I 
117TH CONGRESS 
1ST SESSION H. R. 3471 
To amend the Securities Exchange Act of 1934 to require issuers to disclose 
to the Securities and Exchange Commission information regarding work-
force management policies, practices, and performance, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2021 
Mrs. AXNE introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To amend the Securities Exchange Act of 1934 to require 
issuers to disclose to the Securities and Exchange Com-
mission information regarding workforce management 
policies, practices, and performance, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Investment 
Disclosure Act of 2021’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) One of the keys to the 20th century post- 
war economic success of the United States was the 
ability to prepare workers over the course of their 
lives for success through multiple sectors across soci-
ety. Unfortunately, during the several decades pre-
ceding the date of enactment of this Act, there has 
been a shift in business norms and in society. While 
Congress recognizes that the technology and job 
skills required for some jobs has changed dramati-
cally, the private and public partnership to hire 
workers at different education levels and invest in 
them for the long-term is broken. 
(2) Available data from the 10-year period pre-
ceding the date of enactment of this Act suggests 
that businesses are investing less in worker training 
during that time period, not more. 
(3) In the wake of the 2008 global financial cri-
sis, there was a well-documented decline in overall 
business investment. That decline coincides with the 
wage polarization of workers and an increase in 
spending on share buybacks and dividends, leading 
several researchers to conclude that companies are 
de-emphasizing investment at the expense of increas-
ing returns for shareholders. The onset of a global 
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pandemic may make that trend worse, especially 
with respect to investments in workers. 
(4) As part of the overall decline in investment 
described in paragraph (3), publicly traded compa-
nies are being provided with incentives to prioritize 
investments in physical assets over investments in 
their workforces, meaning that those companies are 
investing in robots instead of individuals. In fact, 
there are already signs that automation has in-
creased during the COVID–19 pandemic. 
(5) More than ever, the Federal Government, 
through company disclosure practices, needs to un-
derstand exactly how companies are investing in 
their workers. Over the several months preceding the 
date of enactment of this Act, companies across the 
United States have taken extreme actions to adapt 
and respond to evolving workforce challenges pre-
sented by COVID–19. 
(6) JUST Capital has been tracking the re-
sponses of the Standard and Poor’s 100 largest pub-
lic companies to their workers and has found wide 
variation in the policies implemented, as well as with 
respect to the disclosure of those policies. Through 
different responses to their workforces, from layoffs 
to workplace safety to paid leave, the COVID–19 
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pandemic is exposing the myriad ways that work-
force management practices of companies pose oper-
ational and reputational risks for short- and long- 
term financial performance. 
(7) Even before the COVID–19 pandemic, there 
was a growing body of research establishing a rela-
tionship between measurable workforce management, 
which is the way that companies manage their em-
ployees, and firm performance. In a study of 2,000 
large companies, Harvard Law School’s Labor and 
Work Life Program found that forward-thinking 
workforce policies that prioritize workers, such as 
how companies train, retain, and pay their workers, 
are correlated with long-term financial performance. 
(8) Disclosure of workforce management poli-
cies should be part of a Government-wide economic 
recovery strategy. Just as a set of generally accepted 
accounting 
principles 
(commonly 
known 
as 
‘‘GAAP’’) was urgently adopted after the Great De-
pression, standardized, comparable metrics of work-
force disclosure requirements in the context of the 
COVID–19 pandemic are critical for investors to ac-
curately measure and project company performance, 
both in the present and in the future. 
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(9) Because many companies already track 
workforce metrics internally, moving towards a 
transparent disclosure regime would allow investors 
to better judge whether companies are managing 
risks 
and 
making 
the 
investments 
in 
their 
workforces that are needed for long-term growth. 
(10) Businesses increasingly rely on workforce 
innovation and intellectual capital for competitive-
ness. Workplace benefits, particularly paid sick 
leave, medical leave, and flexible work arrangements, 
critically support employee mental and physical well- 
being. 
(11) Race- and gender-based workplace dis-
crimination have been tied to negative health out-
comes, as well as lower productivity, trust, morale, 
and satisfaction and higher rates of absenteeism and 
turnover. Organizational reporting on practices to 
reduce discrimination can increase employee job sat-
isfaction, performance, and engagement. 
