(B) the total amount paid by the issuer or 
another party as a result of— 
(i) the settlements described in sub-
paragraph (A)(i); and 
(ii) the judgments described in sub-
paragraph (A)(ii); and 
(2) information regarding whether, in the ag-
gregate, including the period covered by the submis-
sion, there have been three or more settlements 
reached by, or judgments against, the issuer with re-
spect to workplace harassment, including sexual har-
assment, or retaliation for reporting, resisting, op-
posing, or assisting in the investigation of workplace 
harassment that relate to a particular individual em-
ployed by the issuer, without identifying that indi-
vidual by name. 
SEC. 
106. 
PROFESSIONAL 
TRAINING, 
INCLUDING 
BY-
STANDER 
TRAINING, 
AND 
PUBLIC 
EDU-
CATION CAMPAIGNS. 
(a) COMMISSION
AUTHORITY.—The Commission 
shall have the authority to— 
(1) reasonably adjust the fees the Commission 
charges for any education, technical assistance, or 
training the Commission offers in accordance with 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
section 705(j)(1) of the Civil Rights Act of 1964 (42 
U.S.C. 2000e–4(j)(1)); 
(2) use the materials developed by the Commis-
sion for any education, technical assistance, or train-
ing offered by the Commission in accordance with 
section 705(j)(1) of the Civil Rights Act of 1964 in 
any education and outreach activities carried out by 
the Commission; and 
(3) use funds from the EEOC Education, Tech-
nical Assistance, and Training Revolving Fund, es-
tablished under section 705(k) of the Civil Rights 
Act of 1964, to pay the full salaries of any Commis-
sion employees that develop and administer any edu-
cation, technical assistance, or training programs of-
fered by the Commission. 
(b) WORKPLACE TRAINING.— 
(1) IN GENERAL.—The Commission shall pro-
vide for the development and dissemination of work-
place training programs and information regarding 
workplace harassment, including sexual harassment. 
(2) CONTENTS
OF
TRAINING.—The training 
provided by the Commission under this subsection to 
managers and nonmanagers shall be consistent with 
the findings of the Commission, on matters includ-
ing— 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
(A) what constitutes workplace harass-
ment, including sexual harassment; 
(B) the rights of individuals with respect 
to workplace harassment and how to report 
workplace harassment; 
(C) how individuals, including bystanders, 
who encounter workplace harassment can inter-
vene or report the harassment; and 
(D) how employers and managers can pre-
vent workplace harassment, including sexual 
harassment, from occurring in the workplace. 
(3) CONTENTS OF INFORMATION.—In providing 
information under this subsection, the Commission 
shall— 
(A) prepare and distribute information 
that is consistent with the findings of the Com-
mission; 
(B) develop and disseminate a public serv-
ice advertisement campaign that— 
(i) distributes information with re-
spect to the matters described in para-
graph (2); and 
(ii) advertises the confidential com-
plaint database established under section 
5. 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
(c) EFFECTIVE DATE.—This section shall not take 
effect in any fiscal year for which less than $1,500,000 
is appropriated to carry out this section. 
TITLE II—MODIFICATION OF TAX 
TREATMENT 
OF 
AMOUNTS 
RELATED TO EMPLOYMENT 
DISCRIMINATION AND WORK-
PLACE HARASSMENT 
SEC. 201. TAX TREATMENT OF AMOUNTS RELATED TO 
JUDGMENTS. 
(a) DENIAL OF DEDUCTION.— 
(1) IN GENERAL.—Part IX of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 280I. AMOUNTS RELATED TO JUDGMENTS WITH RE-
SPECT TO WORKPLACE HARASSMENT, IN-
CLUDING SEXUAL HARASSMENT. 
‘‘No deduction shall be allowed under this chapter for 
amounts paid or incurred by the taxpayer— 
‘‘(1) pursuant to any judgment or award in liti-
gation related to workplace harassment, including 
sexual harassment, or 
‘‘(2) for expenses and attorney’s fees in connec-
tion with the litigation resulting in the judgment or 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
award described in paragraph (1) (other than ex-
penses or attorney’s fees paid by the workplace har-
assment plaintiff or claimant), or for any insurance 
covering the defense or liability of the underlying 
claims with respect to such litigation.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part IX of subchapter B of chapter 1 of 
such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 280I. Amounts related to judgments with respect to workplace harass-
ment, including sexual harassment.’’. 
(3) CONFORMING
AMENDMENT.—Section 162 
of such Code is amended by striking subsection (q). 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred in taxable years beginning after the date of 
the enactment of this Act. 
(b) EXCLUSION FROM INCOME.— 
(1) IN GENERAL.—Part III of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after section 139G the fol-
lowing new section: 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
‘‘SEC. 139H. AMOUNTS RECEIVED IN CONNECTION WITH 
JUDGMENTS, AWARDS, AND SETTLEMENTS 
WITH RESPECT TO WORKPLACE HARASS-
MENT. 
‘‘Gross income shall not include any amount received 
in connection with a judgment or award in, or a settlement 
of— 
‘‘(1) a claim related to workplace harassment, 
including sexual harassment or other unlawful dis-
crimination, or 
‘‘(2) any other claim of unlawful discrimination 
(as defined by section 62(e)). 
