I 
116TH CONGRESS 
1ST SESSION H. R. 4419 
To amend the Internal Revenue Code of 1986 to ensure that workers and 
communities that are responsible for record corporate profits benefit 
from the wealth that those workers and communities help to create, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2019 
Mr. KENNEDY introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to ensure 
that workers and communities that are responsible for 
record corporate profits benefit from the wealth that 
those workers and communities help to create, 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 ‘‘Worker Dividend Act 
of 2019’’. 
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SEC. 2. FAILURE OF EMPLOYER TO PAY WORKER DIVI-
DENDS. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by inserting after chapter 
36 the following new chapter: 
‘‘CHAPTER 37—PROVISIONS RELATING TO 
WORKER DIVIDENDS 
‘‘Sec. 4501. Failure of employer to pay worker dividends. 
‘‘SEC. 4501. FAILURE OF EMPLOYER TO PAY WORKER DIVI-
DENDS. 
‘‘(a) GENERAL RULE.—If, for a taxable year in which 
a covered employer repurchases any securities of the em-
ployer on the open market, the covered employer fails to 
pay to its employees a worker dividend meeting the re-
quirements of subsection (b), then there is hereby imposed 
on the covered employer a tax equal to the lesser of the 
amounts determined under subparagraphs (A) and (B) of 
subsection (b)(1). 
‘‘(b) WORKER DIVIDEND.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘worker dividend’ 
means a payment made by a covered employer to 
employees of the employer at locations in the United 
States, if the total of all such payments made during 
the taxable year is not less than the lesser of— 
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‘‘(A) the amount paid by the employer to 
repurchase securities of the employer on the 
open market during the taxable year, and 
‘‘(B) 50 percent of the amount by which 
the earnings before interest, taxes, depreciation, 
and amortization of the employer during the 
taxable year in the United States exceed 
$250,000,000. 
‘‘(2) PAYMENTS TO BE IN ADDITION TO COM-
PENSATION.—Such term shall not include any pay-
ment unless such payment is in addition to, and (in-
cluding by election of the employee) is not included 
in (except as provided in paragraph (5)) or sub-
stituted for, any cash or other compensation ordi-
narily paid to the employee by the employer. 
‘‘(3) PAYMENTS
TO
BE
EQUAL.—Such term 
shall not include any payment unless the amount of 
the payment made to each employee of the employer 
in the United States is of an equal amount. Notwith-
standing the preceding sentence, in the case of an 
employee employed at less than full time, the pay-
ment to such employee may be in a pro rata amount 
based on the hours worked by the employee per 
week. 
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‘‘(4) TIMING OF PAYMENT.—Such term shall 
not include any payment which is not made within 
60 days of the close of the taxable year to which it 
relates. 
‘‘(5) OPTION TO INCREASE COMPENSATION.—A 
covered employer may, by providing such docu-
mentation as the Secretary may require, elect to 
have the worker dividend paid to employees in the 
form of an increase in regular compensation. In the 
case of a covered employer making such election— 
‘‘(A) paragraph (4) shall not apply, and 
‘‘(B) the term ‘worker dividend’ includes 
only increases in compensation which are so 
documented and which are paid within 1 cal-
endar year of the date the increase goes into ef-
fect. 
‘‘(c) COVERED EMPLOYER.—For purposes of this 
section, the term ‘covered employer’ means, for any tax-
able year, any entity the stock of which is publicly traded. 
‘‘(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52 
shall be treated as a single employer for purposes of deter-
mining whether an individual is an employee of a covered 
employer. 
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‘‘(e) REGULATIONS.—The Secretary, in consultation 
with the Secretary of Labor, shall promulgate regulations 
or other guidance to ensure compliance with this section, 
including the determination of full time status and rules 
to prevent avoidance of the purposes of subsection (b)(2). 
‘‘(f) REPORTING.—With respect to any taxable year 
in which a covered employer repurchases any securities of 
the employer on the open market, not later than the due 
date for the return of tax for such taxable year such em-
ployer shall report to the Secretary and the Chairman of 
the Securities and Exchange Commission, in such manner 
as the Secretary shall determine, the amount of any work-
er dividend paid during such taxable year and any other 
information as the Secretary shall require.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle D of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to chapter 
36 the following new item: 
‘‘CHAPTER 37—PROVISIONS RELATING TO WORKER DIVIDENDS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to repurchases of employer securi-
ties in taxable years beginning after the date of the enact-
ment of this Act. 
Æ 
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