(12) According to the Centers for Disease Con-
trol and Prevention, work-related stress is the lead-
ing occupational health risk and, per the American 
Institute of Stress, job stress costs United States in-
dustry more than $300,000,000,000 per year in ac-
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cidents, absenteeism, employee turnover, diminished 
productivity, and medical, legal, and insurance costs. 
(13) Employee health and well-being is a key 
asset to delivering long-term value, with 80 percent 
of public companies that took concrete actions on 
health and well-being having seen larger improve-
ments in financial performance. 
(14) Organizational well-being interventions can 
create cost savings of up to 10 dollars for every dol-
lar invested. Specifically, for every dollar that em-
ployers spend on workplace disease prevention and 
well-being programs, there is a $3.27 reduction in 
employee medical costs and a $2.73 reduction in ab-
senteeism costs. Employers that implement work-
place health promotion programs have seen reduc-
tions in sick leave, health plan costs, and workers’ 
compensation and disability insurance costs of ap-
proximately 25 percent. 
(15) The Centers for Disease Control and Pre-
vention has found that preventable chronic condi-
tions are a major contributor to insurance premium 
and employee medical claim costs, which are at an 
all-time high, and a Milken Institute study shows 
that employers paid $2,600,000,000,000 in 2016 for 
the indirect costs of employee chronic disease due to 
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work absences, lost wages, and reduced economic 
productivity. 
(16) The COVID–19 pandemic has severely im-
pacted employee physical, mental, and emotional 
well-being by increasing stress, depression, burnout, 
and mortality rates of chronic disease and by reduc-
ing work-life balance and financial security, with 
these challenges likely to persist due to uncertainty 
and instability even as employees return to work. 
Before the COVID–19 pandemic, but especially in 
the face of that pandemic, employers that advance 
policies and practices that support workforce health, 
safety, and well-being are likely to outperform com-
petitors and benefit from lower costs. 
SEC. 3. DISCLOSURES RELATING TO WORKFORCE MANAGE-
MENT. 
Section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m) is amended by adding at the end the 
following: 
‘‘(s) DISCLOSURES RELATING TO WORKFORCE MAN-
AGEMENT.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘contingent worker’ includes an individual per-
forming work on a temporary basis or as an inde-
pendent contractor. 
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‘‘(2) REGULATIONS.—Not later than 2 years 
after the date of enactment of this subsection, the 
Commission, in consultation with the Secretary of 
Labor, the Secretary of Commerce, the Secretary of 
Treasury, and the Attorney General, shall promul-
gate regulations that require each issuer required to 
file an annual report under subsection (a) or section 
15(d) to disclose in that report information regard-
ing workforce management policies, practices, and 
performance with respect to the issuer. 
‘‘(3) RULES.—Consistent with the requirement 
under paragraph (4), each annual report filed with 
the Commission in accordance with the regulations 
promulgated under paragraph (2) shall include dis-
closure of the following with respect to the issuer fil-
ing the report for the year covered by the report: 
‘‘(A) Workforce demographic information, 
including— 
‘‘(i) the number of full-time employ-
ees, the number of part-time employees, 
and the number of contingent workers (in-
cluding temporary and contract workers) 
with respect to the issuer, which shall in-
clude demographic information with re-
spect to those categories of individuals, in-
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cluding information regarding race, eth-
nicity, and gender; 
‘‘(ii) any policies or practices of the 
issuer relating to subcontracting, outsourc-
ing, and insourcing individuals to perform 
work for the issuer, which shall include de-
mographic information with respect to 
those individuals, including information re-
garding race, ethnicity, and gender; and 
‘‘(iii) whether the percentage of con-
tingent workers with respect to the issuer 
has changed, including temporary and con-
tract workers, as compared with the pre-
vious annual report filed by the issuer 
under this subsection. 
‘‘(B) Workforce stability information, in-
cluding information about the voluntary turn-
over or retention rate, the involuntary turnover 
rate, the internal hiring rate, and the internal 
promotion rate, and the horizontal job change 
rate by quintile and demographic information. 
