less than the amount applicable under

6 clause (v) of subparagraph adjusted on October

7 1 of the previous year to equal 50 percent of

8 the monthly average hourly earnings for non9 farm, nonsupervisory private workers for the

10 preceding 12 months, as determined by the Bu11 reau of Labor Statistics, rounded to the nearest

12 multiple of $0.05, except that any amount de13 termined under this subparagraph shall not be

14 less than the amount applicable under this

15 paragraph for the preceding year;’’.

16 SEC. 102. EQUAL PAY.

17 Section 6 of the Fair Labor Standards Act (29

18 U.S.C. 206) is amended by adding at the end thereof the

19 following:

20 ‘‘(g)(1) No employer having employees subject to any

21 provisions of this section shall discriminate, within any es22 tablishment in which such employees are employed, be23 tween employees on the basis of employment status by

24 paying wages to part-time or temporary employees in such

25 establishment at a rate less than the rate at which the
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1 employer pays wages to full-time employees in such estab2 lishment for equal work on jobs the performance of which

3 requires equal skill, effort, and responsibility, and which

4 are performed under similar working conditions, except

5 where such payment is made pursuant to—

6 ‘‘(A) a seniority system;

7 ‘‘(B) a merit system;

8 ‘‘(C) a system that measures earnings by quan9 tity or quality of production; or

10 ‘‘(D) a differential based on any other factor

11 other than employment status.

12 An employer who is paying a wage rate differential in vio13 lation of this subsection shall not, in order to comply with

14 the provisions of this subsection, reduce the wage rate of

15 any employee.

16 ‘‘(2) No labor organization, or its agents, represent17 ing employees of an employer having employees subject to

18 any provisions of this section shall cause or attempt to

19 cause such an employer to discriminate against an em20 ployee in violation of paragraph (1).

21 ‘‘(3) For purposes of administration and enforce22 ment, any amounts owing to any employee that have been

23 withheld in violation of this subsection shall be deemed

24 to be unpaid minimum wages or unpaid overtime com25 pensation under this Act.
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1 ‘‘(4) As used in this subsection, the term ‘labor orga2 nization’ means any organization of any kind, or any agen3 cy or employee representation committee or plan, in which

4 employees participate and which exists for the purpose,

5 in whole or in part, of dealing with employers concerning

6 grievances, labor disputes, wages, rates of pay, hours of

7 employment, or conditions of work.’’.

8 SEC. 103. CIVIL RIGHTS.

9 Section 1977(a) of the Revised Statutes (42 U.S.C.

10 1981(a)) is amended to read as follows:

11 ‘‘(a)(1) All persons within the jurisdiction of the

12 United States shall have the right in every State and Ter13 ritory—

14 ‘‘(A) to make and enforce contracts free from

15 unlawful discrimination based on race, color, reli16 gion, sex, national origin, age, or disability; and

17 ‘‘(B) to sue, be parties, give evidence, and to be

18 subject to punishment, pains, penalties, taxes, li19 censes, and exactions, free from such unlawful dis20 crimination.

21 ‘‘(2) For purposes of determining the existence of un22 lawful discrimination under paragraph (1)—

23 ‘‘(A) in the case of a claim of unlawful discrimi24 nation based on race, color, religion, sex, or national

25 origin, the same legal standards shall apply as are
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1 applicable under title VII of the Civil Rights Act of

2 1964 (42 U.S.C. 20000e et seq.);

3 ‘‘(B) in the case of a claim of unlawful discrimi4 nation based on age, the same legal standards shall

5 apply as are applicable under the Age Discrimina6 tion in Employment Act of 1967 (29 U.S.C. 621 et

7 seq.); and

8 ‘‘(C) in the case of a claim of unlawful discrimi9 nation based on disability, the same legal standards

10 shall apply as are applicable under the Americans

11 with Disabilities Act (42 U.S.C. 12101 et seq.).’’.

12 SEC. 104. COLLECTIVE BARGAINING RIGHTS.

13 (a) DETERMINATION OF BARGAINING UNITS.—Sec14 tion 9(b) of the National Labor Relations Act (29 U.S.C.

15 159(b)) is amended—

16 (1) by striking ‘‘; or (2)’’ and inserting ‘‘or’’;

17 and

18 (2) by striking ‘‘or (3)’’ and inserting ‘‘; (3) de19 cide that an employee shall be excluded from a unit

20 otherwise appropriate for the purposes of collective

21 bargaining based on the employee’s part-time or

22 temporary status, if such employee (A) has a reason23 able expectation of continued employment; and (B)

24 is employed by the employer on the date on which

25 eligibility for participation in a representation elec-
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1 tion is determined and on the date of the election;

2 or (4)’’.

3 (b) JOINT EMPLOYER STATUS.—Section 2(3) of the

4 National Labor Relations Act (29 U.S.C. 152(3)) is

5 amended by adding at the end thereof the following: ‘‘An

6 individual employed by a contractor of an employer shall

7 be considered an employee of the employer if the individual

8 is assigned on a regular basis to perform work on the

9 premises of the employer, and the tasks performed by such

10 individual are functionally integrated with the operations

11 of the employer.’’.

12 SEC. 105. OCCUPATIONAL SAFETY AND HEALTH.

13 Section 5(a)(1) of the Occupational Safety and

14 Health Act (29 U.S.C. 654(a)(1)) is amended to read as

15 follows:

16 ‘‘(1) shall furnish employment and a place of

17 employment that are free from recognized hazards

18 that are causing or are likely to cause death or seri19 ous physical harm to the employees of the employer

20 or to individuals who are employed by another em21 ployer and are performing services at such place of

22 employment;’’.
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1 SEC. 106. ADVANCE NOTICE OF LAYOFFS AND PLANT CLOS2 INGS.

3 Section 2 of the Worker Adjustment and Retraining

4 Notification Act (29 U.S.C. 2101 et seq.) is amended—

5 (1) in subsection (a)—

6 (A) in paragraph (1), to read as follows:

7 ‘‘(1) the term ‘employer’ means any business

8 enterprise that employs 100 or more employees;’’;

9 (B) in paragraph (2), by striking ‘‘exclud10 ing any part-time employees’’;

11 (C) in paragraph (3), by striking ‘‘(exclud12 ing any part-time employees)’’ each place such

13 term appears; and

14 (D) by striking paragraph (8); and

15 (2) in subsection (b)(1), by striking ‘‘(other

16 than a part-time employee)’’.

