I 
114TH CONGRESS 
1ST SESSION 
H. R. 620 
To amend the Internal Revenue Code of 1986 to expand the denial of 
deduction for certain excessive employee remuneration. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2015 
Mr. VAN HOLLEN (for himself, Mr. CLYBURN, Ms. DELAURO, Ms. SLAUGH-
TER, Mr. MCDERMOTT, Ms. NORTON, Mr. BRADY of Pennsylvania, Mr. 
BEYER, Mr. WELCH, Mr. POCAN, Mr. LOWENTHAL, Mr. CICILLINE, Ms. 
CASTOR of Florida, Mr. HONDA, Mr. HASTINGS, Mrs. WATSON COLE-
MAN, and Mr. GRAYSON) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
the denial of deduction for certain excessive employee 
remuneration. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘CEO–Employee Pay-
check Fairness Act of 2015’’. 
VerDate Sep 11 2014 
21:46 Feb 06, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H620.IH
H620
ebenthall on DSK5SPTVN1PROD with BILLS
SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER-
TAIN 
EXCESSIVE 
EMPLOYEE 
REMUNERA-
TION. 
(a) EXPANDED APPLICATION OF DEDUCTION DE-
NIAL IF PAY FAIRNESS REQUIREMENT NOT MET.—Sec-
tion 162(m) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(7) SPECIAL
RULE
IN
CASE
OF
COMPANIES 
NOT MEETING PAY FAIRNESS REQUIREMENT.— 
‘‘(A) IN GENERAL.—In the case of a pub-
licly held corporation which does not meet the 
pay fairness requirement of subparagraph (B) 
for the taxable year— 
‘‘(i) no deduction shall be allowed 
under this chapter for applicable employee 
remuneration with respect to any employee 
to the extent that the amount of such re-
muneration for the taxable year with re-
spect 
to 
such 
employee 
exceeds 
$1,000,000, and 
‘‘(ii) paragraph (4) shall be applied 
without regard to subparagraphs (B), (C), 
and (D) thereof. 
For purposes of the preceding sentence, the 
term ‘employee’ includes any officer or director 
VerDate Sep 11 2014 
21:46 Feb 06, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H620.IH
H620
ebenthall on DSK5SPTVN1PROD with BILLS
of the taxpayer and any former officer, director, 
or employee of the taxpayer. 
‘‘(B) PAY FAIRNESS REQUIREMENT.—The 
pay fairness requirement of this subparagraph 
is satisfied if— 
‘‘(i)(I) the average compensation paid 
by the taxpayer to or for all applicable 
United States employees for the taxable 
year, exceeds 
‘‘(II) the inflation and productivity 
growth adjusted average of such compensa-
tion for the preceding taxable year, and 
‘‘(ii) the aggregate compensation paid 
by the employer to or for all applicable 
United States employees for the taxable 
year is not less than the aggregate of such 
compensation for the preceding taxable 
year. 
‘‘(C) APPLICABLE
UNITED
STATES
EM-
PLOYEE.—For purposes of this paragraph, the 
term 
‘applicable 
United 
States 
employee’ 
means, with respect to any taxable year, any 
employee— 
VerDate Sep 11 2014 
21:46 Feb 06, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H620.IH
H620
ebenthall on DSK5SPTVN1PROD with BILLS