252 
‘‘(1) IN GENERAL.—In any action or proceeding 
for a violation of this Act, including any regulation 
under this Act, the 10 largest shareholders of a farm 
labor contractor, agricultural employer, or agricul-
tural association, as determined by the fair value for 
their beneficial interest as of the beginning of the 
period during which such violation occurred, shall— 
‘‘(A) jointly and severally be personally lia-
ble for all violations of this Act, including any 
regulation under this Act, and for all damages 
awarded and civil penalties assessed for such 
violations; and 
‘‘(B) notwithstanding subparagraph (A), 
be personally responsible for 10 percent of any 
damages, civil penalties, or other restitution or 
fees assessed against the farm labor contractor, 
agricultural employer, or agricultural associa-
tion for all violations, with the farm labor con-
tractor, agricultural employer, or agricultural 
association (respectively) responsible for not 
more than 90 percent. 
‘‘(2) NO REIMBURSEMENT.—A farm labor con-
tractor, agricultural employer, or agricultural asso-
ciation may not refund in any way any amounts paid 
by a shareholder under paragraph (1).’’. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00252
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
253 
(6) DAVIS-BACON ACT.—Section 3144c of title 
40, United States Code, as amended by subsection 
(b)(6), is further amended by adding at the end the 
following: 
‘‘(e) JOINT LIABILITY OF LARGE SHAREHOLDERS.— 
‘‘(1) IN GENERAL.—In any action or proceeding 
for a violation of this subchapter, the 10 largest 
shareholders of a contractor or subcontractor, as de-
termined by the fair value for their beneficial inter-
est as of the beginning of the period during which 
the violation occurred, shall— 
‘‘(A) jointly and severally be personally lia-
ble for all violations of this subchapter, and for 
all damages awarded and civil penalties as-
sessed for violations of this subchapter; and 
‘‘(B) notwithstanding subparagraph (A), 
be personally responsible for 10 percent of any 
damages, civil penalties, or other restitution or 
fees assessed against the contractor or subcon-
tractor for the violations, with the contractor or 
subcontractor responsible for not more than 90 
percent. 
‘‘(2) NO
REIMBURSEMENT.—A contractor or 
subcontractor may not refund in any way any 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00253
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
254 
amounts paid by a shareholder under paragraph 
(1).’’. 
(7) MCNAMARA-O’HARA
SERVICE
CONTRACT 
ACT.—Section 6707 of title 41, United States Code, 
as amended by subsection (b)(7)(A), is further 
amended by adding at the end the following: 
‘‘(b) JOINT LIABILITY OF LARGE SHAREHOLDERS.— 
‘‘(1) IN GENERAL.—In any action or proceeding 
for a violation of this chapter, the 10 largest share-
holders of a contractor, as determined by the fair 
value for their beneficial interest as of the beginning 
of the period during which the violation occurred, 
shall— 
‘‘(A) jointly and severally be personally lia-
ble for all violations of this chapter, and for all 
damages awarded and civil penalties assessed 
for violations of this chapter; and 
‘‘(B) notwithstanding subparagraph (A), 
be personally responsible for 10 percent of any 
damages, civil penalties, or other restitution or 
fees assessed against the contractor for the vio-
lations, with the contractor responsible for not 
more than 90 percent. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00254
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
255 
‘‘(2) NO REIMBURSEMENT.—A contractor may 
not refund in any way any amounts paid by a share-
holder under paragraph (1).’’. 
(8) WALSH-HEALEY PUBLIC CONTRACTS ACT.— 
Section 6506b of title 41, United States Code, as 
amended by subsection (b)(8), is further amended by 
adding at the end the following: 
‘‘(e) JOINT LIABILITY OF LARGE SHAREHOLDERS.— 
‘‘(1) IN GENERAL.—In any action or proceeding 
for a violation of this chapter, the 10 largest share-
holders of a contractor, as determined by the fair 
value for their beneficial interest as of the beginning 
of the period during which the violation occurred, 
shall— 
‘‘(A) jointly and severally be personally lia-
ble for all violations of this chapter, and for all 
damages awarded and civil penalties assessed 
for violations of this chapter; and 
‘‘(B) notwithstanding subparagraph (A), 
be personally responsible for 10 percent of any 
damages, civil penalties, or other restitution or 
fees assessed against the contractor for the vio-
lations, with the contractor responsible for not 
more than 90 percent. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00255
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
256 
‘‘(2) NO REIMBURSEMENT.—A contractor may 
not refund in any way any amounts paid by a share-
holder under paragraph (1).’’. 
(9) FAMILY
AND
MEDICAL
LEAVE
ACT
OF 
1993.—Section 107 of the Family and Medical 
Leave Act of 1993 (29 U.S.C. 2617), as amended by 
subsection (b)(9), is further amended by inserting 
after subsection (e) the following: 
‘‘(f) JOINT LIABILITY OF LARGE SHAREHOLDERS.— 
‘‘(1) IN GENERAL.—In any action or proceeding 
for a violation of this Act, the 10 largest share-
holders of an employer, as determined by the fair 
value for their beneficial interest as of the beginning 
of the period during which the violation occurred, 
shall— 
‘‘(A) jointly and severally be personally lia-
ble for all violations of this Act and for all dam-
ages awarded and civil penalties assessed for 
violations of this Act; and 
‘‘(B) notwithstanding subparagraph (A), 
be personally responsible for 10 percent of any 
damages, civil penalties, or other restitution or 
fees assessed against the employer for the viola-
tions, with the employer responsible for not 
more than 90 percent. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00256
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
257 
‘‘(2) NO REIMBURSEMENT.—An employer may 
not refund in any way any amounts paid by a share-
holder under paragraph (1).’’. 
SEC. 203. FRANCHISORS. 
(a) FAIR LABOR STANDARDS ACT OF 1938.— 
(1) IN
GENERAL.—Section 3(d) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203(d)), as 
amended by section 202(a)(1), is further amended 
by adding at the end the following: 
‘‘(7) FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights 
and protections of this Act with regard to an em-
ployee, in any case where a franchisee of the 
franchisor is responsible for the rights and protec-
tions of this Act for the employee.’’. 
(2) INDEMNIFICATION.—Section 16 of the Fair 
Labor Standards Act of 1938, as amended by sec-
tion 202(c)(1), is further amended by adding at the 
end the following: 
‘‘(i) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—An 
employer or entity that is found to be in violation of 
this Act and is a franchisee shall have the right to 
indemnification as described in paragraph (2) from 
the franchisor, in any case where the violation was— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00257
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
258 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00258
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
259 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(b) NATIONAL LABOR RELATIONS ACT.— 
(1) IN GENERAL.—Section 2(2) of the National 
Labor Relations Act (29 U.S.C. 152(2)), as amend-
ed by section 202(a)(2), is further amended by add-
ing at the end the following: 
‘‘(E) FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights 
and protections of this Act with regard to an em-
ployee, in any case where a franchisee of the 
franchisor is responsible for the rights and protec-
tions of this Act for the employee.’’. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00259
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
260 
(2) INDEMNIFICATION.—Section 12 of the Na-
tional Labor Relations Act (29 U.S.C. 162), as 
amended by section 202(c)(2), is further amended 
by adding at the end the following: 
‘‘(g) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—An 
employer or entity that is found to be in violation of 
this Act and is a franchisee shall have the right to 
indemnification as described in paragraph (2) from 
the franchisor, in any case where the violation was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00260
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
261 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(c) OCCUPATIONAL SAFETY AND HEALTH ACT OF 
1970.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00261
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
262 
(1) IN GENERAL.—Section 3(5) of the Occupa-
tional Safety and Health Act of 1970 (29 U.S.C. 
652(5)), as amended by section 202(a)(3), is further 
amended by adding at the end the following: 
‘‘(F) FRANCHISORS AND FRANCHISEES.— 
A franchisor shall also be responsible for the 
rights and protections of this Act with regard 
to an employee, in any case where a franchisee 
of the franchisor is responsible for the rights 
and protections of this Act for the employee.’’. 
