I
104TH CONGRESS
2D SESSION
H. R. 3857
To ensure economic equity for American women and their families by promot-
ing fairness in the workplace, creating new economic opportunities for
women workers and women business owners, helping workers better meet
the competing demands of work and family, and enhancing economic
self-sufficiency through public and private pension reform and improved
child support and enforcement.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 1996
Mrs. MORELLA (for herself, Mrs. LOWEY, Ms. ROYBAL-ALLARD, Ms. WATERS,
Ms. BROWN of Florida, Ms. FURSE, Ms. VELAZ´QUEZ, Mrs. MEEK of
Florida, Mrs. COLLINS of Illinois, Mrs. MALONEY, Mrs. SCHROEDER, Ms.
LOFGREN, Ms. WOOLSEY, Mrs. EDDIE BERNICE JOHNSON of Texas,
Mrs. KENNELLY, Ms. PELOSI, Mrs. CLAYTON, and Ms. JACKSON-LEE of
Texas) introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committees on Agriculture,
Banking and Financial Services, Commerce, Economic and Educational
Opportunities, Government Reform and Oversight, House Oversight,
International Relations, the Judiciary, National Security, Resources, and
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To ensure economic equity for American women and their
families by promoting fairness in the workplace, creating
new economic opportunities for women workers and
women business owners, helping workers better meet the
competing demands of work and family, and enhancing
economic self-sufficiency through public and private pen-
sion reform and improved child support and enforcement.
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 ‘‘Economic Equity Act
of 1996’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—WORKPLACE FAIRNESS
Subtitle A—Part-Time and Temporary Workers Protection
CHAPTER 1—PROTECTION OF PART-TIME AND TEMPORARY WORKERS
Sec. 11101. Eligibility for unemployment compensation of certain individuals
seeking part-time employment.
Sec. 11102. Annual Bureau of Labor Statistics survey relating to temporary
workers.
Sec. 11103. Protection of part-time and temporary workers.
CHAPTER 2—MISCLASSIFICATION OF EMPLOYEES AS INDEPENDENT
CONTRACTORS
Sec. 11201. Internal Revenue Service procedures.
Sec. 11202. Federal contracts.
Sec. 11203. Defense contracts.
Subtitle B—Federal Employee Fairness
Sec. 12001. Amendments relating to administrative determination of Federal
employee discrimination claims.
Sec. 12002. Amendments to the Age Discrimination in Employment Act and
the Rehabilitation Act of 1973.
Sec. 12003. Amendments to title 5 of the United States Code.
Sec. 12004. Technical amendments.
Sec. 12005. Issuance of procedural guidelines and notice rules.
Sec. 12006. Issuance of rules regarding classified information.
Sec. 12007. Rules of construction.
Sec. 12008. Sense of the Congress.
Sec. 12009. Effective dates; application of amendments.
Subtitle C—Legislative Pay Equity Study
Sec. 13001. Declaration of policy.
Sec. 13002. Establishment of commission.
Sec. 13003. Functions of commission.
Sec. 13004. Staff of commission.
Sec. 13005. Compensation of members.
Sec. 13006. Powers of commission.
Sec. 13007. Reports and termination of commission.
Sec. 13008. Administrative provisions.
Subtitle D—Sexual Harassment Prevention
Sec. 14001. Civil action.
Sec. 14002. Additional funding for the Equal Employment Opportunity Com-
mission.
Subtitle E—Sexual Harassment Information
Sec. 15001. Findings and purposes.
Sec. 15002. Employer requirements.
Sec. 15003. Duties of the commission.
Sec. 15004. Enforcement.
Sec. 15005. Definitions.
Sec. 15006. Effective dates.
Subtitle F—Sexual Harassment Tax Equity
Sec. 16001. Deduction for legal expenses of individuals bringing sexual harass-
ment suits against their employers.
Subtitle G—Equal Remedies
Sec. 17001. Equalization of remedies.
Subtitle H—Federal Temporary Workers Protection
Sec. 18001. Eligibility for health benefits.
Sec. 18002. Effective date.
Subtitle I—Contingent Work Force Equity
Sec. 19001. Equal pay.
Sec. 19002. Occupational safety and health.
Sec. 19003. Family and medical leave.
Sec. 19004. Contingent workforce survey.
Sec. 19005. Collective bargaining rights.
Sec. 19006. Protection of part-time and temporary workers.