17 SEC. 107. CONTINGENT WORKFORCE SURVEY.

18 The Secretary of Labor, acting through the Commis19 sioner of the Bureau of Labor Statistics, shall establish

20 and carry out an annual survey identifying—

21 (1) the characteristics of temporary workers in

22 the United States;

23 (2) the relationship between such workers and

24 the establishments at which such workers are tempo25 rarily employed; and
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1 (3) where appropriate, the relationship between

2 such workers and their permanent employers.

3 SEC. 108. FEDERAL SERVICE CONTRACT SUCCESSORSHIP.

4 Section 4(c) of the Service Contract Act of 1965 (41

5 U.S.C. 353(c)) is amended—

6 (1) by striking ‘‘(c) No’’ and inserting ‘‘(c)(1)

7 No’’; and

8 (2) by adding at the end the following new

9 paragraphs:

10 ‘‘(2)(A) Except as provided in subparagraph (B), a

11 contractor under a successor contract (under which sub12 stantially the same services are performed) shall, in good

13 faith, provide a right of first refusal of employment under

14 that contract to each employee employed under the prede15 cessor contract. If, under the successor contract, the num16 ber of employees to be employed is less than the number

17 of employees employed under the predecessor contract, the

18 contractor shall provide such right to the employees on

19 the basis of seniority.

20 ‘‘(B) Notwithstanding the requirements of subpara21 graph (A), a contractor shall not be required to provide

22 a right of first refusal of employment to an employee em23 ployed under the predecessor contract if—

24 ‘‘(i) the contractor reasonably believes, based on

25 the past performance of the employee under the
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1 predecessor contract, that the employee is unable to

2 perform the work suitably under the successor con3 tract; or

4 ‘‘(ii) if such action would require the contractor

5 to lay off or discharge an employee who has worked

6 continuously for the contractor for not less than the

7 60-day period immediately preceding the commence8 ment of the successor contract.

9 ‘‘(C) A contractor satisfies the requirement under

10 subparagraph (A) to provide employees under the prede11 cessor contract with a right of first refusal of employment

12 under a successor contract on the basis of seniority if the

13 contractor provides such right first to the most senior em14 ployees and then to the other employees on the basis of

15 descending order of seniority until all of the positions of

16 employment are filled or all employees under the prede17 cessor contract have exercised the right, whichever occurs

18 first. Seniority shall be determined on the basis of length

19 of service under the predecessor contract and each con20 tract, if any, that preceded the predecessor contract.

21 ‘‘(D) In subparagraph (A), the term ‘contractor’,

22 with respect to a successor contract, includes a sub23 contractor performing the obligations of the contractor

24 under such contract.
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1 ‘‘(3) The Secretary shall issue an order against any

2 contractor or subcontractor under a successor contract

3 who fails to hire an individual in accordance with this sub4 section. The order shall require the contractor or sub5 contractor to hire any individual whom the contractor or

6 subcontractor has unlawfully failed to hire and to com7 pensate the individual for any wages and fringe benefits

8 that the individual would have received if the individual

9 would have been hired by the contractor or subcontractor.

10 Any amount that the Secretary determines is owed to an

11 individual by a contractor or subcontractor under this

12 paragraph may be withheld from any accrued payment

13 due on the successor contract or any other contact be14 tween the contractor and the Federal Government.

15 ‘‘(5)(A) This subsection shall not apply to contracts

16 awarded pursuant to the Javits-Wagner-O’Day Act, or

17 under which services are provided to the Federal Govern18 ment on an intermittent basis.

19 ‘‘(B) In subparagraph (A), the term ‘Javits-Wagner20 O’Day Act’ means the Act entitled ‘An Act to create a

21 Committee on Purchases of Blind-made Products, and for

22 other purposes’, approved June 25, 1938 (41 U.S.C. 46–

23 48c), commonly referred to as the Wagner-O’Day Act,

24 that was revised and reenacted in the Act of June 23,
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1 1971 (85 Stat. 77), commonly referred to as the Javits2 Wagner-O’Day Act.’’.

3 TITLE II—EMPLOYEE BENEFITS

4 SEC. 201. FAMILY AND MEDICAL LEAVE.

5 Section 101(2)(A) of the Family and Medical Leave

6 Act (29 U.S.C. 2611(2)(A)) is amended—

7 (1) by striking ‘‘at least 12 months’’ and insert8 ing ‘‘at least 3 months’’; and

9 (2) by striking ‘‘at least 1,250 hours of service

10 with such employer during the previous 12-month

11 period’’ and inserting ‘‘at least 125 hours of service

12 with such employer during the previous 3-month pe13 riod’’.

14 SEC. 202. RETIREMENT AND HEALTH CARE BENEFITS.

15 (a) TREATMENT OF EMPLOYEES WORKING AT LESS

16 THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND

17 ACCRUAL RULES GOVERNING PENSION PLANS.—

18 (1) PARTICIPATION RULES.—

19 (A) IN GENERAL.—Section 202(a)(3) of

20 the Employee Retirement Income Security Act

21 of 1974 (29 U.S.C. 1052(a)(3)) is amended by

22 adding at the end the following new subpara23 graph:
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1 ‘‘(E)(i) For purposes of this paragraph, in the case

2 of any employee who, as of the beginning of the 12-month

3 period referred to in subparagraph (A)—

4 ‘‘(I) has customarily completed 500 or more

5 hours of service per year but less than 1,000 hours

6 of service per year, or

7 ‘‘(II) is employed in a type of position in which

8 employment customarily constitutes 500 or more

9 hours of service per year but less than 1,000 hours

10 of service per year,

11 completion of 500 hours of service within such 12-month

12 period shall be treated as completion of 1,000 hours of

13 service.

14 ‘‘(ii) For purposes of this subparagraph, the extent

15 to which employment in any type of position customarily

16 constitutes less than 1,000 hours of service per year shall

17 be determined with respect to each pension plan in accord18 ance with such regulations as the Secretary shall prescribe

19 providing for consideration of facts and circumstances pe20 culiar to the workforce constituting the participants in

21 such plan.’’.