(2) INDEMNIFICATION.—Section 17 of the Oc-
cupational Safety and Health Act of 1970 (29 
U.S.C. 666), as amended by section 202(c)(3), is 
further amended by adding at the end the following: 
‘‘(o) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—An 
employer or other entity that is a franchisee and is 
found to be in violation of this Act shall have the 
right to indemnification as described in paragraph 
(2) from the franchisor, in any case where the viola-
tion was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00262
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
263 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00263
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
264 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(d) FEDERAL MINE SAFETY AND HEALTH ACT OF 
1977.— 
(1) IN GENERAL.—Section 4B of the Federal 
Mine Safety and Health Act of 1977, as amended by 
section 202(a)(4), is further amended by adding at 
the end the following: 
‘‘(c) 
FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights and pro-
tections of this Act with regard to a miner, in any case 
where a franchisee of the franchisor is responsible for the 
rights and protections of this Act for the miner.’’. 
(2) INDEMNIFICATION.—Section 118 of the 
Federal Mine Safety and Health Act of 1977, as 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00264
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
265 
amended by section 202(c)(4), is further amended 
by adding at the end the following: 
‘‘(c) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—An 
operator or other entity that is found to be in viola-
tion of this Act and is a franchisee shall have the 
right to indemnification as described in paragraph 
(2) from the franchisor, in any case where the viola-
tion was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00265
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
266 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(e) MIGRANT AND SEASONAL AGRICULTURAL WORK-
ER PROTECTION ACT.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00266
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
267 
(1) IN GENERAL.—Section 5(c) of the Migrant 
and Seasonal Agricultural Worker Protection Act, as 
amended by section 202(a)(5), is further amended 
by adding at the end the following: 
‘‘(4) FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights 
and protections of this Act with regard to an indi-
vidual who is a migrant agricultural worker or sea-
sonal agricultural worker employed by a farm labor 
contractor, agricultural employer, or agricultural as-
sociation, in any case where a franchisee of the 
franchisor is responsible for the rights and protec-
tions of this Act for the migrant agricultural worker 
or seasonal agricultural worker.’’. 
(2) INDEMNIFICATION.—Section 505 of the Mi-
grant and Seasonal Agricultural Worker Protection 
Act, as amended by section 202(c)(5), is further 
amended by adding at the end the following: 
‘‘(c) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—A 
farm labor contractor, agricultural employer, agricul-
tural association, or other entity that is found to be 
in violation of this Act and is a franchisee shall have 
the right to indemnification as described in para-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00267
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
268 
graph (2) from the franchisor, in any case where the 
violation was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00268
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
269 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(f) DAVIS-BACON ACT.— 
(1) IN GENERAL.—Section 3144b of title 40, 
United States Code, as amended by section 
202(a)(6), is further amended by adding at the end 
the following: 
‘‘(c) 
FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights and pro-
tections of this subchapter with regard to a laborer or me-
chanic in any case where a franchisee of the franchisor 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00269
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
270 
is responsible for the rights and protections of this sub-
chapter for the laborer or mechanic.’’. 
(2) INDEMNIFICATION.—Section 3144c of title 
40, United States Code, as amended by section 
202(c)(6), is further amended by adding at the end 
the following: 
‘‘(f) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—A 
contractor, subcontractor, or other entity that is 
found to be in violation of this subchapter and is a 
franchisee shall have the right to indemnification as 
described in paragraph (2) from the franchisor, in 
any case where the violation was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00270
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
271 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
subchapter. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00271
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
272 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(g) MCNAMARA-O’HARA SERVICE CONTRACT ACT.— 
(1) IN GENERAL.—Section 6701a of title 41, 
United States Code, as amended by section 
202(a)(7), is further amended by adding at the end 
the following: 
‘‘(c) 
FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights and pro-
tections of this chapter with regard to a service employee 
in any case where a franchisee of the franchisor is respon-
sible for the rights and protections of this chapter for the 
service employee.’’. 
(2) INDEMNIFICATION.—Section 6707 of title 
41, United States Code, as amended by section 
202(c)(7), is further amended by adding at the end 
the following: 
‘‘(c) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—A 
contractor, subcontractor, or other entity that is 
found to be in violation of this chapter and is a 
franchisee shall have the right to indemnification as 
described in paragraph (2) from the franchisor, in 
any case where the violation was— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00272
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
273 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
chapter. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00273
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
274 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(h) WALSH-HEALEY PUBLIC CONTRACTS ACT.— 
(1) IN GENERAL.—Section 6501b of title 41, 
United States Code, as amended by section 
202(a)(8), is further amended by adding at the end 
the following: 
‘‘(c) 
FRANCHISORS
AND
FRANCHISEES.—A 
franchisor shall also be responsible for the rights and pro-
tections of this chapter with regard to an individual em-
ployed under a contract to which this chapter applies, in 
any case where a franchisee of the franchisor is respon-
sible for the rights and protections of this chapter for the 
individual.’’. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00274
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
275 
(2) INDEMNIFICATION.—Section 6506b of title 
41, United States Code, as amended by section 
202(c)(8), is further amended by adding at the end 
the following: 
‘‘(f) FRANCHISEES AND FRANCHISORS.— 
‘‘(1) INDEMNIFICATION
BY
FRANCHISOR.—A 
contractor, subcontractor, or other entity that is 
found to be in violation of this chapter and is a 
franchisee shall have the right to indemnification as 
described in paragraph (2) from the franchisor, in 
any case where the violation was— 
‘‘(A) at the behest of the franchisor; 
‘‘(B) at the direction of the franchisor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00275
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
278 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
franchisor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the franchisor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a franchisee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
franchisor of all compensatory and punitive 
damages, civil monetary penalties, attorney’s 
fees, or other amounts required to be paid by 
the franchisee as a result of the violation of this 
Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
require or otherwise request a franchisee to 
waive the franchisee’s right to indemnification 
under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—If a 
franchisor violates subparagraph (A)— 
‘‘(i) any indemnification waiver ob-
tained shall be null and void; and 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00278
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
279 
‘‘(ii) the franchisor shall be subject to 
a civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A franchisor shall not 
end a franchise agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a franchisee for pursuing indemnifica-
tion under this subsection. 
‘‘(B) REMEDY AND CIVIL PENALTY.—Any 
franchisor who violates subparagraph (A) shall 
be subject to a civil penalty of $100,000.’’. 
(j) FEDERAL UNEMPLOYMENT TAX ACT (FUTA).— 
(1) IN GENERAL.—Section 3306(w) of the In-
ternal Revenue Code of 1986, as amended by section 
202(a)(10), is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(5) Paragraph (7) of section 3(d) of such Act. 
‘‘(6) Subsection (i) of section 16 of such Act.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to services rendered on 
or after January 1, 2022. 
SEC. 204. TEMPORARY STAFFING COMPANIES. 
(a) RESPONSIBILITIES
OF EMPLOYERS UTILIZING 
EMPLOYEES OF STAFFING COMPANIES AND OTHER COV-
ERED EMPLOYEES.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00279
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
280 
(1) FAIR LABOR STANDARDS ACT OF 1938.— 
Section 3(d) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 203(d)), as amended by section 
203(a)(1), is further amended by adding at the end 
the following: 
‘‘(8) EMPLOYERS OF EMPLOYEES OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—An 
employer shall also be responsible for the rights and 
protections of this Act with regard to one or more 
covered employees (as defined in section 6(c)(1)) 
provided by another employer to perform labor for 
the employer.’’. 
(2) NATIONAL
LABOR
RELATIONS
ACT.—Sec-
tion 2(2) of the National Labor Relations Act (29 
U.S.C. 152(2)), as amended by section 203(b)(1), is 
further amended by adding at the end the following: 
‘‘(F) EMPLOYERS OF EMPLOYEES OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—An 
employer shall also be responsible for the rights and 
protections of this Act with regard to one or more 
covered employees (as defined in section 6(c)(1) of 
the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(c)(1))) provided by another employer to perform 
labor for the employer.’’. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00280
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
281 
(3) OCCUPATIONAL SAFETY AND HEALTH ACT 
OF 1970.—Section 3(5) of the Occupational Safety 
and Health Act of 1970 (29 U.S.C. 652(5)), as 
amended by section 203(c), is further amended by 
adding at the end the following: 
‘‘(G) EMPLOYERS
OF
EMPLOYEES
OF 
STAFFING
COMPANIES
AND
OTHER
COVERED 
EMPLOYEES.—An employer shall also be re-
sponsible for the rights and protections of this 
Act with regard to one or more covered employ-
ees (as defined in section 6(c)(1) of the Fair 
Labor Standards Act (29 U.S.C. 206(c)(1))) 
provided by another employer to perform labor 
for the employer.’’. 