Sec. 19007. Unemployment compensation.
TITLE II—ECONOMIC OPPORTUNITY
Subtitle A—Microenterprise Opportunity Expansion
Sec. 21001. Public assistance provisions.
Sec. 21002. Unemployment compensation for individuals starting microenter-
prises.
Sec. 21003. Treatment of microenterprise loans and grants by insured deposi-
tory institutions as community reinvestment.
Sec. 21004. Treatment of microenterprise loans of savings associations as
qualified thrift investments.
Sec. 21005. Use of CDBG assistance for administrative costs of entities assist-
ing microenterprises.
Sec. 21006. Establishment of microenterprise division in each Federal banking
agency.
Sec. 21007. Study.
Subtitle B—Commission on the Advancement of Women in the Science and
Engineering Work Forces
Sec. 22001. Findings.
Sec. 22002. Establishment.
Sec. 22003. Duty of commission.
Sec. 22004. Membership.
Sec. 22005. Director and staff of commission; experts and consultants.
Sec. 22006. Powers of commission.
Sec. 22007. Reports.
Sec. 22008. Construction; use of information obtained.
Sec. 22009. Termination.
Sec. 22010. Authorization of appropriations.
Subtitle C—Equal Surety Bond Opportunity
Sec. 23001. Equal surety bond opportunity requirements.
Sec. 23002. Civil liability.
Sec. 23003. Administrative enforcement.
Sec. 23004. Effective date.
Subtitle D—Self-Sufficiency Standard
Sec. 24001. Findings and purpose.
Sec. 24002. Definition of economic self-sufficiency.
Sec. 24003. Establishment of economic self-sufficiency standards for adult
training programs.
Sec. 24004. Prohibition of incentive grants to service delivery areas that do not
have in effect an approved local economic self-sufficiency stand-
ards table.
Sec. 24005. Inclusion of local economic self-sufficiency standards table and re-
lated reports in job training plan.
Sec. 24006. Inclusion of local economic self-sufficiency standards tables and re-
lated reports in Governor’s coordination and special services
plan.
Sec. 24007. Demonstration programs to implement local economic self-suffi-
ciency standards tables.
Sec. 24008. Report and recommendations.
Subtitle E—Community Reinvestment
Sec. 25001. Reporting of actual performance data.
Subtitle F—Telecommunications Economic Opportunity
Sec. 26001. Findings.
Sec. 26002. Purpose.
Sec. 26003. Annual plan submission.
Sec. 26004. Sanctions and remedies.
Sec. 26005. Definitions.
Subtitle G—HHS Women Scientist Employment Opportunity
Sec. 27001. Women’s scientific employment.
Subtitle H—Women in Enterprise Development
Sec. 28001. Women in enterprise development.
TITLE III—WORK AND FAMILY
Subtitle A—Child Care Consolidation and Investment
Sec. 31001. Findings.
Sec. 31002. Purpose.
Sec. 31003. Amendments to Child Care and Development Block Grant Act of
1990.
Sec. 31004. Program repeals.
Sec. 31005. Effective date.
Subtitle B—Child Care Public-Private Partnership
Sec. 32001. Establishment of business incentive grant program.
Sec. 32002. Eligibility to receive grants.
Sec. 32003. Application.
Sec. 32004. Selection of grantees.
Sec. 32005. Definitions.
Sec. 32006. Authorization of appropriations.
Subtitle C—Dependent Care Tax Credit Refundability
Sec. 33001. Dependent care tax credit.
Subtitle D—IRA Deductions for Homemakers
Sec. 34001. Homemakers eligible for full IRA deduction.
Subtitle E—Federal Parental Leave for Education Activities
Sec. 35001. Coverage of employees.
Sec. 35002. Parental involvement leave.
Sec. 35003. Parental involvement leave for civil servants.
Subtitle F—Tax Incentives for Family-Friendly Workplaces
Sec. 36001. Small business family and medical leave credit.
Sec. 36002. Credit for wages paid to employee who is allowed to shift hours
of employment or to work at home in order to reduce child care
needs.
Subtitle G—Parental Equity Leave
Sec. 37001. Leave for adopted and foster children.
TITLE IV—ECONOMIC SELF-SUFFICIENCY
Subtitle A—Child Support Responsibility
Sec. 41001. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV–D
PROGRAM CLIENTS
Sec. 41101. State obligation to provide paternity establishment and child sup-
port enforcement services.