22 (B) CONFORMING AMENDMENT.—Section

23 204(b)(1)(E) of such Act (29 U.S.C.

24 1054(b)(1)(E)) is amended by striking ‘‘section
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1 202(a)(3)(A)’’ and inserting ‘‘subparagraphs

2 (A) and (E) of section 202(a)(3)’’.

3 (2) VESTING RULES.—

4 (A) IN GENERAL.—Section 203(b)(2) of

5 such Act (29 U.S.C. 1053(b)(2)) is amended by

6 adding at the end the following new subpara7 graph:

8 ‘‘(E)(i) For purposes of this paragraph, in the case

9 of any employee who, as of the beginning of the period

10 designated by the plan pursuant to subparagraph (A)—

11 ‘‘(I) has customarily completed 500 or more

12 hours of service per year but less than 1,000 hours

13 of service per year, or

14 ‘‘(II) is employed in a type of position in which

15 employment customarily constitutes 500 or more

16 hours of service per year but less than 1,000 hours

17 of service per year,

18 completion of 500 hours of service within such period shall

19 be treated as completion of 1,000 hours of service.

20 ‘‘(ii) For purposes of this subparagraph, the extent

21 to which employment in any type of position customarily

22 constitutes less than 1,000 hours of service per year shall

23 be determined with respect to each pension plan in accord24 ance with such regulations as the Secretary shall prescribe

25 providing for consideration of facts and circumstances pe-
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1 culiar to the workforce constituting the participants in

2 such plan.’’.

3 (B) 1-YEAR BREAKS IN SERVICE.—Section

4 203(b)(3) of such Act (29 U.S.C. 1053(b)(3))

5 is amended by adding at the end the following

6 new subparagraph:

7 ‘‘(F)(i) For purposes of this paragraph, in the case

8 of any employee who, as of the beginning of the period

9 designated by the plan pursuant to subparagraph (A)—

10 ‘‘(I) has customarily completed 500 or more

11 hours of service per year but less than 1,000 hours

12 of service per year, or

13 ‘‘(II) is employed in a type of position in which

14 employment customarily constitutes 500 or more

15 hours of service per year but less than 1,000 hours

16 of service per year,

17 completion of 250 hours of service within such period shall

18 be treated as completion of 500 hours of service.

19 ‘‘(ii) For purposes of this subparagraph, the extent

20 to which employment in any type of position customarily

21 constitutes less than 1,000 hours of service per year shall

22 be determined with respect to each pension plan in accord23 ance with such regulations as the Secretary shall prescribe

24 providing for consideration of facts and circumstances pe-
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1 culiar to the workforce constituting the participants in

2 such plan.’’.

3 (3) ACCRUAL RULES.—Section 204(b)(4)(C) of

4 such Act (29 U.S.C. 1054(b)(4)(C)) is amended—

5 (A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

6 (B) by adding at the end the following new

7 clauses:

8 ‘‘(ii) For purposes of this subparagraph, in the case

9 of any employee who, as of the beginning of the period

10 designated by the plan pursuant to clause (i)—

11 ‘‘(I) has customarily completed 500 or more

12 hours of service per year but less than 1,000 hours

13 of service per year, or

14 ‘‘(II) is employed in a type of position in which

15 employment customarily constitutes 500 or more

16 hours of service per year but less than 1,000 hours

17 of service per year,

18 completion of 500 hours of service within such period shall

19 be treated as completion of 1,000 hours of service.

20 ‘‘(iii) For purposes of clause (ii), the extent to which

21 employment in any type of position customarily constitutes

22 less than 1,000 hours of service per year shall be deter23 mined with respect to each pension plan in accordance

24 with such regulations as the Secretary shall prescribe pro25 viding for consideration of facts and circumstances pecu-
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1 liar to the workforce constituting the participants in such

2 plan.’’.

3 (b) TREATMENT OF EMPLOYEES WORKING AT LESS

4 THAN FULL-TIME UNDER GROUP HEALTH PLANS.

5 (1) IN GENERAL.—Part 2 of subtitle B of title

6 I of such Act is amended—

7 (A) by redesignating section 211 (29

8 U.S.C. 1061) as section 212; and

9 (B) by inserting after section 210 (29

10 U.S.C. 1060) the following new section:

11 ‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP

12 HEALTH PLANS

13 ‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em14 ployer-provided premium under a group health plan with

15 respect to any employee for any period of coverage solely

16 because the employee’s customary employment is less than

17 full-time may be provided under such plan only if the em18 ployee is described in subsection (b) and only to the extent

19 permitted under subsection (c).

20 ‘‘(b) REDUCTIONS APPLICABLE TO EMPLOYEES

21 WORKING LESS THAN FULL-TIME.—

22 ‘‘(1) IN GENERAL.—An employee is described in

23 this subsection if such employee, as of the beginning

24 of the period of coverage referred to in subsection

25 (a)—
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1 ‘‘(A) has customarily completed less than

2 30 hours of service per week, or

3 ‘‘(B) is employed in a type of position in

4 which employment customarily constitutes less

5 than 30 hours of service per week.

6 ‘‘(2) REGULATIONS.—For purposes of para7 graph (1), whether employment in any type of posi8 tion customarily constitutes less than 30 hours of

9 service per week shall be determined with respect to

10 each group health plan in accordance with such reg11 ulations as the Secretary shall prescribe providing

12 for consideration of facts and circumstances peculiar

13 to the workforce constituting the participants in

14 such plan.

15 ‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The

16 employer-provided premium under a group health plan

17 with respect to any employee for any period of coverage,

18 after the reduction permitted under subsection (a), shall

19 not be less than a ratable portion of the employer-provided

20 premium which would be provided under such plan for

21 such period of coverage with respect to an employee who

22 completes 30 hours of service per week.

23 ‘‘(d) DEFINITIONS.—For purposes of this section—
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1 ‘‘(1) GROUP HEALTH PLAN.—The term ‘group

2 health plan’ has the meaning provided such term in

3 section 607(1).

4 ‘‘(2) EMPLOYER-PROVIDED PREMIUM.—

5 ‘‘(A) IN GENERAL.—The term ‘employer6 provided premium’ under a plan for any period

7 of coverage means the portion of the applicable

8 premium under the plan for such period of cov9 erage which is attributable under the plan to

10 employer contributions.