(4) FEDERAL MINE SAFETY AND HEALTH ACT 
OF 1977.—Section 4B of the Federal Mine Safety 
and Health Act of 1977, as amended by section 
203(d)(1), is further amended by adding at the end 
the following: 
‘‘(d) EMPLOYERS
OF EMPLOYEES
OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—An op-
erator of a coal or other mine shall also be responsible 
for the rights and protections of this Act with regard to 
one or more covered employees (as defined in section 
6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00281
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
282 
206(c)(1))) provided by another employer to perform labor 
as miners for the operator.’’. 
(5) MIGRANT
AND
SEASONAL
AGRICULTURAL 
WORKER PROTECTION ACT.—Section 5(c) of the Mi-
grant and Seasonal Agricultural Worker Protection 
Act, as amended by section 203(e), is further 
amended by adding at the end the following: 
‘‘(5) EMPLOYERS OF EMPLOYEES OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—A 
farm labor contractor, agricultural employer, or agri-
cultural association shall also be responsible for the 
rights and protections of this Act with regard to one 
or more migrant agricultural workers or seasonal ag-
ricultural workers who— 
‘‘(A) are covered employees (as defined in 
section 6(c)(1) of the Fair Labor Standards Act 
of 1938); and 
‘‘(B) are provided by another employer to 
perform labor for the farm labor contractor, ag-
ricultural employer, or agricultural associa-
tion.’’. 
(6) DAVIS-BACON ACT.—Section 3144b of title 
40, United States Code, as amended by section 
203(f)(1), is further amended by adding at the end 
the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00282
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
283 
‘‘(d) EMPLOYERS
OF EMPLOYEES
OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—A con-
tractor or any subcontractor shall also be responsible for 
the rights and protections of this subchapter with regard 
to one or more laborers or mechanics who are covered em-
ployees (as defined in section 6(c)(1) of the Fair Labor 
Standards Act (29 U.S.C. 206(c)(1))) provided by another 
employer to perform labor for the contractor or subcon-
tractor under a contract to which this subchapter ap-
plies.’’. 
(7) MCNAMARA-O’HARA
SERVICE
CONTRACT 
ACT.—Section 6701a of title 41, United States 
Code, as amended by section 203(g), is further 
amended by adding at the end the following: 
‘‘(d) EMPLOYERS
OF EMPLOYEES
OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—A con-
tractor shall also be responsible for the rights and protec-
tions of this chapter with regard to one or more service 
employees who are covered employees (as defined in sec-
tion 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 
206(c)(1))) provided by another employer to perform labor 
for the contractor under a contract to which this chapter 
applies.’’. 
(8) WALSH-HEALEY PUBLIC CONTRACTS ACT.— 
Section 6501b of title 41, United States Code, as 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00283
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
284 
amended by section 203(h), is further amended by 
adding at the end the following: 
‘‘(d) EMPLOYERS
OF EMPLOYEES
OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.—A con-
tractor shall also be responsible for the rights and protec-
tions of this chapter with regard to one or more individ-
uals who are covered employees (as defined in section 
6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 
206(c)(1))) provided by another employer to perform labor 
in the manufacture or furnishing of materials, supplies, 
articles, or equipment for the contractor under a contract 
to which this chapter applies.’’. 
(9) FAMILY
AND
MEDICAL
LEAVE
ACT
OF 
1993.—Section 101(4) of the Family and Medical 
Leave Act of 1993 (29 U.S.C. 2611(4)), as amended 
by section 203(i), is further amended by adding at 
the end the following: 
‘‘(G) EMPLOYERS
OF
EMPLOYEES
OF 
STAFFING
COMPANIES
AND
OTHER
COVERED 
EMPLOYEES.—An employer shall also be re-
sponsible for the rights and protections of this 
Act with regard to one or more covered employ-
ees (as defined in section 6(c)(1) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00284
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
285 
206(c)(1))) provided by another employer to 
perform labor for the employer.’’. 
(10) FEDERAL
UNEMPLOYMENT
TAX
ACT 
(FUTA).— 
(A) IN GENERAL.—Section 3306(w) of the 
Internal Revenue Code of 1986, as amended by 
section 203(j), is amended by adding at the end 
the following new paragraph: 
‘‘(7) Paragraph (8) of section 3(d) of such 
Act.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by subparagraph (A) shall apply to serv-
ices rendered on or after January 1, 2022. 
(b) EQUITABLE TREATMENT FOR EMPLOYEES OF 
STAFFING COMPANIES AND OTHER COVERED EMPLOY-
EES.— 
(1) IN GENERAL.—Section 6 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206) is amended 
by inserting after subsection (b) the following: 
‘‘(c) EMPLOYEES
OF STAFFING COMPANIES
AND 
OTHER COVERED EMPLOYEES.— 
‘‘(1) DEFINITION OF COVERED EMPLOYEE.—In 
this subsection, the term ‘covered employee’ means 
an employee provided by another employer to per-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00285
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
286 
form labor for the employer, including a temporary 
or short-term contract employee. 
‘‘(2) WAGES FOR COVERED EMPLOYEES.— 
‘‘(A) IN GENERAL.—No employer shall pay 
wages to a covered employee provided by an-
other employer to perform labor for the em-
ployer, or allow a covered employee provided by 
another employer to perform labor for the em-
ployer at wages, at a rate less than the pre-
vailing rate at which the employer for whom the 
labor is performed pays wages to direct employ-
ees for similar work on jobs the performance of 
which requires similar skill, effort, and respon-
sibility, and which are performed under similar 
working conditions, except as provided in sub-
paragraph (B). 
‘‘(B) EXCEPTIONS.—An employer may pay 
a covered employee a wage at a rate less than 
the wage rate required under subparagraph (A) 
if— 
‘‘(i) such payment is made pursuant 
to— 
‘‘(I) a seniority system; 
‘‘(II) a merit system; 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00286
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
287 
‘‘(III) a system that measures 
rate of pay by quantity or quality of 
production; or 
‘‘(IV) a differential based on any 
lawful factor other than employment 
status; and 
‘‘(ii) the rate is not less than 80 per-
cent of the prevailing rate at which the 
employer for whom the labor is performed 
pays wages to direct employees for similar 
work on jobs the performance of which re-
quires similar skill, effort, and responsi-
bility, and which are performed under 
similar working conditions. 
‘‘(3) INCREASED
WAGES
FOR
COVERED
EM-
PLOYEES.— 
‘‘(A) IN GENERAL.—In the case of a cov-
ered employee who is not provided with the 
same benefits as the employer for whom the 
labor is being performed provides to its direct 
employees, the employer for whom the labor is 
being performed shall pay the covered employee, 
or require the employer providing the covered 
employee to pay the covered employee, a wage 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00287
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
288 
rate that, subject to subparagraph (B), is not 
less than the sum of— 
‘‘(i) the wage rate required under 
paragraph (2); and 
‘‘(ii) the lesser of— 
‘‘(I) an amount equal to 25 per-
cent of the wage rate required under 
paragraph (2); or 
‘‘(II) the amount the employee 
would have to pay to secure equivalent 
benefits without an employer’s assist-
ance. 
‘‘(B) MINIMUM.—In no case shall the min-
imum wage rate required under subparagraph 
(A) be less than 125 percent of the minimum 
wage rate required under subsection (a)(1).’’. 