Sec. 41102. Distribution of payments.
Sec. 41103. Due process rights.
Sec. 41104. Privacy safeguards.
CHAPTER 2—PROGRAM ADMINISTRATION AND FUNDING
Sec. 41201. Federal matching payments.
Sec. 41202. Performance-based incentives and penalties.
Sec. 41203. Federal and State reviews and audits.
Sec. 41204. Required reporting procedures.
Sec. 41205. Automated data processing requirements.
Sec. 41206. Director of CSE program; staffing study.
Sec. 41207. Funding for secretarial assistance to State programs.
Sec. 41208. Reports and data collection by the Secretary.
CHAPTER 3—LOCATE AND CASE TRACKING
Sec. 41301. Central State and case registry.
Sec. 41302. Centralized collection and disbursement of support payments.
Sec. 41303. Amendments concerning income withholding.
Sec. 41304. Locator information from interstate networks.
Sec. 41305. Expanded Federal Parent Locator Service.
Sec. 41306. Use of social security numbers.
CHAPTER 4—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 41401. Adoption of uniform State laws.
Sec. 41402. Improvements to full faith and credit for child support orders.
Sec. 41403. State laws providing expedited procedures.
CHAPTER 5—PATERNITY ESTABLISHMENT
Sec. 41501. State laws concerning paternity establishment.
Sec. 41502. Outreach for voluntary paternity establishment.
CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 41601. National Child Support Guidelines Commission.
Sec. 41602. Simplified process for review and adjustment of child support or-
ders.
CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS
Sec. 41701. Federal income tax refund offset.
Sec. 41702. Internal Revenue Service collection of arrears.
Sec. 41703. Authority to collect support from Federal employees.
Sec. 41704. Enforcement of child support obligations of members of the armed
forces.
Sec. 41705. Motor vehicle liens.
Sec. 41706. Voiding of fraudulent transfers.
Sec. 41707. State law authorizing suspension of licenses.
Sec. 41708. Reporting arrearages to credit bureaus.
Sec. 41709. Extended statute of limitation for collection of arrearages.
Sec. 41710. Charges for arrearages.
Sec. 41711. Denial of passports for nonpayment of child support.
Sec. 41712. International child support enforcement.
CHAPTER 8—MEDICAL SUPPORT
Sec. 41801. Technical correction to ERISA definition of medical child support
order.
CHAPTER 9—EFFECT OF ENACTMENT
Sec. 41901. Effective dates.
Sec. 41902. Severability.
Subtitle B—Interstate Child Support
Sec. 42001. Reference.
Sec. 42002. Findings, declarations, and purposes.
CHAPTER 1—LOCATE AND CASE TRACKING
Sec. 42101. Expansion of functions of Federal Parent Locator Service.
Sec. 42102. Expansion of data bases accessed by parent locator systems.
Sec. 42103. Expansion of access to national network for location of parents.
Sec. 42104. Private access to locate and enforcement services.
Sec. 42105. National reporting of new hires and child support information.
Sec. 42106. Access to law enforcement records systems.
Sec. 42107. Broadcasting of warrants on State networks.
Sec. 42108. Case monitoring.
Sec. 42109. Access to financial records.
CHAPTER 2—ESTABLISHMENT
Sec. 42201. Service of process on Federal employees and members of the
Armed Services in connection with proceedings relating to child
support and parentage obligations.
Sec. 42202. Presumed address of obligor and obligee.
Sec. 42203. Notice to custodial parents.
Sec. 42204. Uniform State rules in parentage and child support cases.
Sec. 42205. Fair Credit Reporting Act amendment.
Sec. 42206. National Child Support Guidelines Commission.
Sec. 42207. Guideline principles.
Sec. 42208. Duration of support.
Sec. 42209. Evidence.
Sec. 42210. Telephonic appearance in interstate cases.
Sec. 42211. Uniform terms in orders.
Sec. 42212. Social security numbers on marriage licenses, divorce decrees, par-
entage decrees, and birth certificates.
Sec. 42213. Administrative subpoena power.
Sec. 42214. Legal assistance programs.
Sec. 42215. Indian child support.
Sec. 42216. Support orders outreach and demonstrations.
CHAPTER 3—PARENTAGE
Sec. 42301. Parentage.