11 ‘‘(B) APPLICABLE PREMIUM.—For pur12 poses of subparagraph (A), in determining the

13 applicable premium of a group health plan,

14 principles similar to the principles applicable

15 under section 604 shall apply.’’.

16 (2) CONFORMING AMENDMENTS.—

17 (A) Section 201(1) of such Act (29 U.S.C.

18 1051(1)) is amended by inserting ‘‘, except with

19 respect to section 211’’ before the semicolon.

20 (B) The table of contents in section 1 of

21 such Act is amended by striking the item relat22 ing to section 211 and inserting the following

23 new items:

‘‘Sec. 211. Treatment of part-time workers under group health plans.

‘‘Sec. 212. Effective date.’’.
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1 (c) EXPANSION OF DEFINITION OF EMPLOYEE TO

2 INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE

3 LEASED OR CONTRACTED FOR.—Paragraph (6) of section

4 3 of such Act (29 U.S.C. 1002(6)) is amended—

5 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and

6 (2) by adding at the end the following new sub7 paragraph:

8 ‘‘(B) Such term includes, with respect to any em9 ployer, any person who is not an employee (within the

10 meaning of subparagraph (A)) of such employer and who

11 provides services to such employer, if—

12 ‘‘(i) such person has (pursuant to an agreement

13 with such employer or any other person) performed

14 such services for such employer (or for such em15 ployer and related persons (within the meaning of

16 section 144(a)(3) of the Internal Revenue Code of

17 1986)) for a period of at least 1 year (6 months in

18 the case of core health benefits) at the rate of at

19 least 500 hours of service per year, and

20 ‘‘(ii) such services are of a type historically per21 formed, in the business field of the employer, by em22 ployees (within the meaning of subparagraph (A)).’’.

23 (d) EFFECTIVE DATES.

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section
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1 shall apply with respect to plan years beginning on

2 or after January 1, 1995.

3 (2) SPECIAL RULE FOR COLLECTIVELY BAR4 GAINED PLANS.—In the case of a plan maintained

5 pursuant to 1 or more collective bargaining agree6 ments between employee representatives and 1 or

7 more employers ratified on or before the date of the

8 enactment of this Act, paragraph (1) shall be ap9 plied to benefits pursuant to, and individuals covered

10 by, any such agreement by substituting for ‘‘Janu11 ary 1, 1995’’ the date of the commencement of the

12 first plan year beginning on or after the earlier of—

13 (A) the later of—

14 (i) January 1, 1995, or

15 (ii) the date on which the last of such

16 collective bargaining agreements termi17 nates (determined without regard to any

18 extension thereof after the date of the en19 actment of this Act), or

20 (B) January 1, 1997.

21 (3) PLAN AMENDMENTS.—If any amendment

22 made by this section requires an amendment to any

23 plan, such plan amendment shall not be required to

24 be made before the first plan year beginning on or

25 after January 1, 1996, if—
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1 (A) during the period after such amend2 ment made by this section takes effect and be3 fore such first plan year, the plan is operated

4 in accordance with the requirements of such

5 amendment made by this section, and

6 (B) such plan amendment applies retro7 actively to the period after such amendment

8 made by this section takes effect and such first

9 plan year.

10 A plan shall not be treated as failing to provide defi11 nitely determinable benefits or contributions, or to

12 be operated in accordance with the provisions of the

13 plan, merely because it operates in accordance with

14 this paragraph.

15 SEC. 203. PENSION PORTABILITY.

16 (a) REQUIREMENT OF PORTABLE PENSION AC17 COUNTS.—

18 (1) IN GENERAL.—Part 2 of subtitle B of title

19 I of the Employee Retirement Income Security Act

20 of 1974 (29 U.S.C. 1051 et seq.) is amended by in21 serting after section 205 the following new section:

22 ‘‘SEC. 205A. PORTABILITY REQUIREMENTS FOR DEFINED

23 CONTRIBUTION PLANS.

24 ‘‘(a) DIRECT TRANSFERS.—
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1 ‘‘(1) IN GENERAL.—Each defined contribution

2 plan shall, at the election of an employee upon sepa3 ration from service, make a direct trustee-to-trustee

4 transfer of the portion of the employee’s eligible

5 amount specified in the election to a portable pen6 sion account specified in the election which—

7 ‘‘(A) is maintained by a qualified pension

8 plan which agrees to accept the transfer, or

9 ‘‘(B) is established by the individual on the

10 individual’s own behalf.

11 ‘‘(2) TIME FOR TRANSFER.—The transfer

12 under paragraph (1) shall be made no later than 60

13 days after the date of the employee’s separation

14 from service.

15 ‘‘(b) PORTABLE PENSION ACCOUNTS.—For purposes

16 of this section—

17 ‘‘(1) IN GENERAL.—The term ‘portable pension

18 account’ means—

19 ‘‘(A) in the case of a qualified pension

20 plan, an individual account plan, an individual

21 account within the plan, or simplified employee

22 pension under section 408(k) of the Internal

23 Revenue Code of 1986 meeting the require24 ments of the following paragraphs of this sub25 section, and
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1 ‘‘(B) in the case of an individual, an indi2 vidual retirement plan meeting such require3 ments.

4 ‘‘(2) DISTRIBUTION REQUIREMENTS.—

5 ‘‘(A) IN GENERAL.—The requirements of

6 this paragraph are met if distributions from the

7 account—

8 ‘‘(i) may only be made in a permitted

9 retirement income form, and

10 ‘‘(ii) may only be made with the con11 sent of the participant.

12 ‘‘(B) PERMITTED RETIREMENT INCOME

13 FORM.—For purposes of subparagraph (A), a

14 permitted retirement income form is as follows:

15 ‘‘(i) A qualified joint and survivor an16 nuity (within the meaning of section

17 205(d)).

18 ‘‘(ii) Any other joint life annuity (in19 cluding a cash refund annuity).

20 ‘‘(iii) A single life annuity (including a

21 cash refund annuity).