(2) LIMITING EXEMPTIONS.—Section 13 of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 213) 
is amended— 
(A) in the matter preceding paragraph (1) 
of subsection (a), by inserting ‘‘and section 
6(c)’’ after ‘‘this subsection’’; 
(B) in subsection (d), by inserting ‘‘(except 
for subsection (c) of such section)’’ after ‘‘sec-
tions 6’’; and 
VerDate Sep 11 2014 
01:04 Oct 23, 2020
Jkt 019200
PO 00000
Frm 00288
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
289 
(C) in subsection (f), by inserting ‘‘(except 
for subsection (c) of such section)’’ after ‘‘sec-
tions 6’’. 
(c) NEW PROTECTIONS FOR EMPLOYEES OF STAFF-
ING COMPANIES AND OTHER COVERED EMPLOYEES.— 
(1) IN GENERAL.—Section 9 of the Fair Labor 
Standards Act of 1938, as added by section 
102(a)(6)(C)(i), is further amended by adding at the 
end the following: 
‘‘(b) PROTECTIONS FOR EMPLOYEES OF STAFFING 
COMPANIES AND OTHER COVERED EMPLOYEES.— 
‘‘(1) DEFINITION OF COVERED EMPLOYEE.—In 
this subsection, the term ‘covered employee’ has the 
meaning given the term in section 6(c)(1). 
‘‘(2) REGISTRATION
OF
PROVIDING
EMPLOY-
ERS.— 
‘‘(A) IN
GENERAL.—Each employer that 
provides covered employees to perform labor for 
another employer shall register with the Sec-
retary each year, in accordance with this sub-
section and regulations of the Secretary. Each 
such providing employer shall include with the 
registration— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00289
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
290 
‘‘(i) proof of an employer account 
number for the purposes of the payment of 
unemployment insurance contributions; 
‘‘(ii) proof of valid workers’ compensa-
tion insurance in effect at the time of reg-
istration and covering all covered employ-
ees performing labor for the employer; and 
‘‘(iii) a report containing the informa-
tion described in paragraph (7)(A)(ix), in 
the aggregate for all covered employees of 
the providing employer that performed 
labor for another employer in the pre-
ceding calendar year and disaggregated by 
branch office. 
‘‘(B) REGISTRATION FEE.—The Secretary 
shall assess each employer that registers under 
subparagraph (A) a nonrefundable registration 
fee equal to the sum of— 
‘‘(i) $1,000 per year; and 
‘‘(ii) an additional $250 for each 
branch office of the employer. 
‘‘(C) IMMEDIATE
REPORTING
OF
WORK-
ERS’ 
COMPENSATION
LAPSE.—In any case 
where the workers’ compensation insurance of 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00290
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
291 
an employer required to register under subpara-
graph (A) lapses— 
‘‘(i) the employer shall report the 
lapse to the Secretary; and 
‘‘(ii) the Secretary shall suspend the 
employer’s registration until the employer’s 
workers’ compensation insurance is rein-
stated. 
‘‘(D) AUTHORITY TO DENY, SUSPEND, OR 
REVOKE REGISTRATION.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall have the authority to deny, suspend, 
or revoke the registration of an employer 
under subparagraph (A) if warranted by 
violations of this subsection or of any other 
Federal, State, or local worker protection 
law. 
‘‘(ii) DUTY TO NOTIFY.—An employer 
whose registration under subparagraph (A) 
is denied, suspended, or revoked shall no-
tify, both by telephone and in writing, each 
of its covered employees and each of the 
employers for whom its covered employees 
perform labor within 24 hours of any de-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00291
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
292 
nial, suspension, or revocation of its reg-
istration. 
‘‘(E) INELIGIBILITY.—An employer re-
questing to register with the Secretary under 
subparagraph (A) is ineligible if, within the 5 
years immediately preceding the date of the em-
ployer’s registration request, the employer or 
any of its officers, directors, partners, or man-
agers, or any owner of 25 percent or greater 
beneficial interest, has been involved, as officer, 
director, partner, manager, or owner, in an-
other employer whose registration under such 
subparagraph was revoked or suspended with-
out being reinstated. 
‘‘(F) WEBSITE.—The Secretary shall cre-
ate and maintain a public website that in-
cludes— 
‘‘(i) a list of all employers whose reg-
istration under subparagraph (A) is in 
good standing; 
‘‘(ii) a list of all employers whose reg-
istration under subparagraph (A) has been 
suspended, including the reason for the 
suspension, the date the suspension was 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00292
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
293 
initiated, and, if known, the date the sus-
pension is to be lifted; and 
‘‘(iii) a list of all employers whose reg-
istration under subparagraph (A) has been 
revoked, including the reason for the rev-
ocation and the date the registration was 
revoked. 
‘‘(3) EMPLOYERS FOR WHOM EMPLOYEES PER-
FORM LABOR.— 
‘‘(A) IN
GENERAL.—No employer for 
whom a covered employee is provided by an-
other employer to perform labor may enter into 
a contract or any other agreement for such 
labor with any employer not registered under 
paragraph (2)(A). 
‘‘(B) VERIFICATION.— 
‘‘(i) REQUIREMENTS FOR RECEIVING 
EMPLOYERS.—An employer for whom a 
covered employee is provided by another 
employer to perform labor shall verify the 
providing employer’s status with the Sec-
retary of Labor before entering into a con-
tract or other agreement with the pro-
viding employer, and at annual intervals 
thereafter. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00293
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
294 
‘‘(ii) REQUIREMENTS FOR PROVIDING 
EMPLOYERS.—An employer that provides a 
covered employee to another employer to 
perform labor shall provide any employer 
for whom its covered employee performs 
labor with proof of valid registration under 
paragraph (2)(A) before entering into any 
contract or other agreement with the re-
ceiving employer. 
‘‘(C) LIST OF REGISTERED EMPLOYERS.— 
Upon request, the Secretary shall provide to 
any requesting party a list of employers reg-
istered under paragraph (2)(A) and an em-
ployer may rely in good faith on the informa-
tion on such list provided by the Secretary. 
‘‘(4) NO WORK RESTRICTIONS.—No employer 
that provides a covered employee to perform labor 
for another employer shall— 
‘‘(A) restrict the right of a covered em-
ployee to accept direct employment with an em-
ployer for whom the covered employee has per-
formed labor; 
‘‘(B) restrict the right of an employer for 
whom the covered employee has performed 
labor to offer such direct employment; or 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00294
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
295 
‘‘(C) charge any fee, either to the covered 
employee or an employer for whom the covered 
employee has performed labor, for the covered 
employee converting to direct employment with 
such employer. 
‘‘(5) PROHIBITION
ON
PERMATEMP
WORK-
ERS.— 
‘‘(A) CONVERSION OF TEMPORARY WORK-
ERS TO DIRECT EMPLOYEES.—After a covered 
employee performs labor for an employer for 
1,040 total hours during any 12-month period, 
such employer shall convert the covered em-
ployee to a direct employee of such employer. 
‘‘(B) PROHIBITIONS ON EVASION.— 
‘‘(i) NO MULTIPLE CONTRACTS.—An 
employer shall not terminate or end the 
agreement under which a covered employee 
is providing labor to the employer and then 
reengage such covered employee at a later 
date in order to evade the requirements of 
this subsection. 
‘‘(ii) 
NO
REPLACEMENT
EMPLOY-
EES.—An employer shall not terminate or 
end the agreement under which a covered 
employee is providing labor to the employer 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00295
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
296 
and then engage a different covered em-
ployee in order to evade the requirements 
of this subsection. 
‘‘(6) EMPLOYMENT NOTICES.— 
‘‘(A) IN
GENERAL.—Whenever an em-
ployer agrees to provide 1 or more covered em-
ployees to perform labor for another employer, 
the providing employer shall provide to each 
covered employee and to the other employer, at 
the time of dispatch, a statement containing the 
following information on a form approved by 
the Secretary: 
‘‘(i) The name of the covered em-
ployee. 
‘‘(ii) The name, address, and phone 
number of the providing employer that has 
agreed to the dispatch. 
‘‘(iii) The name, address, and phone 
number of the employer for whom the cov-
ered employee will perform labor. 
‘‘(iv) The name, address, and phone 
number of the providing employer’s work-
ers’ compensation insurance carrier. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00296
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
297 
‘‘(v) The address and phone number 
of the nearest regional office of the De-
partment of Labor. 
