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 subse-
quently 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 ex-
changes, and for other purposes. 
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 ‘‘Stop Welfare for Any 
Large Monopoly Amassing Revenue from Taxpayers Act 
of 2018’’. 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 2. PROHIBITION. 
(a) IN GENERAL.—A large employer that commits a 
violation described in subsection (b) may not purchase a 
security of the large employer on a national securities ex-
change during the fiscal year in which the large employer 
commits that violation. 
(b) VIOLATIONS DESCRIBED.—A violation described 
in this subsection is, with respect to a large employer, any 
of the following: 
(1) The large employer pays an employee of the 
large employer wages, as such term is defined for 
purposes of the Fair Labor Standards Act of 1938 
(29 U.S.C. 201 et seq.) except excluding any amount 
of cash tips received in the course of employment by 
an employee, at a rate that is less than $15 per 
hour. 
(2) The large employer interferes with, re-
strains, or denies the exercise of, or the attempt to 
exercise, any right provided under subsection (c). 
(3) The compensation ratio with respect to the 
large employer is in an amount that is more than 
150. 
(c) EARNED PAID SICK TIME.— 
(1) EARNING OF PAID SICK TIME.—A large em-
ployer— 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(A) shall provide each employee employed 
by the large employer not less than 1 hour of 
earned paid sick time for every 30 hours 
worked; and 
(B) shall not be required to permit an em-
ployee to earn, under this subsection, more than 
56 hours of paid sick time in a year, unless the 
large employer chooses to set a higher limit. 
(2) EXEMPT EMPLOYEES.— 
(A) IN GENERAL.—Except as provided in 
paragraph (3), for purposes of this subsection, 
an employee who is exempt from overtime re-
quirements under section 13(a)(1) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
213(a)(1)) shall be assumed to work 40 hours 
in each workweek. 
(B) SHORTER
NORMAL
WORKWEEK.—If 
the normal workweek of an employee described 
in subparagraph (A) is less than 40 hours, the 
employee shall earn paid sick time based upon 
that normal workweek. 
(3) DATES FOR BEGINNING TO EARN PAID SICK 
TIME AND USE.— 
(A) IN
GENERAL.—An employee shall 
begin to earn paid sick time under this sub-
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
not later than 1 year after the date on which the 
employee is separated, is rehired by the same large 
employer— 
(A) the large employer shall reinstate the 
previously earned paid sick time of the em-
ployee; and 
(B) the employee shall be entitled to use 
the earned paid sick time and earn additional 
paid sick time at the recommencement of em-
ployment with the large employer. 
(8) PROHIBITION.—A large employer may not 
require, as a condition of providing paid sick time 
under this subsection, that the employee involved 
search for or find a replacement employee to cover 
the hours during which the employee is using paid 
sick time. 
(d) ENFORCEMENT.— 
(1) IN GENERAL.—With respect to a large em-
ployer that makes a purchase that violates sub-
section (a)— 
(A) the Commission may impose a civil 
penalty on the large employer in an amount 
that is equal to the amount paid by the large 
employer to make that purchase; and 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(B) an individual who is an executive offi-
cer of the large employer on the date on which 
that purchase is made may not serve as an ex-
ecutive officer of the large employer, any suc-
cessor of the large employer, or any affiliate of 
the large employer— 
(i) if the purchase is the first instance 
in which the large employer has violated 
subsection (a), during the 1-year period be-
ginning on the date on which that pur-
chase is made; and 
(ii) if the purchase is not the first in-
stance in which the large employer has vio-
lated subsection (a), at any time after the 
date on which that purchase is made. 
(2) REGULATIONS.—Not later than 90 days 
after the date of enactment of this Act, the Commis-
sion shall promulgate regulations that instruct na-
tional securities exchanges and large employers re-
garding how those entities shall comply with the re-
quirements of this Act. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AFFILIATE.—The term ‘‘affiliate’’ means, 
with respect to a large employer— 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(A) any incorporated or unincorporated 
business association or trust that controls the 
large employer; 
(B) any incorporated or unincorporated 
business association or trust that is controlled 
by an entity described in subparagraph (A); and 
(C) any incorporated or unincorporated 
business association or trust that is controlled 
by the large employer. 
(2) CHILD.—The term ‘‘child’’ means a biologi-
cal, foster, or adopted child, a stepchild, a child of 
a domestic partner, a legal ward, or a child of a per-
son standing in loco parentis, who is— 
(A) younger than 18 years of age; or 
(B) not younger than 18 years of age and 
incapable of self-care because of a mental or 
physical disability. 
(3) COMMISSION.—The term ‘‘Commission’’ 
means the Securities and Exchange Commission. 