22 ‘‘(iv) Any series of substantially equal

23 periodic payments described in section

24 72(t)(2)(A)(iv) of the Internal Revenue
26

•S 2504 IS

1 Code of 1986 which are not part of an an2 nuity described in the preceding clauses.

3 ‘‘(3) SPOUSAL CONSENT.—The requirements of

4 this paragraph shall not be met unless the account

5 provides that any election as to form of benefit must

6 meet spousal consent requirements which are iden7 tical to the requirements of section 205(c)(2).

8 ‘‘(c) ELIGIBLE AMOUNT.—For purposes of this sec9 tion, the term ‘eligible amount’ means, with respect to any

10 participant, the balance to the credit of the participant

11 as of the date of the distribution, including interest on

12 such balance through the date of the distribution.

13 ‘‘(d) OTHER DEFINITIONS AND RULES.—For pur14 poses of this section—

15 ‘‘(1) QUALIFIED PLAN.—The term ‘qualified

16 plan’ means—

17 ‘‘(A) a plan described in section 401(a) of

18 the Internal Revenue Code of 1986 which in19 cludes a trust which is exempt from tax under

20 section 501(a) of such Code,

21 ‘‘(B) an annuity plan described in section

22 403(a) of such Code, and

23 ‘‘(C) an annuity contract described in sec24 tion 403(b) of such Code.
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1 ‘‘(2) INDIVIDUAL RETIREMENT PLAN.—The

2 term ‘individual retirement plan’ means—

3 ‘‘(A) an individual retirement account de4 scribed in section 408(a) of such Code, and

5 ‘‘(B) an individual retirement annuity de6 scribed in section 408(b) of such Code.

7 ‘‘(3) BENEFICIARIES OR ALTERNATE PAYEES.—

8 In the case of an individual who is a beneficiary of

9 the participant or an alternate payee (within the

10 meaning of section 206(d)(3)(K)) under a plan, such

11 individual shall be treated in the same manner as if

12 a participant in the plan.’’

13 (2) CONFORMING AMENDMENTS.—

14 (A) Section 204(g)(2) of the Employee Re15 tirement Income Security Act of 1974 (29

16 U.S.C. 1054(g)(2)) is amended by adding at

17 the end the following new sentence: ‘‘Except as

18 otherwise provided in regulations of the Sec19 retary of Labor and the Secretary of the Treas20 ury, the requirements of subparagraph (B) shall

21 not be treated as violated in the case of a direct

22 trustee-to-trustee transfer described in section

23 205A.’’
28

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1 (B) Section 204(d) of the Employee Re2 tirement Income Security Act of 1974 (29

3 U.S.C. 1054(d)) is amended—

4 (i) in paragraph (1), by striking ‘‘or’’,

5 (ii) in paragraph (2), by striking the

6 period and inserting ‘‘, or’’, and

7 (iii) by inserting after paragraph (2)

8 the following new paragraph:

9 ‘‘(3) a direct trustee-to-trustee transfer de10 scribed in section 205A.’’

11 (C) The table of contents for part 2 of

12 subtitle B of title I of the Employee Retirement

13 Income Security Act of 1974 is amended by in14 serting after the item relating to section 205

15 the following new item:

‘‘Sec. 205A. Portability requirements for defined contribution plans.’’

16 (b) RECIPROCITY AGREEMENTS BETWEEN INDUSTRY

17 AND LABOR FUNDS.—

18 (1) ESTABLISHMENT.—The Secretary of Labor

19 shall establish standards for plans maintained pur20 suant to collective bargaining agreements between

21 employers and employee representatives which pro22 vide that 2 or more of the plans may enter into

23 agreements under which—

24 (A) the plans would maintain portable pen25 sion accounts described in section 205A of the
29

•S 2504 IS

1 Employee Retirement Income Security Act of

2 1974 (as added by section 121) for employees

3 who terminate employment covered by 1 plan

4 and begin employment covered by another, or

5 (B) the plans would make arrangements

6 for employees to transfer accrued benefits and

7 vesting rights from one plan to another.

8 (2) STANDARDS MADE AVAILABLE.—The Sec9 retary of Labor shall make any standards developed

10 under paragraph (1) available to employers and em11 ployee representatives.

12 (c) INFLATION ADJUSTMENT FOR DEFERRED VEST13 ED BENEFITS.—

14 (1) IN GENERAL.—Section 203 of the Employee

15 Retirement Income Security Act of 1974 (29 U.S.C.

16 1053) is amended by adding at the end the following

17 new subsection:

18 ‘‘(f) DEFERRED NONFORFEITABLE BENEFITS.—If

19 an employee’s participation in a plan is terminated before

20 the date the employee is eligible for payment of an imme21 diate annuity under the plan—

22 ‘‘(1) subsection (e) shall not apply, and

23 ‘‘(2) the plan shall provide that the employee

24 may elect—
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1 ‘‘(A) to have the plan immediately distrib2 ute the present value (using the interest rate

3 specified by the Secretary) of the employee’s

4 nonforfeitable benefit, or

5 ‘‘(B) to have the plan provide inflation ad6 justments (at the rates specified by the Sec7 retary) to such benefit during the period begin8 ning with the date of separation and ending

9 with the date an annuity is first payable.’’

10 (2) ACCRUED BENEFIT.—Section 204(d) of the

11 Employee Retirement Income Security Act of 1974

12 (29 U.S.C. 1054(d)) is amended by adding at the

13 end the following new sentence: ‘‘An employee’s ac14 crued benefit under a plan shall be increased by any

15 inflation adjustment under section 203(f)(2)(B).’’

16 SEC. 204. UNEMPLOYMENT COMPENSATION.

17 (a) PART-TIME EMPLOYEES; INDEPENDENT CON18 TRACTORS.—Subsection (a) of section 3304 of the Inter19 nal Revenue Code of 1986 (relating to requirements for

20 approval of State unemployment compensation laws) is

21 amended by striking ‘‘and’’ at the end of paragraph (17),

22 by redesignating paragraph (18) as paragraph (20), and

23 by inserting after paragraph (17) the following new para24 graphs:
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1 ‘‘(18) in applying the State law provisions relat2 ing to availability for work, active search for work,

3 or refusal to accept work, to an individual seeking

4 part-time employment, the term ‘suitable work’ shall

5 not include any work where the individual would

6 normally perform services for more hours per week

7 than the number of hours per week for which the in8 dividual is available, if the individual demonstrates

9 good cause for the individual’s limited availability

10 and such limitation does not substantially impair the

11 individual’s current attachment to the labor force;

12 ‘‘(19) the determination of whether an individ13 ual is an employee of another person shall be made

14 in accordance with section 3306(i); and’’.