‘‘(vi) The name of the position, the 
nature of the work to be performed, and 
the types of equipment, clothing, and 
training that are required for the task. 
‘‘(vii) The wages offered, including 
the hourly rate of pay and the hourly rate 
of overtime pay, should overtime hours be 
performed. 
‘‘(viii) The designated pay day. 
‘‘(ix) The anticipated daily start times 
and daily end times. 
‘‘(x) The anticipated duration of the 
dispatch. 
‘‘(xi) The terms of transportation. 
‘‘(xii) Whether meals or equipment, or 
both, are provided and the cost of the meal 
and equipment to the covered employee, if 
any. 
‘‘(B) DURATION.—If a covered employee 
who is provided by an employer to perform 
labor for another employer is assigned to the 
same employer for more than 1 day, the pro-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00297
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
298 
viding employer is required to provide the em-
ployment information described in subpara-
graph (A) only on— 
‘‘(i) the first day of the assignment; 
and 
‘‘(ii) if any of the terms described in 
subparagraph (A) are changed, the first 
day of such change. 
‘‘(C) CONFIRMATION OF WORK SOUGHT.— 
If an employer that provides covered employees 
to other employers to perform labor does not 
place a covered employee with an employer for 
whom to perform labor for a particular day, the 
providing employer shall, upon request, provide 
the covered employee with a written and signed 
confirmation that the covered employee sought 
work, which shall include the name of the pro-
viding employer, the name and address of the 
covered employee, and the date and time that 
the covered employee received the confirmation. 
‘‘(D) NO
COVERED
EMPLOYEES
DURING 
LABOR DISPUTES.—No employer may provide a 
covered employee to perform labor at any work-
place where a strike, lockout, or other labor dis-
pute exists. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00298
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
301 
‘‘(B) TRANSMISSION REQUIREMENTS.— 
‘‘(i) IN GENERAL.—The employer for 
whom the covered employee is performing 
labor shall transmit all information re-
quired under subparagraph (A)(ii) to the 
employer who has provided such covered 
employee not later than 7 days following 
the last day of the work week worked for 
which the covered employee performed 
work for the employer. 
‘‘(ii) INTERACTION WITH OTHER RE-
QUIREMENTS.—The failure of an employer 
for whom a covered employee is performing 
labor to transmit the information required 
under this subparagraph shall not exempt 
the covered employee’s providing employer 
from any other recordkeeping requirements 
of this subsection. 
‘‘(8) MEALS.—If a covered employee is provided 
with a meal, the covered employee shall not be 
charged more than the actual cost of the meal. A 
covered employee shall not be charged for any meal 
not consumed by the covered employee. Purchase of 
a meal by a covered employee shall not be a condi-
tion of employment or performance of labor. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00301
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
302 
‘‘(9) TRANSPORTATION.— 
‘‘(A) IN
GENERAL.—A covered employee 
may not be charged any fee for transport to or 
from a designated worksite by either the em-
ployer who is providing the covered employee 
for the performance of labor or the employer 
for whom the covered employee is performing 
labor. 
‘‘(B) RESPONSIBILITY.—The employer who 
is providing a covered employee to perform 
labor for another employer is responsible for the 
conduct and performance of any person whom 
the employer secures to transport the covered 
employee to or from a designated worksite and 
for the safety of the vehicle used for such trans-
port, unless the transporter is a part of public 
mass transportation or a common carrier. 
‘‘(C) REFERRAL
LIMITATIONS.—The em-
ployer who is providing a covered employee to 
perform labor for another employer may not 
refer the covered employee to any person for 
transportation to or from a worksite unless that 
person is— 
‘‘(i) part of public mass transpor-
tation; or 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00302
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
303 
‘‘(ii) providing the transportation for 
no fee. 
‘‘(D) 
VEHICLE
REQUIREMENTS.—Any 
motor vehicle owned or operated by an employer 
who is providing a covered employee to another 
employer that is used for the covered employ-
ee’s transportation to or from a worksite must 
have a seat and safety belt for each passenger 
and must be operated by a driver with a valid 
license to operate such motor vehicle. 
‘‘(E) ROUND-TRIP TRANSPORTATION.—If a 
covered employee is provided with transpor-
tation to a worksite by either the covered em-
ployee’s providing employer or the employer for 
whom the covered employee is performing labor, 
then the covered employee shall be provided 
with transportation back to the point of origin 
unless the covered employee agrees prior to 
leaving for the worksite that the covered em-
ployee already has secured or will secure alter-
native transportation at the end of the covered 
employee’s shift. 
‘‘(F) 
REIMBURSEMENT
AND
MINIMUM 
COMPENSATION.—In any case where an em-
ployer providing a covered employee to perform 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00303
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
304 
labor for another employer dispatches a covered 
employee to a job that does not exist, the pro-
viding employer shall— 
‘‘(i) refund the covered employee’s 
reasonable transportation costs; and 
‘‘(ii) pay the covered employee com-
pensation equivalent to 2 hours of work. 
‘‘(10) EQUIPMENT.—For any safety equipment, 
specialized clothing, accessories, or any other items 
required by the nature of the work, either by law, 
custom, or the employer for whom a covered em-
ployee is performing labor, the covered employee— 
‘‘(A) shall not be charged for the items 
provided by the providing employer or the em-
ployer for whom the covered employee is per-
forming labor, unless the covered employee neg-
ligently damages or destroys such items; and 
‘‘(B) if the covered employee is required to 
purchase any such items, the employer for 
whom the covered employee is performing labor 
shall refund the cost of such items, including 
any related shipping or handling, to the covered 
employee. 
‘‘(11) OTHER CHARGES.—No covered employee 
shall be charged by the employer who is providing 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00304
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
305 
the covered employee to perform labor, or the em-
ployer for whom the covered employee is performing 
work, for any of the following: 
‘‘(A) Registering with the covered employ-
ee’s providing employer. 
‘‘(B) Obtaining work assignments. 
‘‘(C) Drug tests. 
‘‘(D) Background checks. 
‘‘(E) Debit cards used for payment of 
wages or any other method of wage payment.’’. 
(2) PENALTIES.— 
(A) PROHIBITED ACTS.—Section 15(a) of 
the Fair Labor Standards Act of 1938 (29 
U.S.C. 
215(a)), 
as 
amended 
by 
section 
102(a)(3)(B), is further amended by adding at 
the end the following: 
‘‘(8) to violate any of the provisions of section 
9(b).’’. 
(B) PENALTIES.—Section 16(e) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 
216(e)), as amended by section 102(a)(7)(B), is 
further amended by adding at the end the fol-
lowing: 
‘‘(9) FINES
AND
PENALTIES
REGARDING
TEM-
PORARY AND OTHER COVERED EMPLOYEES.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00305
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
306 
‘‘(A) IN GENERAL.—The Secretary may, after 
notice and an opportunity for a hearing, assess a 
civil penalty not to exceed $6,000 against any em-
ployer that violates any of the provisions of section 
9(b) (except for paragraph (2)(A) or (3) of such sec-
tion). Each violation of such section 9(b) for each 
day of the violation and for each covered employee 
shall constitute a separate and distinct violation of 
such section 9(b). 
‘‘(B) REGISTRATION
VIOLATIONS.—The Sec-
retary may, after notice and an opportunity for a 
hearing, assess a civil penalty against any employer 
that fails to register with the Secretary of Labor in 
accordance with section 9(b)(2)(A), including any 
rules issued under such section, of $500 per viola-
tion. Each day during which an employer operates 
without registering shall be a separate and distinct 
violation of such section. 
‘‘(C) CIVIL PENALTY.—Any employer for whom 
a covered employee performs labor that violates sec-
tion 9(b)(3) shall be subject to a civil penalty of 
$500. Each day during which such employer con-
tracts with a covered employee’s employer who is not 
registered with the Secretary of Labor under section 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00306
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
307 
9(b)(2)(A) shall constitute a separate and distinct 
offense. 
‘‘(D) REVOCATION.—The Secretary may revoke 
the registration of an employer under section 
9(b)(2)(A) in any case where an employer willfully, 
as determined by the Department, commits a viola-
tion of this section within 3 years of an earlier viola-
tion of such section.’’. 
