I 

115TH CONGRESS 

2D SESSION H. R. 7145 

To prohibit certain large business entities from purchasing the securities 

of those entities on national securities exchanges, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 16, 2018 

Mr. KHANNA (for himself, Ms. GABBARD, Ms. CLARKE of New York, Ms. 

SCHAKOWSKY, and Mr. RASKIN) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committee on Education and the Workforce, 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 prohibit certain large business entities from purchasing 

the securities of those entities on national securities exchanges, and for other purposes. 

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 ‘‘Stop Welfare for Any 

5 Large Monopoly Amassing Revenue from Taxpayers Act 

6 of 2018’’. 


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1 SEC. 2. PROHIBITION. 

2 (a) IN GENERAL.—A large employer that commits a 

3 violation described in subsection (b) may not purchase a 

4 security of the large employer on a national securities ex5 change during the fiscal year in which the large employer 

6 commits that violation. 

7 (b) VIOLATIONS DESCRIBED.—A violation described 

8 in this subsection is, with respect to a large employer, any 

9 of the following: 

10 (1) The large employer pays an employee of the 

11 large employer wages, as such term is defined for 

12 purposes of the Fair Labor Standards Act of 1938 

13 (29 U.S.C. 201 et seq.) except excluding any amount 

14 of cash tips received in the course of employment by 

15 an employee, at a rate that is less than $15 per 

16 hour. 

17 (2) The large employer interferes with, re18 strains, or denies the exercise of, or the attempt to 

19 exercise, any right provided under subsection (c). 

20 (3) The compensation ratio with respect to the 

21 large employer is in an amount that is more than 

22 150. 

23 (c) EARNED PAID SICK TIME.— 

24 (1) EARNING OF PAID SICK TIME.—A large em25 ployer— 


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1 (A) shall provide each employee employed 

2 by the large employer not less than 1 hour of 

3 earned paid sick time for every 30 hours 

4 worked; and 

5 (B) shall not be required to permit an em6 ployee to earn, under this subsection, more than 

7 56 hours of paid sick time in a year, unless the 

8 large employer chooses to set a higher limit. 

9 (2) EXEMPT EMPLOYEES.— 

10 (A) IN GENERAL.—Except as provided in 

11 paragraph (3), for purposes of this subsection, 

12 an employee who is exempt from overtime re13 quirements under section 13(a)(1) of the Fair 

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

15 213(a)(1)) shall be assumed to work 40 hours 

16 in each workweek. 

17 (B) SHORTER NORMAL WORKWEEK.—If 

18 the normal workweek of an employee described 

19 in subparagraph (A) is less than 40 hours, the 

20 employee shall earn paid sick time based upon 

21 that normal workweek. 

22 (3) DATES FOR BEGINNING TO EARN PAID SICK

23 TIME AND USE.— 

24 (A) IN GENERAL.—An employee shall 

25 begin to earn paid sick time under this subVerDate Sep 11 2014 23:54 Nov 19, 2018 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7145.IH H7145

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1 section at the commencement of the employ2 ment of the employee. 

3 (B) USE.—An employee— 

4 (i) shall be entitled to use paid sick 

5 time that the employee has earned begin6 ning on the 60th calendar day following 

7 commencement of the employment of the 

8 employee; and 

9 (ii) after the 60th calendar day de10 scribed in clause (i), may use the paid sick 

11 time of the employee as the time is earned. 

12 (C) DISCRETION OF EMPLOYER.—A large 

13 employer may, at the discretion of the large em14 ployer— 

15 (i) loan paid sick time to an employee 

16 for use by such employee in advance of the 

17 employee earning such sick time as pro18 vided in this subsection; and 

19 (ii) permit the use of paid sick time 

20 by an employee before the 60th day of em21 ployment of the employee. 

22 (4) CARRYOVER.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), paid sick time earned under 


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1 this subsection shall carry over from one year 

2 to the next. 

3 (B) CONSTRUCTION.—This subsection 

4 shall not be construed to require a large em5 ployer to permit an employee to earn more than 

6 56 hours of earned paid sick time at a given 

7 time. 

8 (5) LARGE EMPLOYERS WITH EXISTING POLI9 CIES.—Any large employer with a paid leave policy 

10 that makes available an amount of paid leave that 

11 is sufficient to meet the requirements of this sub12 section and that may be used for the same purposes 

13 and under the same conditions as the purposes and 

14 conditions described in section 3(13) shall not be re15 quired to permit an employee to earn additional paid 

16 sick time under this subsection. 