15 (b) EFFECTIVE DATE.—

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section

18 shall take effect on November 1, 1995.

19 (2) SPECIAL RULE.—In the case of any State

20 the legislature of which has not been in session for

21 at least 30 calendar days (whether or not successive)

22 between the date of the enactment of this Act and

23 November 1, 1995, the amendments made by this

24 section shall take effect 30 calendar days after the
32

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1 1st day on which such legislature is in session on or

2 after November 1, 1995.

3 TITLE III—MISCLASSIFICATION

4 OF EMPLOYEES AS INDE5 PENDENT CONTRACTORS

6 SEC. 301. INTERNAL REVENUE SERVICE PROCEDURES.

7 (a) WAIVER OF EMPLOYMENT TAX LIABILITY FOR

8 REASONABLE GOOD FAITH MISCLASSIFICATION BASED

9 ON COMMON LAW RULES.—Section 3509 of the Internal

10 Revenue Code of 1986 (relating to determination of em11 ployer’s liability for certain employment taxes) is amended

12 by adding at the end the following new subsection:

13 ‘‘(e) WAIVER OF EMPLOYMENT TAX LIABILITY FOR

14 REASONABLE GOOD FAITH MISCLASSIFICATION BASED

15 ON COMMON LAW RULES.—

16 ‘‘(1) IN GENERAL.—For purposes of determin17 ing the liability of any taxpayer for employment

18 taxes with respect to any individual for any period,

19 such individual shall be deemed not to have been an

20 employee of the taxpayer for such period if—

21 ‘‘(A) the taxpayer did not treat such indi22 vidual as an employee for purposes of the em23 ployment taxes for such period,

24 ‘‘(B) the taxpayer’s treatment of such indi25 vidual as not being an employee was based on
33

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1 a reasonable good faith misapplication of the

2 common law rules used for determining the em3 ployer-employee relationship,

4 ‘‘(C) all Federal tax returns (including in5 formation returns) required to be filed by the

6 taxpayer with respect to such individual for

7 such period were filed on a basis consistent with

8 the taxpayer’s treatment of such individual as

9 not being an employee,

10 ‘‘(D) the taxpayer (and any predecessor)

11 did not treat any other individual holding a

12 substantially similar position as an employee for

13 purposes of the employment taxes for any pe14 riod beginning after December 31, 1977, and

15 ‘‘(E) the taxpayer enters into a closing

16 agreement under section 7121 with the Sec17 retary (in the time and manner determined by

18 the Secretary) agreeing to treat such individual,

19 and any other individual holding a substantially

20 similar position, as employees and to file all

21 Federal employment tax returns with respect to

22 such individuals on a basis consistent with the

23 taxpayer’s treatment of such individuals as em24 ployees.

25 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—
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1 ‘‘(A) EMPLOYMENT TAX.—For purposes of

2 this subsection, the term ‘employment tax’

3 means any tax imposed by subtitle C, including

4 any interest, penalty, or additional amount with

5 respect to such tax.

6 ‘‘(B) NO REFUND OR CREDIT OF OVERPAY7 MENT.—No refund or credit of any overpay8 ment of an employment tax resulting from the

9 application of paragraph (1) shall be allowed,

10 notwithstanding that the period for filing a

11 claim for refund or credit of such overpayment

12 is not barred on the effective date of this sub13 section.’’

14 (b) MODIFICATIONS TO SAFE HARBOR FOR CLASSI15 FICATIONS OF INDIVIDUALS AS NONEMPLOYEES.—

16 (1) REQUIREMENT OF REASONABLE BASIS.—

17 Paragraph (1) of section 530(a) of the Revenue Act

18 of 1978 (relating to controversies involving whether

19 individuals are employees for purposes of the em20 ployment taxes) is amended by striking ‘‘unless the

21 taxpayer had no reasonable basis’’ and inserting the

22 following: ‘‘if the taxpayer had a reasonable basis’’.

23 (2) REPEAL OF PRIOR AUDIT AS REASONABLE

24 BASIS, ETC.—Paragraph (2) of section 530(a) of the

25 Revenue Act of 1978 is amended—
35

•S 2504 IS

1 (A) by striking the paragraph caption and

2 inserting the following: ‘‘REASONABLE BASIS

3 FOR NOT TREATING INDIVIDUAL AS EM4 PLOYEE.—’’,

5 (B) in the matter preceding subparagraph

6 (A)—

7 (i) by striking ‘‘in any case’’, and

8 (ii) by inserting ‘‘only’’ before ‘‘if the

9 taxpayer’s’’,

10 (C) by adding ‘‘or’’ at the end of subpara11 graph (A), and

12 (D) by striking subparagraph (B) and by

13 redesignating subparagraph (C) as subpara14 graph (B).

15 (c) AUTHORITY FOR REGULATIONS AND RULINGS ON

16 EMPLOYMENT STATUS.—Section 530 of the Revenue Act

17 of 1978 is amended by striking subsection (b) and by re18 designating subsections (c) and (d) as subsections (b) and

19 (c), respectively.

20 (d) EFFECTIVE DATES.—

21 (1) IN GENERAL.—The amendments made by

22 this section shall take effect beginning on the date

23 which is 120 days after the date of the enactment

24 of this Act.
36

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1 (2) MODIFICATIONS TO SAFE HARBOR.—The

2 amendments made by subsection (b) shall apply to

3 periods ending on or after the date which is 120

4 days after the date of the enactment of this Act.

5 SEC. 302. FEDERAL CONTRACTS.

6 (a) CLASSIFICATION OF PERSONS AS EMPLOYEES

7 AND INDEPENDENT CONTRACTORS UNDER CERTAIN

8 PROCUREMENT CONTRACTS.—(1) Title III of the Federal

9 Property and Administrative Services Act of 1949 (41

10 U.S.C. 251 et seq.) is amended by adding at the end the

11 following new section:

12 ‘‘SEC. 312. CLASSIFICATION OF PERSONS AS EMPLOYEES

13 AND INDEPENDENT CONTRACTORS.

14 ‘‘(a) INELIGIBILITY FOR GOVERNMENT CONTRACTS

15 AND SUBCONTRACTS.—(1) A person (including any sub16 sidiary, successor, or related entity of a person) shall not

17 be eligible for a contract during the 2-year period begin18 ning on the date of the issuance of any final determination

19 under Federal law that the person (including any subsidi20 ary or related entity of the person) willfully misclassified

21 an individual for purposes of any employment tax.