CHAPTER 4—ENFORCEMENT
Sec. 42401. Direct wage withholding.
Sec. 42402. Priorities in application of withheld wages.
Sec. 42403. Additional benefits subject to garnishment.
Sec. 42404. Consumer Credit Protection Act amendments.
Sec. 42405. Prohibition against use of election of remedies doctrine to prevent
collection of child support.
Sec. 42406. Hold on occupational, professional, and business licenses.
Sec. 42407. Driver’s licenses and vehicle registrations denied to persons failing
to appear in child support cases.
Sec. 42408. Liens on certificates of vehicle title.
Sec. 42409. Attachment of bank accounts.
Sec. 42410. Seizure of lottery winnings, settlements, payouts, awards, and be-
quests, and sale of forfeited property, to pay child support ar-
rearages.
Sec. 42411. Fraudulent transfer pursuit.
Sec. 42412. Full IRS collection.
Sec. 42413. Tax refund offset program expanded to cover non-AFDC post-
minor children.
Sec. 42414. Attachment of public and private retirement funds.
Sec. 42415. Statutes of limitation.
Sec. 42416. Interest.
Sec. 42417. Armed forces cooperation in enforcement of support obligations of
members and former members of the armed forces.
Sec. 42418. States required to enact the Uniform Interstate Family Support
Act.
Sec. 42419. IRS reconciliation process.
Sec. 42420. Denial of passports to noncustodial parents subject to State arrest
warrants in cases of nonpayment of child support.
Sec. 42421. Denial of Federal benefits, loans, guarantees, and employment to
certain persons with large child support arrearages.
Sec. 42422. States required to order courts to allow assignment of life insur-
ance benefits to satisfy child support arrearages.
Sec. 42423. Interests in jointly held property subject to assignment to satisfy
child support arrearages.
Sec. 42424. International child support enforcement.
CHAPTER 5—COLLECTION AND DISTRIBUTION
Sec. 42501. Priorities in distribution of collected child support.
Sec. 42502. State claims against noncustodial parent limited to assistance pro-
vided to the child.
Sec. 42503. Fees for non-AFDC clients.
Sec. 42504. Collection and disbursement points for child support.
Sec. 42505. Sense of the Congress that States should encourage parents to use
the State child support agency to collect and process child sup-
port payments.
CHAPTER 6—FEDERAL ROLE
Sec. 42601. Placement and role of the office of child support enforcement.
Sec. 42602. Training.
Sec. 42603. Staffing.
Sec. 42604. Demonstration projects to test alternative approaches to incentive
funding for State child support programs.
Sec. 42605. Child support definition.
Sec. 42606. Audits.
Sec. 42607. Child support assurance demonstration projects.
Sec. 42608. Children’s Trust Fund.
Sec. 42609. Study of reasons for nonpayment of child support; report.
Sec. 42610. Study of effectiveness of administrative processes; report.
Sec. 42611. Publication of best child support practices.
Sec. 42612. Establishment of Permanent Child Support Advisory Committee.
CHAPTER 7—STATE ROLE
Sec. 42701. Advocation of children’s economic security.
Sec. 42702. Duties of State child support agencies.
Sec. 42703. Sense of the Congress regarding quality of and accessibility to
child support services.
Sec. 42704. Administrative process for change of payee in IV–D cases.
Sec. 42705. Sense of the Congress supporting use of administrative procedures
in child support cases.
Sec. 42706. Sense of the Congress supporting establishment of State child sup-
port councils.
CHAPTER 8—JOBS FOR UNEMPLOYED NONCUSTODIAL PARENTS
Sec. 42801. Parents fair share demonstration projects.
CHAPTER 9—EFFECTIVE DATE
Sec. 42901. Effective date.
Subtitle C—Child Support Enforcement Improvements
Sec. 43001. Nonliability for depository institutions providing financial records
to State child support enforcement agencies in child support
cases.
Sec. 43002. Access to and use of consumer reports by State child support en-
forcement agencies in child support cases.
Sec. 43003. Health care support.
Sec. 43004. Annual reports on State compliance with time limits within which
State must provide certain child support assistance.
Sec. 43005. Wages withheld by employers to pay child support obligations re-
quired to be paid to State within 10 days; late payment penalty
imposed on employers.
Sec. 43006. National parent locator network.
Subtitle D—Single Parent Protection
Sec. 44001. Treatment of unpaid child support.