The preceding sentence shall not include any employment 
discrimination compensation to which section 1302 ap-
plies.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part III of subchapter B of chapter 1 of 
such Code is amended by inserting after the item re-
lating to section 139G the following new item: 
‘‘Sec. 139H. Amounts received in connection with judgments, awards, and set-
tlements with respect to workplace harassment.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts received in 
taxable years beginning after the date of the enact-
ment of this Act. 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
SEC. 202. LIMITATION ON TAX BASED ON INCOME AVER-
AGING FOR COMPENSATION RECEIVED ON 
ACCOUNT OF CERTAIN UNLAWFUL EMPLOY-
MENT DISCRIMINATION. 
(a) IN GENERAL.—Part I of subchapter Q of chapter 
1 of the Internal Revenue Code of 1986 (relating to in-
come averaging) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 1302. INCOME FROM COMPENSATION RECEIVED ON 
ACCOUNT OF CERTAIN UNLAWFUL EMPLOY-
MENT DISCRIMINATION. 
‘‘(a) GENERAL RULE.—In the case of any employ-
ment discrimination compensation received during any 
taxable year, the tax imposed by this chapter for such tax-
able year with respect to such compensation shall not ex-
ceed the sum of— 
‘‘(1) the tax which would be so imposed if— 
‘‘(A) no amount of such compensation 
were included in gross income for such year, 
and 
‘‘(B) no deduction were allowed for such 
year for expenses otherwise allowable as a de-
duction to the taxpayer for such year in connec-
tion with making or prosecuting any claim of 
unlawful employment discrimination by or on 
behalf of the taxpayer, plus 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
‘‘(2) the product of— 
‘‘(A) the combined number of years in the 
backpay period and the foregone compensation 
period, and 
‘‘(B) the amount by which the tax deter-
mined under paragraph (1) would increase if 
the sum of— 
‘‘(i) the average of the average annual 
net employment discrimination compensa-
tion in the backpay period, and 
‘‘(ii) the average of the average an-
nual net employment discrimination com-
pensation in the foregone compensation pe-
riod, 
were included in gross income for such year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
EMPLOYMENT
DISCRIMINATION
COM-
PENSATION.—The term ‘employment discrimination 
compensation’ means any backpay or foregone com-
pensation receivable (whether as lump sums or peri-
odic payments) on account of a judgment or settle-
ment resulting from a claim of unlawful discrimina-
tion (as defined in section 62(e)) in violation of law 
which relates to employment. 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
‘‘(2) BACKPAY.—The term ‘backpay’ means 
amounts which are includible in gross income for the 
taxable year as compensation which is attributable 
to services performed (or which would have been 
performed but for the violation of law described in 
paragraph (1)) as an employee, former employee, or 
prospective employee in years before such taxable 
year for the taxpayer’s employer, former employer, 
or prospective employer. 
‘‘(3) FOREGONE
COMPENSATION.—The term 
‘foregone compensation’ means amounts which are 
includible in gross income for the taxable year as 
compensation which is attributable to services which 
would have been performed in years after such tax-
able year but for the violation of law described in 
paragraph (1). 
‘‘(4) BACKPAY PERIOD.—The term ‘backpay pe-
riod’ means the period during which services de-
scribed in paragraph (2) were performed or would 
have been performed but for the violation of law de-
scribed in paragraph (1). If such period is not equal 
to a whole number of taxable years, such period 
shall be increased to the next highest number of 
whole taxable years. 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
‘‘(5) FOREGONE COMPENSATION PERIOD.—The 
term ‘foregone compensation period’ means the pe-
riod during which services described in paragraph 
(3) would have been performed but for the violation 
of law described in paragraph (1). If such period is 
not equal to a whole number of taxable years, such 
period shall be increased to the next highest number 
of whole taxable years. 
‘‘(6) AVERAGE ANNUAL NET EMPLOYMENT DIS-
CRIMINATION
COMPENSATION.—The term ‘average 
annual net employment discrimination compensation’ 
with respect to any period means the amount equal 
to— 
‘‘(A) the excess of— 
‘‘(i) employment discrimination com-
pensation attributable to such period, over 
‘‘(ii) the amount of the deductions de-
scribed in subsection (a)(1)(B), divided by 
‘‘(B) the total number of years in the 
backpay period and the foregone compensation 
period.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter Q of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after sec-
tion 1301 the following new item: 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS
‘‘Sec. 1302. Income from compensation received on account of certain unlawful 
employment discrimination.’’. 
(c) INCOME AVERAGING NOT TO INCREASE ALTER-
NATIVE MINIMUM TAX LIABILITY.—Section 55(c) of the 
Internal Revenue Code of 1986 is amended by redesig-
nating paragraph (3) as paragraph (4) and by inserting 
after paragraph (2) the following new paragraph: 
‘‘(3) COORDINATION WITH INCOME AVERAGING 
FOR AMOUNTS RECEIVED ON ACCOUNT OF EMPLOY-
MENT DISCRIMINATION.—Solely for purposes of this 
section, section 1302 shall not apply in computing 
the regular tax liability.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
Æ 
VerDate Sep 11 2014 
05:21 Jul 20, 2018
Jkt 079200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6301
E:\BILLS\H6406.IH
H6406
SSpencer on DSKBBXCHB2PROD with BILLS