22 ‘‘(2) For purposes of this subsection, a determination

23 is final if all rights to appeal the determination, or to re24 quest a review, rehearing, or redetermination of the mat-
37

•S 2504 IS

1 ter that is the subject of the determination, have been ex2 hausted or have lapsed.

3 ‘‘(b) CERTIFICATION OF ADEQUACY OF BIDS TO PAY

4 EMPLOYMENT TAXES.—A person who submits a bid or

5 proposal for a contract shall certify that the amount of

6 the bid or proposal is adequate to pay all employment

7 taxes with respect to all work to be performed under the

8 contract by employees of the person.

9 ‘‘(c) NOTIFICATION OF INDEPENDENT CONTRAC10 TORS.—Each contract shall include a requirement that the

11 contractor provide, to each person who performs work

12 under the contract and who is treated by the contractor

13 as an independent contractor for purposes of employment

14 taxes, a notification regarding—

15 ‘‘(1) all obligations of the independent contrac16 tor under Federal and State law to withhold and pay

17 employment taxes with respect to work performed

18 under the contract by the independent contractor

19 (including work performed by employees of the inde20 pendent contractor); and

21 ‘‘(2) all statutory rights and protections that

22 are available under Federal and State law to em23 ployees of the contractor and are not available to the

24 independent contractor (including employees of the

25 independent contractor), including rights and protec-
38

•S 2504 IS

1 tions under the Fair Labor Standards Act of 1938,

2 the Occupational Safety and Health Act of 1978,

3 and title VII of the Civil Rights Act of 1964.

4 ‘‘(d) RIGHT OF ACTION.—A person who submits a

5 bid or proposal for a contract and who suffers damages

6 as a result of the award of the contract to a person who

7 knowingly and willfully submits a certification under sub8 section (b) with respect to the contract that is false, may

9 bring an action for damages against the person awarded

10 the contract in any district court of the United States in

11 which the defendant is located.

12 ‘‘(e) DEFINITIONS.—As used in this section:

13 ‘‘(1) The term ‘employment tax’ means any tax

14 imposed by subtitle C of the Internal Revenue Code

15 of 1986.

16 ‘‘(2) The term ‘contract’ means a contract that

17 is entered into by an executive agency under this

18 title, and all subcontracts under such a contract.

19 ‘‘(3) The term ‘misclassify’ means to treat as

20 an independent contractor an individual who is an

21 employee.’’.

22 (2) The table of contents in the first section of the

23 Federal Property and Administrative Services Act of 1949

24 is amended by inserting after the item relating to the last

25 section in title III the following new item:

‘‘Sec. 312. Classification of persons as employees and independent contractors.’’.
39

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1 (b) APPLICABILITY.—Section 312 of the Federal

2 Property and Administrative Services Act of 1949, as

3 added by subsection (a), shall apply to—

4 (1) contracts entered into under title III of

5 such Act after the expiration of the 180-day period

6 beginning on the date of the enactment of this Act;

7 (2) subcontracts under contracts covered by

8 paragraph (1); and

9 (3) options exercised under any such contract

10 after the expiration of the 180-day period beginning

11 on the date of the enactment of this Act.

12 SEC. 303. DEFENSE CONTRACTS.

13 (a) CLASSIFICATION OF PERSONS AS EMPLOYEES

14 AND INDEPENDENT CONTRACTORS UNDER DEFENSE

15 CONTRACTS.—(1) Chapter 141 of title 10, United States

16 Code, is amended by inserting after section 2393 the fol17 lowing new section:

18 ‘‘§ 2393a. Classification of persons as employees and

19 independent contractors

20 ‘‘(a) INELIGIBILITY FOR DEFENSE CONTRACTS AND

21 SUBCONTRACTS.—(1) A person (including any subsidiary,

22 successor, or related entity of a person) shall not be eligi23 ble for a contract during the 2-year period beginning on

24 the date of the issuance of any final determination under

25 Federal law that the person (including any subsidiary or
40

•S 2504 IS

1 related entity of the person) willfully misclassified an indi2 vidual for purposes of any employment tax.

3 ‘‘(2) For purposes of this subsection, a determination

4 is final if all rights to appeal the determination, or to re5 quest a review, rehearing, or redetermination of the mat6 ter that is the subject of the determination, have been ex7 hausted or have lapsed.

8 ‘‘(b) CERTIFICATION OF ADEQUACY OF BIDS TO PAY

9 EMPLOYMENT TAXES.—A person who submits a bid or

10 proposal for a contract shall certify that the amount of

11 the bid or proposal is adequate to pay all employment

12 taxes with respect to all work to be performed under the

13 contract by employees of the person.

14 ‘‘(c) NOTIFICATION OF INDEPENDENT CONTRAC15 TORS.—Each contract shall include a requirement that the

16 contractor shall provide, to each person who performs

17 work under the contract and who is treated by the contrac18 tor as an independent contractor for purposes of employ19 ment taxes, a notification regarding—

20 ‘‘(1) all obligations of the independent contrac21 tor under Federal and State law to withhold and pay

22 employment taxes with respect to work performed

23 under the contract by the independent contractor

24 (including work performed by employees of the inde25 pendent contractor); and
41

•S 2504 IS

1 ‘‘(2) all statutory rights and protections that

2 are available under Federal and State law to em3 ployees of the contractor and are not available to the

4 independent contractor (including employees of the

5 independent contractor), including rights and protec6 tions under the Fair Labor Standards Act of 1938,

7 the Occupational Safety and Health Act of 1978,

8 and title VII of the Civil Rights Act of 1964.

9 ‘‘(d) RIGHT OF ACTION.—A person who submits a

10 bid or proposal for a contract and who suffers damages

11 as a result of the award of the contract to a person who

12 knowingly and willfully submits a certification under sub13 section (b) with respect to the contract that is false, may

14 bring an action for damages against the person awarded

15 the contract in any district court of the United States in

16 which the defendant is located.