‘‘(C) Workforce composition, including— 
‘‘(i) data on diversity (including ra-
cial, ethnic, and gender composition) for 
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senior executives and other individuals in 
the workforce; and 
‘‘(ii) any policies, audits, and pro-
gramming expenditures relating to diver-
sity. 
‘‘(D) Workforce skills and capabilities, in-
cluding— 
‘‘(i) information about training and 
cross-training of employees and contingent 
workers by quintile and demographic infor-
mation, distinguishing between compliance 
training, career development training, job 
performance or technical training, and 
training tied to recognized postsecondary 
credentials; 
‘‘(ii) average number of hours of 
training for each employee and contingent 
worker; 
‘‘(iii) total spending on training for all 
employees and contingent workers; 
‘‘(iv) average spending per employee 
or contingent worker; 
‘‘(v) training utilization rates; and 
‘‘(vi) whether completion of training 
opportunities translates into value added 
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benefit for workers, as determined by wage 
increases or internal promotions. 
‘‘(E) Workforce health, safety, and well- 
being, including information regarding— 
‘‘(i) the frequency, severity, and lost 
time due to injuries, physical and mental 
illness, and fatalities; 
‘‘(ii) the scope, frequency, and total 
expenditure on workplace health, safety, 
and well-being programs; 
‘‘(iii) the total dollar value of assessed 
fines under the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 651 et 
seq.); 
‘‘(iv) the total number of actions 
brought under section 13 of the Occupa-
tional Safety and Health Act of 1970 (29 
U.S.C. 662) to prevent imminent dangers; 
‘‘(v) the total number of actions 
brought against the issuer under section 
11(c) of the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 660(c)); 
‘‘(vi) any findings of workplace har-
assment or workplace discrimination dur-
ing the 5 fiscal year period of the issuer 
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preceding the fiscal year in which the re-
port is filed; and 
‘‘(vii) communication channels and 
grievance mechanisms in place for employ-
ees and contingent workers. 
‘‘(F) Workforce compensation and incen-
tives, including information regarding— 
‘‘(i) total workforce costs, including 
salaries and wages, health benefits, other 
ancillary benefit costs, and pension costs; 
‘‘(ii) workforce benefits, including 
paid leave, health care, child care, and re-
tirement, including information regarding 
benefits that are provided— 
‘‘(I) to full-time employees and 
not to part-time employees; or 
‘‘(II) to employees and not to 
contingent workers; 
‘‘(iii) total contributions made to un-
employment insurance by the issuer, how 
many employees to whom those contribu-
tions apply, and the total amount paid in 
unemployment compensation to individuals 
who were laid off by the issuer; 
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‘‘(iv) policies and practices regarding 
how performance, productivity, equity, and 
sustainability are considered when setting 
pay and making promotion decisions; and 
‘‘(v) policies and practices relating to 
any incentives and bonuses provided to em-
ployees and any policies or practices de-
signed to counter any risks created by such 
incentives and bonuses. 
‘‘(G) Workforce recruiting and needs, in-
cluding— 
‘‘(i) the number of new jobs created, 
seeking 
to 
be 
filled, 
and 
filled, 
disaggregated based on classification sta-
tus; 
‘‘(ii) the share of new jobs that re-
quire a bachelor’s degree or higher; 
‘‘(iii) information regarding the qual-
ity of hire for jobs described in clause (i); 
and 
‘‘(iv) the retention rate for individuals 
hired to fill the jobs described in clause (i). 
‘‘(H) Workforce engagement and produc-
tivity, including information regarding policies 
and practices of the issuer relating to— 
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‘‘(i) engagement, productivity, and 
mental well-being of employees and contin-
gent workers, as determined in consulta-
tion with the Department of Labor; and 
‘‘(ii) freedom of association and work- 
life balance initiatives, including flexibility 
and the ability of the workforce to work re-
motely, as determined in consultation with 
the Department of Labor. 