SEC. 205. LICENSORS. 
(a) FAIR LABOR STANDARDS ACT OF 1938.— 
(1) IN
GENERAL.—Section 3(d) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203(d)), as 
amended by section 204(a)(1), is further amended 
by adding at the end the following: 
‘‘(9) LICENSORS.—An entity licensing its 
brand, name, or other likeness to an employer, or 
other entity responsible for the rights and protec-
tions of this Act with regard to the employees of 
such employer, for consideration shall also be re-
sponsible for the rights and protections of this Act 
with regard to the employees of such employer.’’. 
(2) INDEMNIFICATION.—Section 16 of the Fair 
Labor Standards Act of 1938, as amended by sec-
tion 203(a)(2), is further amended by adding at the 
end the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00307
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
308 
‘‘(j) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—An em-
ployer or other entity that is found to be in violation 
of this Act shall have the right to indemnification as 
described in paragraph (2) from an entity licensing 
its brand, name, or other likeness to the employer or 
other entity, in any case where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
309 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(b) NATIONAL LABOR RELATIONS ACT.— 
(1) IN GENERAL.—Section 2(2) of the National 
Labor Relations Act (29 U.S.C. 152(2)), as amend-
ed by section 204(a)(2), is further amended by add-
ing at the end the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00309
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
310 
‘‘(G) LICENSORS.—An entity licensing its 
brand, name, or other likeness to an employer, or 
other entity responsible for the rights and protec-
tions of this Act with regard to the employees of 
such employer, for consideration shall also be re-
sponsible for the rights and protections of this Act 
with regard to the employees of such employer.’’. 
(2) INDEMNIFICATION.—Section 12 of the Na-
tional Labor Relations Act (29 U.S.C. 162), as 
amended by section 203(b)(2), is further amended 
by adding at the end the following: 
‘‘(h) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—An em-
ployer or other entity that is found to be in violation 
of this Act shall have the right to indemnification as 
described in paragraph (2) from an entity licensing 
its brand, name, or other likeness to the employer or 
other entity, in any case where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
311 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00311
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
312 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(c) OCCUPATIONAL SAFETY AND HEALTH ACT OF 
1970.— 
(1) IN GENERAL.—Section 3(5) of the Occupa-
tional Safety and Health Act of 1970 (29 U.S.C. 
652(5)), as amended by section 204(a)(3), is further 
amended by adding at the end the following: 
‘‘(H) LICENSORS.—An entity licensing its 
brand, name, or other likeness to an employer, 
or other entity responsible for the rights and 
protections of this Act with regard to the em-
ployees of an employer, or other entity respon-
sible for the rights and protections of this Act 
with regard to the employees of such employer, 
for consideration shall also be responsible for 
the rights and protections of this Act with re-
gard to the employees of such employer.’’. 
(2) INDEMNIFICATION.—Section 17 of the Oc-
cupational Safety and Health Act of 1970 (29 
U.S.C. 666), as amended by section 203(c)(2), is 
further amended by adding at the end the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00312
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
313 
‘‘(p) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—An em-
ployer or other entity that is found to be in violation 
of this Act shall have the right to indemnification as 
described in paragraph (2) from an entity licensing 
its brand, name, or other likeness to the employer or 
other entity, in any case where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00313
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
314 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(d) FEDERAL MINE SAFETY AND HEALTH ACT OF 
1977.— 
(1) IN GENERAL.—Section 4B of the Federal 
Mine Safety and Health Act of 1977, as amended by 
section 204(a)(4), is further amended by adding at 
the end the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00314
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
315 
‘‘(e) LICENSORS.—An entity licensing its brand, 
name, or other likeness to an operator of a coal or other 
mine, or other entity responsible for the rights and protec-
tions of this Act with regard to the miners employed by 
such operator, for consideration shall also be responsible 
for the rights and protections of this Act with regard to 
the miners employed by such operator.’’. 
(2) INDEMNIFICATION.—Section 118 of the 
Federal Mine Safety and Health Act of 1977, as 
amended by section 203(d)(2), is further amended 
by adding at the end the following: 
‘‘(d) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—An op-
erator or other entity that is found to be in violation 
of this Act shall have the right to indemnification as 
described in paragraph (2) from an entity licensing 
its brand, name, or other likeness to the operator or 
other entity, in any case where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00315
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
316 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00316
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
317 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(e) MIGRANT AND SEASONAL AGRICULTURAL WORK-
ER PROTECTION ACT.— 
(1) IN GENERAL.—Section 5(c) of the Migrant 
and Seasonal Agricultural Worker Protection Act, as 
amended by section 204(a)(5), is further amended 
by adding at the end the following: 
‘‘(6) LICENSORS.—An entity licensing its 
brand, name, or other likeness to a farm labor con-
tractor, agricultural employer, or agricultural asso-
ciation, or other entity responsible for the rights and 
protections of this Act with regard to the migrant 
agricultural workers or seasonal agricultural workers 
of the farm labor contractor, agricultural employer, 
or agricultural association, for consideration shall 
also be responsible for the rights and protections of 
this Act with regard to such migrant agricultural 
workers and seasonal agricultural workers.’’. 
(2) INDEMNIFICATION.—Section 505 of the Mi-
grant and Seasonal Agricultural Worker Protection 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
318 
Act, as amended by section 203(e)(2), is further 
amended by adding at the end the following: 
‘‘(d) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—A farm 
labor contractor, agricultural employer, agricultural 
association, or other entity that is found to be in vio-
lation of this Act shall have the right to indemnifica-
tion as described in paragraph (2) from an entity li-
censing its brand, name, or other likeness to the 
farm labor contractor, agricultural employer, agricul-
tural association, or other entity, in any case where 
the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
319 
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(f) DAVIS-BACON ACT.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
320 
(1) IN GENERAL.—Section 3144b of title 40, 
United States Code, as amended by section 
204(a)(6), is further amended by adding at the end 
the following: 
‘‘(e) LICENSORS.—An entity licensing its brand, 
name, or other likeness to a contractor or subcontractor, 
or other entity responsible for the rights and protections 
of this subchapter with regard to the laborers or mechan-
ics of such contractor or subcontractor, for consideration 
shall also be responsible for the rights and protections of 
this subchapter with regard to such laborers or mechan-
ics.’’. 
(2) INDEMNIFICATION.—Section 3144c of title 
40, United States Code, as amended by section 
203(f)(2), is further amended by adding at the end 
the following: 
‘‘(g) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—A con-
tractor, subcontractor, or other entity that is found 
to be in violation of this subchapter shall have the 
right to indemnification as described in paragraph 
(2) from an entity licensing its brand, name, or 
other likeness to the employer or other entity, in any 
case where the violation was— 
‘‘(A) at the behest of the licensor; 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
321 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this sub-
chapter. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
322 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(g) MCNAMARA-O’HARA SERVICE CONTRACT ACT.— 
(1) IN GENERAL.—Section 6701a of title 41, 
United States Code, as amended by section 
204(a)(7), is further amended by adding at the end 
the following: 
‘‘(e) LICENSORS.—An entity licensing its brand, 
name, or other likeness to a contractor, or other entity 
responsible for the rights and protections of this chapter 
with regard to the service employees of such contractor, 
for consideration shall also be responsible for the rights 
and protections of this chapter with regard to such service 
employees.’’. 
(2) INDEMNIFICATION.—Section 6707 of title 
41, United States Code, as amended by section 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
323 
203(g)(2), is further amended by adding at the end 
the following: 
‘‘(d) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—A con-
tractor, subcontractor, or other entity that is found 
to be in violation of this chapter shall have the right 
to indemnification as described in paragraph (2) 
from an entity licensing its brand, name, or other 
likeness to the employer or other entity, in any case 
where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00323
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
324 
censee as a result of the violation of this chap-
ter. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(h) WALSH-HEALEY PUBLIC CONTRACTS ACT.— 
(1) IN GENERAL.—Section 6501b of title 41, 
United States Code, as amended by section 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00324
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
325 
204(a)(8), is further amended by adding at the end 
the following: 
‘‘(e) LICENSORS.—An entity licensing its brand, 
name, or other likeness to a contractor, or other entity 
responsible for the rights and protections of this chapter 
with regard to individuals employed in the manufacture 
or furnishing of materials, supplies, articles, or equipment 
under a contract to which this chapter applies by such 
contractor, for consideration shall also be responsible for 
the rights and protections of this chapter with regard to 
such individuals.’’. 