17 ‘‘(e) APPLICABILITY.—This section applies to con18 tracts entered into under chapter 137 of this title.

19 ‘‘(f) DEFINITIONS.—In this section:

20 ‘‘(1) The term ‘employment tax’ means any tax

21 imposed by subtitle C of the Internal Revenue Code

22 of 1986.

23 ‘‘(2) The term ‘contract’ includes subcontracts.
42

•S 2504 IS

1 ‘‘(3) The term ‘misclassify’ means to treat as

2 an independent contractor an individual who is an

3 employee.’’.

4 (2) The table of sections at the beginning of such

5 chapter is amended by adding at the end the following

6 new item:

‘‘2393a. Classification of persons as employees and independent contractors.’’.

7 (b) APPLICABILITY.—Section 2393a of title 10, Unit8 ed States Code, as added by subsection (a), shall apply

9 to—

10 (1) contracts entered into under chapter 137 of

11 title 10, United States Code, after the expiration of

12 the 180-day period beginning on the date of the en13 actment of this Act;

14 (2) subcontracts under contracts covered by

15 paragraph (1); and

16 (3) options exercised under any such contract

17 after the expiration of the 180-day period beginning

18 on the date of the enactment of this Act.

19 TITLE IV—FEDERAL

20 TEMPORARY EMPLOYEES

21 SEC. 401. LIMITATION ON TEMPORARY EMPLOYMENT.

22 It is the sense of Congress that—

23 (1) the Federal Government has appointed and

24 maintained employees in temporary positions that

25 are not appropriate for temporary appointments,
43

•S 2504 IS

1 both by virtue of the type of work and the extended

2 lengths of service in some cases;

3 (2) when a vacancy occurs in a position that

4 was filled continuously by a temporary employee in

5 the year preceding the vacancy, the Federal Govern6 ment should not fill such vacancy with a temporary

7 employee, regardless of whether the individual pre8 viously employed would refill such position;

9 (3) when a vacancy occurs in a position as de10 scribed under paragraph (2), the Federal Govern11 ment should not establish a successor position and

12 fill it with a temporary employee; and

13 (4) when a vacancy occurs in a position that

14 was filled continuously by a temporary employee in

15 the year preceding the vacancy, and the Federal

16 Government determines there is a need for the serv17 ices performed in such position, the Federal Govern18 ment should establish a permanent or term position

19 to fill such need whenever feasible.

20 SEC. 402. HEALTH BENEFITS.

21 (a) ELIMINATION OF SERVICE REQUIREMENT AND

22 EMPLOYEE PAYMENT OF GOVERNMENT CONTRIBU23 TION.—Section 8906a of title 5, United States Code, is

24 amended to read as follows:
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•S 2504 IS

1 ‘‘§ 8906a. Temporary employees

2 ‘‘The Office of Personnel Management shall prescribe

3 regulations to provide for offering health benefits plans

4 to temporary employees under the provisions of this chap5 ter.’’.

6 (b) INCLUSION OF TEMPORARY EMPLOYEES.—Sec7 tion 8913(b) of title 5, United States Code, is amended—

8 (1) in the second sentence by striking out ‘‘,

9 such as short-term appointment, seasonal or inter10 mittent employment, and employment of like na11 ture’’; and

12 (2) in paragraph (4) by striking out ‘‘and is eli13 gible under section 8906a(a)’’.

14 SEC. 403. RETIREMENT BENEFITS.

15 (a) INCLUSION OF CERTAIN TEMPORARY EMPLOY16 EES UNDER CIVIL SERVICE RETIREMENT SYSTEM.—The

17 second sentence of section 8347(g) of title 5, United

18 States Code, is amended by inserting before the period ‘‘or

19 any temporary employee who, in the aggregate, has com20 pleted 5 years of service (in the same or different posi21 tions), including service as a temporary employee.’’.

22 (b) INCLUSION OF CERTAIN TEMPORARY EMPLOY23 EES UNDER FEDERAL EMPLOYEES RETIREMENT SYS24 TEM.—Section 8402(c)(1) of title 5, United States Code,

25 is amended by inserting before the period ‘‘or any tem26 porary employee who, in the aggregate, has completed 5
45

•S 2504 IS

1 years of service (in the same or different positions), in2 cluding service as a temporary employee’’.

3 (c) CREDITABILITY OF SERVICE.—In administering

4 the amendments made under this section, service may be

5 taken into account whether performed before, on, or after

6 the date of the enactment of this Act, for all purposes

7 of chapters 83 and 84 of title 5, United States Code (in8 cluding employee and Government contributions relating

9 to such service and the computation of annuities). An em10 ployee shall have service as a temporary employee (which

11 would otherwise be excluded except for the amendments

12 made under subsections (a) and (b) and for which no em13 ployee contributions have been made) used for the com14 putation of an annuity under chapters 83 and 84 of title

15 5, United States Code (as amended by this Act) if the

16 employee deposits such contributions (including interest)

17 as determined by the Office of Personnel Management re18 lating to such service into the Civil Service Retirement and

19 Disability Fund. All appropriate employing agencies shall

20 pay the applicable contributions into the Civil Service Re21 tirement and Disability Fund. The Office of Personnel

22 Management shall prescribe regulations to carry out the

23 provisions of this subsection.
46

•S 2504 IS

1 SEC. 404. LIFE INSURANCE BENEFITS.

2 Section 8716(b) of title 5, United States Code, is

3 amended—

4 (1) in the second sentence, by striking out ‘‘,

5 such as short-term appointment, seasonal, intermit6 tent employment, and employment of like nature’’;

7 (2) in paragraph (2) by striking out ‘‘or’’ after

8 the semicolon;

9 (3) in paragraph (3) by striking out the period

10 and inserting in lieu thereof ‘‘; or’’; and

11 (4) by adding at the end thereof the following:

12 ‘‘(4) a temporary employee who has completed

13 6 months of current continuous employment (in the

14 same position or different positions), including serv15 ice as a temporary employee, excluding any break in

16 service of 5 days or less.’’.

Æ

S 2504 IS——2

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S 2504 IS——4