total number of hours worked for the 
taxpayer by the employee, not to ex-
ceed 2,000 hours per employee, di-
vided by 2,000, and 
‘‘(II) in the case of a salaried 
full-time employee, the total number 
of weeks worked for the taxpayer by 
the employee divided by 52. 
‘‘(ii) CONTRACTED
FULL-TIME
EM-
PLOYEE.—The term ‘contracted full-time 
employee’ means an individual engaged by 
the taxpayer to provide a specific set of 
services established pursuant to the terms 
and conditions of a written employment 
contract that delineates the length of em-
ployment, the salary and bonuses (if any) 
to be paid, and the benefits that accrue to 
that individual. 
‘‘(iii) 
FOREIGN
FULL-TIME
EM-
PLOYEE.—The term ‘foreign full-time em-
ployee’ means a full-time employee of the 
taxpayer that is employed at a location 
other than the United States. 
VerDate Sep 11 2014 
04:21 Jun 16, 2021
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3301.IH
H3301
kjohnson on DSK79L0C42PROD with BILLS
‘‘(iv) FULL-TIME
EMPLOYEE.—The 
term ‘full-time employee’ means an em-
ployee of the taxpayer that either— 
‘‘(I) is paid compensation by the 
taxpayer for services of not less than 
an average of 35 hours per week, or 
‘‘(II) is a salaried employee of 
the taxpayer and is paid compensation 
during the taxable year for full-time 
employment. 
‘‘(5) CONTROLLED GROUPS.—For purposes of 
this subsection, all persons treated as a single em-
ployer under subsection (b), (c), (m) or (o) of sec-
tion 414 shall be treated as one person. 
‘‘(6) REPORTS.—The taxpayer shall furnish 
such reports to the Secretary with respect to com-
pensation and such other matters as the Secretary 
may require. The reports required by this subsection 
shall be filed at such time and in such manner as 
may be required by the Secretary. 
‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such regulations and other guidance as may 
be necessary or appropriate to carry out this sub-
section, including any guidelines regarding the deter-
VerDate Sep 11 2014 
04:21 Jun 16, 2021
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3301.IH
H3301
kjohnson on DSK79L0C42PROD with BILLS
mination of wages, average compensation, and com-
pensation ratio.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. CONTRACTING PREFERENCE FOR ENTITIES WITH 
CERTAIN PAY RATIOS. 
(a) AMENDMENT.—Chapter 47 of title 41, United 
States Code, is amended by inserting after section 4714 
the following new section: 
‘‘§ 4715. Preference for entities with certain pay ra-
tios 
‘‘(a) PREFERENCE.—In the evaluation of bids or pro-
posals for a contract for the procurement of goods or serv-
ices, the head of an executive agency shall provide a pref-
erence to an entity that for the previous calendar year has 
a compensation ratio of less than 50-to-1. 
‘‘(b) COMPENSATION RATIO DEFINED.—In this sec-
tion, the term ‘compensation ratio’ has the meaning given 
that term in section 11(e)(3)(A) of the Internal Revenue 
Code of 1986, except the ratio determined for the calendar 
year preceding the calendar year of the contract to which 
this section applies.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
VerDate Sep 11 2014 
04:21 Jun 16, 2021
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3301.IH
H3301
kjohnson on DSK79L0C42PROD with BILLS
after the item relating to section 4714 the following new 
item: 
‘‘4715. Preference for entities with certain pay ratios.’’. 
Æ 
VerDate Sep 11 2014 
04:21 Jun 16, 2021
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H3301.IH
H3301
kjohnson on DSK79L0C42PROD with BILLS