(2) INDEMNIFICATION.—Section 6506b of title 
41, United States Code, as amended by section 
203(h)(2), is further amended by adding at the end 
the following: 
‘‘(g) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—A con-
tractor, subcontractor, or other entity that is found 
to be in violation of this chapter shall have the right 
to indemnification as described in paragraph (2) 
from an entity licensing its brand, name, or other 
likeness to the employer or other entity, in any case 
where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00325
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
326 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this chap-
ter. 
‘‘(3) PROHIBITION ON WAIVER.— 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00326
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
327 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(i) FAMILY AND MEDICAL LEAVE ACT OF 1993.— 
(1) IN GENERAL.—Section 101(4) of the Fam-
ily and Medical Leave Act of 1993 (29 U.S.C. 
2611), as amended by section 204(a)(9), is further 
amended by adding at the end the following: 
‘‘(H) LICENSORS.—An entity licensing its 
brand, name, or other likeness to an employer 
for consideration shall also be responsible for 
the rights and protections of this Act with re-
gard to the employees of such employer.’’. 
(2) INDEMNIFICATION.—Section 107 of the 
Family and Medical Leave Act of 1993 (29 U.S.C. 
2617), as amended by section 203(i)(2), by inserting 
after subsection (g) the following: 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00327
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
328 
‘‘(h) LICENSEES AND LICENSORS.— 
‘‘(1) INDEMNIFICATION BY LICENSOR.—An em-
ployer or other entity that is found to be in violation 
of this Act shall have the right to indemnification as 
described in paragraph (2) from an entity licensing 
its brand, name, or other likeness to the employer or 
other entity, in any case where the violation was— 
‘‘(A) at the behest of the licensor; 
‘‘(B) at the direction of the licensor; 
‘‘(C) pursuant to any policies, agreements, 
or contractual obligations emanating from the 
licensor; or 
‘‘(D) due to other direct or indirect control 
or pressure from the licensor. 
‘‘(2) PROCESS FOR AND TYPE OF INDEMNIFICA-
TION.—Indemnification under paragraph (1)— 
‘‘(A) may be sought by a licensee in any 
court of competent jurisdiction; and 
‘‘(B) shall include a full recovery from the 
licensor of all compensatory and punitive dam-
ages, civil monetary penalties, attorney’s fees, 
or other amounts required to be paid by the li-
censee as a result of the violation of this Act. 
‘‘(3) PROHIBITION ON WAIVER.— 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00328
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
329 
‘‘(A) IN GENERAL.—A licensor shall not 
require or otherwise request a licensee to waive 
the licensee’s right to indemnification under 
this subsection. 
‘‘(B) PENALTY.—If a licensor violates sub-
paragraph (A)— 
‘‘(i) any indemnification waiver shall 
be null and void; and 
‘‘(ii) the licensor shall be subject to a 
civil penalty of $100,000. 
‘‘(4) PROHIBITION ON RETALIATION.— 
‘‘(A) IN GENERAL.—A licensor shall not 
end the license agreement with, take adverse 
action in relation to, or otherwise discriminate 
against, a licensee for pursuing indemnification 
under this subsection. 
‘‘(B) PENALTY.—A licensor who violates 
subparagraph (A) shall be subject to a civil 
penalty of $100,000.’’. 
(j) FEDERAL UNEMPLOYMENT TAX ACT (FUTA).— 
(1) IN GENERAL.—Section 3306(w) of the In-
ternal Revenue Code of 1986, as amended by section 
204(a)(10), is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(8) Paragraph (9) of section 3(d) of such Act. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00329
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
330 
‘‘(9) Subsection (j) of section 16 of such Act.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to services rendered on 
or after January 1, 2022. 
SEC. 206. LABOR CONTRACTORS. 
(a) FAIR LABOR STANDARDS ACT OF 1938.—Section 
3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
203(d)), as amended by section 205(a)(1), is further 
amended by adding at the end the following: 
‘‘(10) LABOR
CONTRACTORS.—An employer 
shall also be responsible for the rights and protec-
tions of this Act with regard to an employee of a 
labor contractor, or any labor subcontractors under 
a labor contractor, in any case where such labor con-
tractor or labor subcontractor is responsible for the 
rights and protections of this Act with respect to the 
employee.’’. 
(b) NATIONAL LABOR RELATIONS ACT.— 
(1) IN GENERAL.—Section 2(2) of the National 
Labor Relations Act (29 U.S.C. 152(2)), as amend-
ed by section 205(b), is further amended by adding 
at the end the following: 
‘‘(H) LABOR
CONTRACTORS.—An employer 
shall also be responsible for the rights and protec-
tions of this Act with regard to an employee of a 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00330
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
331 
labor contractor, or any labor subcontractors under 
a labor contractor, in any case where such labor con-
tractor or labor subcontractor is responsible for the 
rights and protections of this Act with respect to the 
employee.’’. 
(2) UNFAIR LABOR PRACTICE.—Section 8(a) of 
the National Labor Relations Act (29 U.S.C. 
158(a)), as amended by section 102(b)(3)(B), is fur-
ther amended by adding at the end the following: 
‘‘(8) to reject contractors in whole or in part 
because the contractors have workforces represented 
by labor organizations, including— 
‘‘(A) when the employer initially solicits 
bids for a contract for an as-yet-unchosen con-
tractor to provide a good or service to the em-
ployer, by rejecting any contractor in whole or 
in part because the contractor’s workforce is 
represented by a labor organization; or 
‘‘(B) when an employer has an existing 
contract with a contractor and the contractor’s 
employees are considering to organize or have 
chosen to organize in accordance with the rights 
provided under section 7, by— 
‘‘(i) ending the employer’s existing 
contract with the contractor; 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00331
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
332 
‘‘(ii) not renewing the employer’s ex-
isting contract with the contractor if the 
contract is set to expire; or 
‘‘(iii) threatening to end or not renew 
the employer’s existing contract with the 
contractor, 
in whole or in part because of the labor organi-
zation consideration or representation described 
in the matter preceding clause (i).’’. 
(c) OCCUPATIONAL SAFETY AND HEALTH ACT OF 
1970.—Section 3(5) of the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 652(5)), as amended by 
section 205(c)(1), is further amended by adding at the end 
the following: 
‘‘(I) LABOR CONTRACTORS.—An employer 
shall also be responsible for the rights and pro-
tections of this Act with regard to an employee 
of a labor contractor, or any labor subcontrac-
tors under a labor contractor, in any case where 
such labor contractor or labor subcontractor is 
responsible for the rights and protections of 
this Act with respect to the employee.’’. 
(d) FEDERAL MINE SAFETY AND HEALTH ACT OF 
1977.—Section 4B of the Federal Mine Safety and Health 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00332
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
333 
Act of 1977, as amended by section 205(d), is further 
amended by adding at the end the following: 
‘‘(f) LABOR CONTRACTORS.—An employer shall also 
be responsible for the rights and protections of this Act 
with regard to a miner of a coal or other mine employed 
by a labor contractor, or any labor subcontractors under 
a labor contractor, in any case where such labor contractor 
or labor subcontractor is responsible for the rights and 
protections of this Act with respect to the miner.’’. 