Subtitle E—Women’s Pension Equity
Sec. 45001. Model spousal consent form and qualified domestic relations order.
Sec. 45002. Extension of tier II railroad retirement benefits to surviving former
spouses pursuant to divorce agreements.
Sec. 45003. Survivor annuities for widows, widowers, and former spouses of
Federal employees who die before attaining age for deferred
annuity under Civil Service Retirement System.
Sec. 45004. Court orders relating to Federal retirement benefits for former
spouses of Federal employees.
Sec. 45005. Prevention of circumvention of court order by waiver of retired pay
to enhance civil service retirement annuity.
Subtitle F—Pension Reform
Sec. 46001. Pension integration rules.
Sec. 46002. Application of minimum coverage requirements with respect to sep-
arate lines of business.
Sec. 46003. Elimination of special vesting rule for multiemployer plans.
Sec. 46004. Division of pension benefits upon divorce.
Sec. 46005. Effective dates.
Sec. 46006. Clarification of continued availability of remedies relating to mat-
ters treated in domestic relations orders entered before 1985.
Sec. 46007. Entitlement of divorced spouses to railroad retirement annuities
independent of actual entitlement of employee.
Subtitle G—Social Security Caregiver
Sec. 47001. Increase in number of years disregarded.
Sec. 47002. Effective date and related provisions.
Sec. 47003. Repeal of 7-year restriction on eligibility for widow’s and widower’s
insurance benefits based on disability.
Sec. 47004. Increase in widow’s and widower’s insurance benefits by reason of
delayed retirement.
Sec. 47005. Effective date.
Sec. 47006. Exemption from two-year waiting period for divorced spouse’s ben-
efits following the divorce in cases of prior receipt of spouse’s
benefits.
Sec. 47007. Effective date.
Sec. 47008. Full benefits for disabled widows and widowers without regard to
age.
Sec. 47009. Exemption from reductions in benefits.
Sec. 47010. Effective date and redetermination of benefits.
TITLE V—ECONOMIC IMPACT OF DOMESTIC VIOLENCE
Subtitle A—Workplace Violence Prevention Tax Credit
Sec. 51001. Congressional findings.
Sec. 51002. Credit for costs to employers of implementing workplace safety
programs to combat violence against women.
Subtitle B—Insurance Protection for Victims of Domestic Violence
Sec. 52001. Prohibition of health insurance discrimination with respect to vic-
tims of domestic violence.
Subtitle C—Fairness to Minority Women Health
Sec. 53001. Exception to AFDC income and resources attribution rule for cer-
tain battered aliens.
Sec. 53002. Amendment to the Food Stamp Act of 1977.
Sec. 53003. Requiring certain recipients of Federal financial assistance to have
personnel available who speak predominant language used in
area.
Sec. 53004. Study regarding domestic violence and Latina women.
Subtitle D—Battered Women’s Employment Protection
Sec. 54001. Findings and purposes.
Sec. 54002. Unemployment compensation.
Sec. 54003. Leave from employment.
Sec. 54004. Effect on other laws and employment benefits.
Subtitle E—Domestic Violence Legal Services Eligibility
Sec. 55001. Income rule for victims of domestic violence.
TITLE I—WORKPLACE FAIRNESS
Subtitle A—Part-Time and
Temporary Workers Protection
CHAPTER 1—PROTECTION OF PART-TIME
AND TEMPORARY WORKERS
SEC. 11101. ELIGIBILITY FOR UNEMPLOYMENT COMPENSA-
TION OF CERTAIN INDIVIDUALS SEEKING
PART-TIME EMPLOYMENT.
(a) GENERAL RULE.—Subsection (a) of section 3304
of the Internal Revenue Code of 1986 (relating to require-
ments for approval of State unemployment compensation
laws) is amended by striking ‘‘and’’ at the end of para-
graph (18), by redesignating paragraph (19) as paragraph
(20), and by inserting after paragraph (18) the following
new paragraph:
‘‘(19) in applying the State law provisions relat-
ing to availability for work, active search for work,
or refusal to accept work, the term ‘suitable work’
shall not include any work where the individual
would normally perform services for more hours per
week than the number of hours per week for which
the individual normally performed services in the in-
dividual’s last job in the base period, and’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this subtitle.
SEC. 11102. ANNUAL BUREAU OF LABOR STATISTICS SUR-
VEY RELATING TO TEMPORARY WORKERS.