(4) COMMITTED
RELATIONSHIP.—The term 
‘‘committed relationship’’— 
(A) means a relationship between 2 indi-
viduals, each of whom is not younger than 18 
years of age, in which— 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(i) each individual is the sole domestic 
partner of the other individual; and 
(ii) both individuals share responsi-
bility for a significant measure of each oth-
er’s common welfare; and 
(B) includes any relationship described in 
subparagraph (A) between 2 individuals, includ-
ing individuals of the same sex, that is granted 
legal recognition by a State, or a political sub-
division of a State, as a marriage or analogous 
relationship, including a civil union or domestic 
partnership. 
(5) COMPENSATION
RATIO.—The term ‘‘com-
pensation ratio’’ means, with respect to a large em-
ployer in a fiscal year, the quotient obtained by di-
viding, for that fiscal year— 
(A) as submitted by the large employer 
under section 229.402(c) of title 17, Code of 
Federal Regulations, or any successor regula-
tion, the greater of the compensation of— 
(i) the chief executive officer of the 
large employer; or 
(ii) the most highly compensated em-
ployee of the large employer; by 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(B) the median of all wages (not including 
any amount of cash tips received in the course 
of employment by an employee), paid to all em-
ployees of the large employer who are employed 
in the United States. 
(6) DATING VIOLENCE.—The term ‘‘dating vio-
lence’’ has the meaning given the term in section 
40002(a) of the Violence Against Women Act of 
1994 (34 U.S.C. 12291(a)). 
(7) DOMESTIC PARTNER.—The term ‘‘domestic 
partner’’ means, with respect to an individual, an-
other individual with whom the individual is in a 
committed relationship. 
(8) DOMESTIC VIOLENCE.—The term ‘‘domestic 
violence’’— 
(A) has the meaning given the term in sec-
tion 40002(a) of the Violence Against Women 
Act of 1994 (34 U.S.C. 12291(a)), except that 
the reference in that section to the term ‘‘juris-
diction receiving grant monies’’ shall be deemed 
to mean the jurisdiction in which the victim 
lives or the jurisdiction in which the employer 
involved is located; and 
(B) includes dating violence. 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(9) 
EMPLOYEE.—The 
term 
‘‘employee’’ 
means— 
(A) any full-time or part-time employee; 
(B) any individual who is a full-time or 
part-time independent contractor (including any 
employee of that independent contractor) and 
provides services to an employer, unless— 
(i) the individual is free from control 
and direction in connection with the per-
formance of the service, both under the 
contract for the performance of service and 
in fact; 
(ii) the service is performed outside 
the usual course of the business of the em-
ployer; and 
(iii) the individual is customarily en-
gaged in an independently established 
trade, occupation, profession, or business 
of the same nature as that involved in the 
service performed; and 
(C) any individual who is a full-time or 
part-time joint employee, provided that the em-
ployer possesses, reserves, or exercises sufficient 
direct or indirect control over the essential 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
terms and conditions of employment of the em-
ployee. 
(10) EXECUTIVE OFFICER.—The term ‘‘execu-
tive officer’’, with respect to a large employer— 
(A) means any individual who participates, 
or has authority to participate (other than in 
the capacity of a director), in major policy-
making functions of the large employer, without 
regard to whether— 
(i) the individual has an official title; 
or 
(ii) the individual receives a salary or 
other compensation; and 
(B) includes the chairman of the board of 
directors of the large employer, the president of 
the large employer, each vice president of the 
large employer, and the chief financial officer of 
the large employer, unless— 
(i) a resolution of the board of direc-
tors of the large employer or the bylaws of 
the large employer explicitly exclude that 
individual from participation (other than in 
the capacity of a director) in major policy-
making functions of the large employer; 
and 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(ii) the individual does not participate 
in major policymaking functions of the 
large employer. 
(11) LARGE EMPLOYER.— 
(A) IN GENERAL.—The term ‘‘large em-
ployer’’ means, with respect to a fiscal year, an 
employer that— 
(i) employed an average of not fewer 
than 500 employees on business days dur-
ing the preceding fiscal year; and 
(ii) is subject to part 229 of title 17, 
Code of Federal Regulations, or any suc-
cessor regulations, for that fiscal year. 
(B) RULES FOR DETERMINING EMPLOYER 
SIZE.—For purposes of this paragraph: 
(i) APPLICATION
OF
AGGREGATION 
RULE FOR EMPLOYERS.—All persons treat-
ed as a single employer under subsection 
(b), (c), (m), or (o) of section 414 of the 
Internal Revenue Code of 1986 shall be 
treated as 1 employer. 