(e) MIGRANT AND SEASONAL AGRICULTURAL WORK-
ER PROTECTION ACT.—Section 4(c) of the Migrant and 
Seasonal Agricultural Worker Protection Act, as amended 
by section 205(e)(1), is further amended by adding at the 
end the following: 
‘‘(7) LABOR CONTRACTORS.—A farm labor con-
tractor, agricultural employer, or agricultural asso-
ciation shall also be responsible for the rights and 
protections of this Act with regard to a migrant ag-
ricultural worker or seasonal agricultural worker of 
a labor contractor, or any labor subcontractors 
under a labor contractor, in any case where such 
labor contractor or labor subcontractor is responsible 
for the rights and protections of this Act with re-
spect to the migrant agricultural worker or seasonal 
agricultural worker.’’. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00333
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
334 
(f) DAVIS-BACON ACT.—Section 3144b of title 40, 
United States Code, as amended by section 205(f)(1), is 
further amended by adding at the end the following: 
‘‘(f) CONTRACTORS’ LIABILITY
FOR LABOR SUB-
CONTRACTORS.—An employer who is a contractor subject 
to the requirements of this subchapter shall also be re-
sponsible for the rights and protections of this subchapter 
with regard to an employee of any labor subcontractor of 
the contractor, or any labor subcontractors under a labor 
subcontractor, in any case where— 
‘‘(1) the employee is performing work under a 
contract to which this subchapter applies; and 
‘‘(2) such labor subcontractor, or labor subcon-
tractor of a labor subcontractor, is responsible for 
the rights and protections of this subchapter with 
respect to a laborer or mechanic.’’. 
(g) MCNAMARA-O’HARA SERVICE CONTRACT ACT.— 
Section 6701a of title 41, United States Code, as amended 
by section 205(g), is further amended by adding at the 
end the following: 
‘‘(f) CONTRACTORS’ LIABILITY
FOR LABOR SUB-
CONTRACTORS.—An employer who is a contractor subject 
to the requirements of this chapter shall also be respon-
sible for the rights and protections of this chapter with 
regard to an employee of any labor subcontractor of the 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00334
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
335 
contractor, or any labor subcontractors under a labor sub-
contractor, in any case where— 
‘‘(1) the employee is performing work under a 
contract to which this chapter applies; and 
‘‘(2) such labor subcontractor, or labor subcon-
tractor of a labor subcontractor, is responsible for 
the rights and protections of this chapter with re-
spect to a service employee.’’. 
(h) WALSH-HEALEY PUBLIC CONTRACTS ACT.—Sec-
tion 6501b of title 41, United States Code, as amended 
by section 205(h), is further amended by adding at the 
end the following: 
‘‘(f) CONTRACTORS’ LIABILITY
FOR LABOR SUB-
CONTRACTORS.—An employer who is a contractor subject 
to the requirements of this chapter shall also be respon-
sible for the rights and protections of this chapter with 
regard to an employee of any labor subcontractor of the 
contractor, or any labor subcontractors under a labor sub-
contractor, in any case where— 
‘‘(1) the employee is employed in the manufac-
ture or furnishing of materials, supplies, articles, or 
equipment under a contract to which this chapter 
applies; and 
‘‘(2) such labor subcontractor, or labor subcon-
tractor of a labor subcontractor, is responsible for 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00335
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
336 
the rights and protections of this chapter with re-
spect to the employee.’’. 
(i) FAMILY AND MEDICAL LEAVE ACT OF 1993.— 
Section 101(4) of the Family and Medical Leave Act of 
1993 (29 U.S.C. 2611), as amended by section 205(i), is 
further amended by adding at the end the following: 
‘‘(I) LABOR CONTRACTORS.—An employer 
shall also be responsible for the rights and pro-
tections of this Act with regard to an employee 
of a labor contractor, or any labor subcontrac-
tors under a labor contractor, in any case where 
such labor contractor or labor subcontractor is 
responsible for the rights and protections of 
this Act with respect to the employee.’’. 
(j) FEDERAL UNEMPLOYMENT TAX ACT (FUTA).— 
(1) IN GENERAL.—Section 3306(w) of the In-
ternal Revenue Code of 1986, as amended by section 
205(j), is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(10) Paragraph (10) of section 3(d) of such 
Act.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to services rendered on 
or after January 1, 2022. 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00336
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
337 
SEC. 207. SUPPLY CHAIN RESPONSIBILITY PLAN. 
(a) FAIR LABOR STANDARDS ACT OF 1938.— 
(1) SUPPLY
CHAIN
RESPONSIBILITY
PLAN.— 
Section 11 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 211) is amended by adding at the end 
the following: 
‘‘(e) SUPPLY CHAIN RESPONSIBILITY PLAN.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED
EMPLOYER.—The term 
‘covered employer’ means an employer that em-
ploys 100 or more employees. 
‘‘(B) COVERED LAWS.—The term ‘covered 
laws’ means all of the following: 
‘‘(i) This Act. 
‘‘(ii) The National Labor Relations 
Act. 
‘‘(iii) The Occupational Safety and 
Health Act of 1970. 
‘‘(iv) The Federal Mine Safety and 
Health Act of 1977. 
‘‘(v) The Migrant and Seasonal Agri-
cultural Worker Protection Act. 
‘‘(vi) Subchapter IV of chapter 31 of 
title 40, United States Code (commonly 
known as the ‘Davis-Bacon Act’). 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00337
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
338 
‘‘(vii) Chapter 67 of title 41, United 
States Code (commonly known as the 
‘McNamara-O’Hara 
Service 
Contract 
Act’). 
‘‘(viii) Chapter 65 of title 41, United 
States Code (commonly known as the 
‘Walsh-Healey Public Contracts Act of 
1936’). 
‘‘(ix) The Family and Medical Leave 
Act of 1993. 
‘‘(x) Violations of State law required 
under section 3304 of the Internal Rev-
enue Code of 1986. 
‘‘(xi) The applicable labor laws of any 
country in which an employer that is part 
of a covered employer’s supply chain oper-
ates, with respect to employees employed 
in such country. 
‘‘(2) DEVELOPMENT OF PLAN.—Each covered 
employer shall develop and carry out a supply chain 
responsibility plan described in paragraph (3) that 
describes how the employer will attempt to ensure 
that the employer’s primary supply chain does not 
include any employer that regularly violates— 
‘‘(A) an individual covered law; or 
VerDate Sep 11 2014 
01:04 Oct 23, 2020
Jkt 019200
PO 00000
Frm 00338
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
339 
‘‘(B) the covered laws, when considered as 
a whole. 
‘‘(3) CONTENTS.—Each supply chain responsi-
bility plan shall include, at a minimum— 
‘‘(A) an assessment of— 
‘‘(i) the violations under each covered 
law by each employer with more than 19 
employees in the covered employer’s supply 
chain; and 
‘‘(ii) the violations under each covered 
law by each employer that provides a large 
volume or dollar amount of the covered 
employer’s supply chain; 
‘‘(B) a plan for— 
‘‘(i) removing from the covered em-
ployer’s supply chain each employer de-
scribed in subparagraph (A) that regularly 
violates— 
‘‘(I) an individual covered law; or 
‘‘(II) the covered laws, when con-
sidered as a whole; or 
‘‘(ii) if clause (i) is not possible with 
respect to a particular employer described 
in subparagraph (A) due to an extremely 
limited number of employers that could 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00339
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS
340 
fulfill specific portions of the covered em-
ployer’s supply chain, utilizing the leverage 
that the covered employer has as a pur-
chaser to pressure the particular employer 
to improve compliance with the covered 
laws; 
‘‘(C) a list of the organizations that the 
covered employer has identified to assist the 
covered employer in this process, including 
workers’ rights advocates; and 
‘‘(D) any other information the Secretary 
determines necessary. 
‘‘(4) SUBMISSION.—Each covered employer 
shall annually submit the supply chain responsibility 
plan to the Secretary and shall post the most recent 
plan publicly on the covered employer’s website.’’. 
(2) PENALTIES.—Section 16(e) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 216(e)), as 
amended by section 204(c)(2)(B), is further amend-
ed by adding at the end the following: 
‘‘(10) PENALTIES FOR VIOLATIONS REGARDING 
SUPPLY CHAIN RESPONSIBILITY PLANS.—Any per-
son who violates section 11(e)(3) by not submitting 
or posting a complete supply chain responsibility 
VerDate Sep 11 2014 
21:44 Oct 20, 2020
Jkt 019200
PO 00000
Frm 00340
Fmt 6652
Sfmt 6201
E:\BILLS\H8375.IH
H8375
pamtmann on DSKBC07HB2PROD with BILLS