17 (6) CONSTRUCTION.—Nothing in this sub18 section shall be construed as requiring financial or 

19 other reimbursement to an employee from a large 

20 employer upon the employee’s termination, resigna21 tion, retirement, or other separation from employ22 ment for earned paid sick time that has not been 

23 used. 

24 (7) REINSTATEMENT.—If an employee is sepa25 rated from employment with a large employer and, 


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1 not later than 1 year after the date on which the 

2 employee is separated, is rehired by the same large 

3 employer— 

4 (A) the large employer shall reinstate the 

5 previously earned paid sick time of the em6 ployee; and 

7 (B) the employee shall be entitled to use 

8 the earned paid sick time and earn additional 

9 paid sick time at the recommencement of em10 ployment with the large employer. 

11 (8) PROHIBITION.—A large employer may not 

12 require, as a condition of providing paid sick time 

13 under this subsection, that the employee involved 

14 search for or find a replacement employee to cover 

15 the hours during which the employee is using paid 

16 sick time. 

17 (d) ENFORCEMENT.— 

18 (1) IN GENERAL.—With respect to a large em19 ployer that makes a purchase that violates sub20 section (a)— 

21 (A) the Commission may impose a civil 

22 penalty on the large employer in an amount 

23 that is equal to the amount paid by the large 

24 employer to make that purchase; and 


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1 (B) an individual who is an executive offi2 cer of the large employer on the date on which 

3 that purchase is made may not serve as an ex4 ecutive officer of the large employer, any suc5 cessor of the large employer, or any affiliate of 

6 the large employer— 

7 (i) if the purchase is the first instance 

8 in which the large employer has violated 

9 subsection (a), during the 1-year period be10 ginning on the date on which that pur11 chase is made; and 

12 (ii) if the purchase is not the first in13 stance in which the large employer has vio14 lated subsection (a), at any time after the 

15 date on which that purchase is made. 

16 (2) REGULATIONS.—Not later than 90 days 

17 after the date of enactment of this Act, the Commis18 sion shall promulgate regulations that instruct na19 tional securities exchanges and large employers re20 garding how those entities shall comply with the re21 quirements of this Act. 

22 SEC. 3. DEFINITIONS. 

23 In this Act: 

24 (1) AFFILIATE.—The term ‘‘affiliate’’ means, 

25 with respect to a large employer— 


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1 (A) any incorporated or unincorporated 

2 business association or trust that controls the 

3 large employer; 

4 (B) any incorporated or unincorporated 

5 business association or trust that is controlled 

6 by an entity described in subparagraph (A); and 

7 (C) any incorporated or unincorporated 

8 business association or trust that is controlled 

9 by the large employer. 

10 (2) CHILD.—The term ‘‘child’’ means a biologi11 cal, foster, or adopted child, a stepchild, a child of 

12 a domestic partner, a legal ward, or a child of a per13 son standing in loco parentis, who is— 

14 (A) younger than 18 years of age; or 

15 (B) not younger than 18 years of age and 

16 incapable of self-care because of a mental or 

17 physical disability. 

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

19 means the Securities and Exchange Commission. 

20 (4) COMMITTED RELATIONSHIP.—The term 

21 ‘‘committed relationship’’— 

22 (A) means a relationship between 2 indi23 viduals, each of whom is not younger than 18 

24 years of age, in which— 


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1 (i) each individual is the sole domestic 

2 partner of the other individual; and 

3 (ii) both individuals share responsi4 bility for a significant measure of each oth5 er’s common welfare; and 

6 (B) includes any relationship described in 

7 subparagraph (A) between 2 individuals, includ8 ing individuals of the same sex, that is granted 

9 legal recognition by a State, or a political sub10 division of a State, as a marriage or analogous 

11 relationship, including a civil union or domestic 

12 partnership. 

13 (5) COMPENSATION RATIO.—The term ‘‘com14 pensation ratio’’ means, with respect to a large em15 ployer in a fiscal year, the quotient obtained by di16 viding, for that fiscal year— 

17 (A) as submitted by the large employer 

18 under section 229.402(c) of title 17, Code of 

19 Federal Regulations, or any successor regula20 tion, the greater of the compensation of— 

21 (i) the chief executive officer of the 

22 large employer; or 

23 (ii) the most highly compensated em24 ployee of the large employer; by 


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1 (B) the median of all wages (not including 

2 any amount of cash tips received in the course 

3 of employment by an employee), paid to all em4 ployees of the large employer who are employed 

5 in the United States. 