(ii) EMPLOYERS NOT IN EXISTENCE 
IN PRECEDING YEAR.—In the case of an 
employer 
that 
was 
not 
in 
existence 
throughout the preceding fiscal year, the 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
determination of whether the employer is a 
large employer shall be based on the aver-
age number of employees that the em-
ployer is reasonably expected to employ on 
business days in the current fiscal year. 
(iii) PREDECESSORS.—Any reference 
in this paragraph to an employer shall in-
clude a reference to any predecessor of the 
employer. 
(12) NATIONAL SECURITIES EXCHANGE.—The 
term ‘‘national securities exchange’’ means an ex-
change that is registered as a national securities ex-
change under section 6 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78f). 
(13) PAID SICK TIME.—The term ‘‘paid sick 
time’’ means an increment of compensated leave that 
can be earned by an employee for use during an ab-
sence from employment for an absence resulting 
from— 
(A) a physical or mental illness, injury, or 
medical condition of the employee or a related 
person with respect to the employee; 
(B) obtaining professional medical diag-
nosis or care, or preventive medical care, for the 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
employee or a related person with respect to the 
employee; 
(C) caring for— 
(i) a related person with respect to 
the employee, who has any of the condi-
tions or needs for diagnosis or care de-
scribed in subparagraph (A) or (B); 
(ii) a child, in a situation in which the 
employee is required to attend— 
(I) a school meeting; or 
(II) a meeting at a place where 
the child is receiving care necessitated 
by the health condition or disability of 
the child; or 
(iii) a related person with respect to 
the employee, who is otherwise in need of 
care; or 
(D) domestic violence, sexual assault, or 
stalking, if the time is to— 
(i) seek medical attention for the em-
ployee, or a related person with respect to 
the employee, to recover from physical or 
psychological injury or disability caused by 
domestic violence, sexual assault, or stalk-
ing; 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(ii) obtain or assist a related person 
with respect to the employee in obtaining 
services from a victim services organiza-
tion; 
(iii) obtain or assist a related person 
with respect to the employee in obtaining 
psychological or other counseling; 
(iv) seek relocation; or 
(v) take legal action, including pre-
paring for or participating in any civil or 
criminal legal proceeding relating to or re-
sulting from domestic violence, sexual as-
sault, or stalking. 
(14) PARENT.—The term ‘‘parent’’ means a bi-
ological, foster, or adoptive parent of an employee, 
a stepparent, parent-in-law, or parent of a domestic 
partner, of an employee, or a legal guardian or other 
person who stood in loco parentis to an employee 
when the employee was a child. 
(15) RELATED
PERSON.—The term ‘‘related 
person’’ means, with respect to an employee— 
(A) a child of the employee; 
(B) a parent of the employee; 
(C) a spouse of the employee; 
(D) a domestic partner of the employee; or 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(E) any other individual related by blood 
or affinity whose close association with the em-
ployee is the equivalent of a family relationship. 
(16) SECURITY.—The term ‘‘security’’ has the 
meaning given the term in section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78c(a)). 
(17) SEXUAL ASSAULT; STALKING.—The terms 
‘‘sexual assault’’ and ‘‘stalking’’ have the meanings 
given the terms in section 40002(a) of the Violence 
Against Women Act of 1994 (34 U.S.C. 12291(a)). 
(18) SPOUSE.—The term ‘‘spouse’’, with re-
spect to an employee, has the meaning given the 
term by the marriage laws of the State in which the 
marriage was celebrated. 
(19) STATE.—The term ‘‘State’’ has the mean-
ing given the term in section 3 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203). 
(20) 
SUCCESSOR.—The 
term 
‘‘successor’’ 
means, with respect to a person or other incor-
porated or unincorporated business association or 
trust (referred to in this paragraph as a ‘‘covered 
person’’), any person, business association, or trust 
that acquires, through merger, acquisition, or other 
means, not less than 25 percent of the assets of that 
covered person. 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS
(21) VICTIM
SERVICES
ORGANIZATION.—The 
term ‘‘victim services organization’’— 
(A) means a nonprofit, nongovernmental 
organization that— 
(i) provides assistance to a victim of 
domestic violence, sexual assault, or stalk-
ing; or 
(ii) advocates for a victim described in 
clause (i); and 
(B) includes— 
(i) a rape crisis center; 
(ii) an organization carrying out a do-
mestic violence, sexual assault, or stalking 
prevention or treatment program; 
(iii) an organization operating a shel-
ter or providing counseling services; and 
(iv) a legal services organization or 
other organization providing assistance 
through the legal process. 
Æ 
VerDate Sep 11 2014 
23:54 Nov 19, 2018
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6301
E:\BILLS\H7145.IH
H7145
pamtmann on DSKBFK8HB2PROD with BILLS