‘‘(4) DISAGGREGATION OF INFORMATION.—To 
the maximum extent feasible, the information de-
scribed in paragraph (3) shall be disaggregated by— 
‘‘(A) the workforce composition described 
in subparagraph (C) of that paragraph; 
‘‘(B) wage quintiles of the employees of the 
issuer for the year covered by the applicable an-
nual report; and 
‘‘(C) the employment status of individuals 
performing services for the issuer, including 
whether those individuals are full-time employ-
ees, part-time employees, or contingent workers. 
‘‘(5) TREATMENT OF EMERGING GROWTH COM-
PANIES.—The Commission may exempt emerging 
growth companies from any disclosure required 
under subparagraph (D), (E), (F), (G), or (H) of 
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paragraph (3) if the Commission determines that 
such an exemption is necessary or appropriate in the 
public interest. 
‘‘(6) FALSE OR MISLEADING STATEMENTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), it shall be unlawful for any 
person, in any report or document filed under 
this subsection, to make or cause to be made 
any untrue statement of a material fact or omit 
to state a material fact required to be stated in 
the report or document or necessary to make 
the statement made, in the light of the cir-
cumstances under which it is made, not mis-
leading. 
‘‘(B) EXCEPTION.—A person shall not be 
liable under subparagraph (A) if the person 
shows that the person had, after reasonable in-
vestigation, reasonable ground to believe, and 
did believe, at the time the applicable statement 
was made, that the statement was true and that 
there was no omission to state a material fact 
necessary to make the statement made, in the 
light of the circumstances under which it is 
made, not misleading. 
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‘‘(C) NO
PRIVATE
RIGHT
OF
ACTION.— 
Nothing in this paragraph may be construed as 
creating a private right of action. 
‘‘(7) EXEMPTION.—This subsection shall not 
apply to an investment company registered under 
section 8 of the Investment Company Act of 1940 
(15 U.S.C. 80a–8).’’. 
SEC. 4. BACKSTOP. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘Commission’’ means the Securi-
ties and Exchange Commission; 
(2) the term ‘‘covered issuer’’ means an issuer 
that is required to file an annual report under sec-
tion 13(a) or section 15(d) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78m(a), 78o(d)); and 
(3) the term ‘‘issuer’’ has the meaning given 
the term in section 3(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)). 
(b) COMPLIANCE.—If, as of the date that is 2 years 
after the date of enactment of this Act, the Commission 
has not promulgated the regulations required under sub-
section (s) of section 13 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78m), as added by section 3 of this 
Act, a covered issuer, during the period beginning on that 
date and ending on the date on which the Commission pro-
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mulgates those regulations, shall be deemed to be in com-
pliance with such subsection (s) if disclosures set forth in 
the annual report of the covered issuer satisfy the public 
disclosure standards of the International Organization for 
Standardization’s ISO 30414, or any successor standards 
for external workforce reporting, as supplemented or ad-
justed by rules, guidance, or other comments from the 
Commission. 
SEC. 5. SEC STUDY. 
(a) DEFINITIONS.—In this section, the terms ‘‘Com-
mission’’ and ‘‘issuer’’ have the meanings given those 
terms in section 4(a). 
(b) STUDY.—The Commission shall conduct a study 
about the value to investors of— 
(1) information about the human rights com-
mitments of issuers required to file annual reports 
under section 13(a) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78m(a)), including information 
about any principles used to evaluate risk, constitu-
ency consultation processes, and supplier due dili-
gence; and 
(2) with respect to issuers required to file an-
nual reports under section 13(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m(a)), informa-
tion about— 
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(A) violations of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 201 et seq.) by those 
issuers; 
(B) violations of worker misclassification 
by those issuers; 
(C) surveys regarding employee satisfac-
tion, well-being, and engagement; 
(D) the number and overall percentage of 
quality jobs, as determined by compensation 
above median wage and comprehensive em-
ployer-provided benefits; and 
(E) information about workforce invest-
ment trends, as determined by at least a 3-year 
time period. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Commission shall submit to 
Congress a report that contains the results of the study 
required to be conducted under subsection (b), with rec-
ommendations for additional disclosure regulations based 
on the findings, and any actions the Commission plans to 
take to enhance disclosures based on the findings. 
Æ 
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