6 (6) DATING VIOLENCE.—The term ‘‘dating vio7 lence’’ has the meaning given the term in section 

8 40002(a) of the Violence Against Women Act of 

9 1994 (34 U.S.C. 12291(a)). 

10 (7) DOMESTIC PARTNER.—The term ‘‘domestic 

11 partner’’ means, with respect to an individual, an12 other individual with whom the individual is in a 

13 committed relationship. 

14 (8) DOMESTIC VIOLENCE.—The term ‘‘domestic 

15 violence’’— 

16 (A) has the meaning given the term in sec17 tion 40002(a) of the Violence Against Women 

18 Act of 1994 (34 U.S.C. 12291(a)), except that 

19 the reference in that section to the term ‘‘juris20 diction receiving grant monies’’ shall be deemed 

21 to mean the jurisdiction in which the victim 

22 lives or the jurisdiction in which the employer 

23 involved is located; and 

24 (B) includes dating violence. 


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1 (9) EMPLOYEE.—The term ‘‘employee’’ 

2 means— 

3 (A) any full-time or part-time employee; 

4 (B) any individual who is a full-time or 

5 part-time independent contractor (including any 

6 employee of that independent contractor) and 

7 provides services to an employer, unless— 

8 (i) the individual is free from control 

9 and direction in connection with the per10 formance of the service, both under the 

11 contract for the performance of service and 

12 in fact; 

13 (ii) the service is performed outside 

14 the usual course of the business of the em15 ployer; and 

16 (iii) the individual is customarily en17 gaged in an independently established 

18 trade, occupation, profession, or business 

19 of the same nature as that involved in the 

20 service performed; and 

21 (C) any individual who is a full-time or 

22 part-time joint employee, provided that the em23 ployer possesses, reserves, or exercises sufficient 

24 direct or indirect control over the essential 


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1 terms and conditions of employment of the em2 ployee. 

3 (10) EXECUTIVE OFFICER.—The term ‘‘execu4 tive officer’’, with respect to a large employer— 

5 (A) means any individual who participates, 

6 or has authority to participate (other than in 

7 the capacity of a director), in major policy8 making functions of the large employer, without 

9 regard to whether— 

10 (i) the individual has an official title; 

11 or 

12 (ii) the individual receives a salary or 

13 other compensation; and 

14 (B) includes the chairman of the board of 

15 directors of the large employer, the president of 

16 the large employer, each vice president of the 

17 large employer, and the chief financial officer of 

18 the large employer, unless— 

19 (i) a resolution of the board of direc20 tors of the large employer or the bylaws of 

21 the large employer explicitly exclude that 

22 individual from participation (other than in 

23 the capacity of a director) in major policy24 making functions of the large employer; 

25 and 


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1 (ii) the individual does not participate 

2 in major policymaking functions of the 

3 large employer. 

4 (11) LARGE EMPLOYER.— 

5 (A) IN GENERAL.—The term ‘‘large em6 ployer’’ means, with respect to a fiscal year, an 

7 employer that— 

8 (i) employed an average of not fewer 

9 than 500 employees on business days dur10 ing the preceding fiscal year; and 

11 (ii) is subject to part 229 of title 17, 

12 Code of Federal Regulations, or any suc13 cessor regulations, for that fiscal year. 

14 (B) RULES FOR DETERMINING EMPLOYER

15 SIZE.—For purposes of this paragraph: 

16 (i) APPLICATION OF AGGREGATION

17 RULE FOR EMPLOYERS.—All persons treat18 ed as a single employer under subsection 

19 (b), (c), (m), or (o) of section 414 of the 

20 Internal Revenue Code of 1986 shall be 

21 treated as 1 employer. 

22 (ii) EMPLOYERS NOT IN EXISTENCE

23 IN PRECEDING YEAR.—In the case of an 

24 employer that was not in existence 

25 throughout the preceding fiscal year, the 


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1 determination of whether the employer is a 

2 large employer shall be based on the aver3 age number of employees that the em4 ployer is reasonably expected to employ on 

5 business days in the current fiscal year. 

6 (iii) PREDECESSORS.—Any reference 

7 in this paragraph to an employer shall in8 clude a reference to any predecessor of the 

9 employer. 

10 (12) NATIONAL SECURITIES EXCHANGE.—The 

11 term ‘‘national securities exchange’’ means an ex12 change that is registered as a national securities ex13 change under section 6 of the Securities Exchange 

14 Act of 1934 (15 U.S.C. 78f). 

15 (13) PAID SICK TIME.—The term ‘‘paid sick 

16 time’’ means an increment of compensated leave that 

17 can be earned by an employee for use during an ab18 sence from employment for an absence resulting 

19 from— 

20 (A) a physical or mental illness, injury, or 

21 medical condition of the employee or a related 

22 person with respect to the employee; 

23 (B) obtaining professional medical diag24 nosis or care, or preventive medical care, for the 


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1 employee or a related person with respect to the 

2 employee; 

3 (C) caring for— 

4 (i) a related person with respect to 

5 the employee, who has any of the condi6 tions or needs for diagnosis or care de7 scribed in subparagraph (A) or (B); 

8 (ii) a child, in a situation in which the 

9 employee is required to attend— 

10 (I) a school meeting; or 

11 (II) a meeting at a place where 

12 the child is receiving care necessitated 

13 by the health condition or disability of 

14 the child; or 

15 (iii) a related person with respect to 

16 the employee, who is otherwise in need of 

17 care; or 

18 (D) domestic violence, sexual assault, or 

19 stalking, if the time is to— 

20 (i) seek medical attention for the em21 ployee, or a related person with respect to 

22 the employee, to recover from physical or 

23 psychological injury or disability caused by 

24 domestic violence, sexual assault, or stalk25 ing; 


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1 (ii) obtain or assist a related person 

2 with respect to the employee in obtaining 

3 services from a victim services organiza4 tion; 

5 (iii) obtain or assist a related person 

6 with respect to the employee in obtaining 

7 psychological or other counseling; 

8 (iv) seek relocation; or 

9 (v) take legal action, including pre10 paring for or participating in any civil or 

11 criminal legal proceeding relating to or re12 sulting from domestic violence, sexual as13 sault, or stalking. 

14 (14) PARENT.—The term ‘‘parent’’ means a bi15 ological, foster, or adoptive parent of an employee, 

16 a stepparent, parent-in-law, or parent of a domestic 

17 partner, of an employee, or a legal guardian or other 

18 person who stood in loco parentis to an employee 

19 when the employee was a child. 

20 (15) RELATED PERSON.—The term ‘‘related 

21 person’’ means, with respect to an employee— 

22 (A) a child of the employee; 

23 (B) a parent of the employee; 

24 (C) a spouse of the employee; 

25 (D) a domestic partner of the employee; or 


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1 (E) any other individual related by blood 

2 or affinity whose close association with the em3 ployee is the equivalent of a family relationship. 

4 (16) SECURITY.—The term ‘‘security’’ has the 

5 meaning given the term in section 3(a) of the Secu6 rities Exchange Act of 1934 (15 U.S.C. 78c(a)). 

7 (17) SEXUAL ASSAULT; STALKING.—The terms 

8 ‘‘sexual assault’’ and ‘‘stalking’’ have the meanings 

9 given the terms in section 40002(a) of the Violence 

10 Against Women Act of 1994 (34 U.S.C. 12291(a)). 

11 (18) SPOUSE.—The term ‘‘spouse’’, with re12 spect to an employee, has the meaning given the 

13 term by the marriage laws of the State in which the 

14 marriage was celebrated. 

15 (19) STATE.—The term ‘‘State’’ has the mean16 ing given the term in section 3 of the Fair Labor 

17 Standards Act of 1938 (29 U.S.C. 203). 

18 (20) SUCCESSOR.—The term ‘‘successor’’ 

19 means, with respect to a person or other incor20 porated or unincorporated business association or 

21 trust (referred to in this paragraph as a ‘‘covered 

22 person’’), any person, business association, or trust 

23 that acquires, through merger, acquisition, or other 

24 means, not less than 25 percent of the assets of that 

25 covered person. 


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1 (21) VICTIM SERVICES ORGANIZATION.—The 

2 term ‘‘victim services organization’’— 

3 (A) means a nonprofit, nongovernmental 

4 organization that— 

5 (i) provides assistance to a victim of 

6 domestic violence, sexual assault, or stalk7 ing; or 

8 (ii) advocates for a victim described in 

9 clause (i); and 

10 (B) includes— 

11 (i) a rape crisis center; 

12 (ii) an organization carrying out a do13 mestic violence, sexual assault, or stalking 

14 prevention or treatment program; 

15 (iii) an organization operating a shel16 ter or providing counseling services; and 

17 (iv) a legal services organization or 

18 other organization providing assistance 

19 through the legal process. 

Æ 


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