The Secretary of Labor, acting through the Commis-
sioner of the Bureau of Labor Statistics, shall establish
and carry out an annual survey identifying—
(1) the characteristics of temporary workers in
the United States;
(2) the relationship between such workers and
the establishments at which such workers are tempo-
rarily employed; and
(3) where appropriate, the relationship between
such workers and their permanent employers.
SEC. 11103. PROTECTION OF PART-TIME AND TEMPORARY
WORKERS.
(a) TREATMENT OF EMPLOYEES WORKING AT LESS
THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND
ACCRUAL RULES GOVERNING PENSION PLANS.—
(1) PARTICIPATION RULES.—
(A) IN
GENERAL.—Section 202(a)(3) of
the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1052(a)(3)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the 12-month
period referred to in subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such 12-month
period shall be treated as completion of 1,000 hours of
service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) CONFORMING
AMENDMENT.—Section
204(b)(1)(E) 
of 
such 
Act 
(29 
U.S.C.
1054(b)(1)(E)) is amended by striking ‘‘section
202(a)(3)(A)’’ and inserting ‘‘subparagraphs
(A) and (E) of section 202(a)(3)’’.
(2) VESTING RULES.—
(A) IN
GENERAL.—Section 203(b)(2) of
such Act (29 U.S.C. 1053(b)(2)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such period shall
be treated as completion of 1,000 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) 1-YEAR BREAKS IN SERVICE.—Section
203(b)(3) of such Act (29 U.S.C. 1053(b)(3))
is amended by adding at the end the following
new subparagraph:
‘‘(F)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 250 hours of service within such period shall
be treated as completion of 500 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(3) ACCRUAL RULES.—Section 204(b)(4)(C) of
such Act (29 U.S.C. 1054(b)(4)(C)) is amended—
(A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
(B) by adding at the end the following new
clauses:
‘‘(ii) For purposes of this subparagraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to clause (i)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such period shall
be treated as completion of 1,000 hours of service.
‘‘(iii) For purposes of clause (ii), the extent to which
employment in any type of position customarily constitutes
less than 1,000 hours of service per year shall be deter-
mined with respect to each pension plan in accordance
with such regulations as the Secretary may prescribe pro-
viding for consideration of facts and circumstances pecu-
liar to the work-force constituting the participants in such
plan.’’.
(b) TREATMENT OF EMPLOYEES WORKING AT LESS
THAN FULL-TIME UNDER GROUP HEALTH PLANS.—
(1) IN GENERAL.—Part 2 of subtitle B of title
I of such Act is amended—
(A) by redesignating section 211 (29
U.S.C. 1061) as section 212; and
(B) by inserting after section 210 (29
U.S.C. 1060) the following new section:
‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP
HEALTH PLANS
‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em-
ployer-provided premium under a group health plan with
respect to any employee for any period of coverage solely
because the employee’s customary employment is less than
full-time may be provided under such plan only if the em-
ployee is described in subsection (b) and only to the extent
permitted under subsection (c).
‘‘(b) REDUCTIONS
APPLICABLE
TO
EMPLOYEES
WORKING LESS THAN FULL-TIME.—
‘‘(1) IN GENERAL.—An employee is described in
this subsection if such employee, as of the beginning
of the period of coverage referred to in subsection
(a)—
‘‘(A) has customarily completed less than
30 hours of service per week, or
‘‘(B) is employed in a type of position in
which employment customarily constitutes less
than 30 hours of service per week.
‘‘(2) REGULATIONS.—For purposes of para-
graph (1), whether employment in any type of posi-
tion customarily constitutes less than 30 hours of
service per week shall be determined with respect to
each group health plan in accordance with such reg-
ulations as the Secretary may prescribe providing
for consideration of facts and circumstances peculiar
to the work force constituting the participants in
such plan.
‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The
employer-provided premium under a group health plan
with respect to any employee for any period of coverage,
after the reduction permitted under subsection (a), shall
not be less than a ratable portion of the employer-provided
premium which would be provided under such plan for
such period of coverage with respect to an employee who
completes 30 hours of service per week.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) GROUP HEALTH PLAN.—The term ‘group
health plan’ has the meaning provided such term in
section 607(1).
‘‘(2) EMPLOYER-PROVIDED PREMIUM.—
‘‘(A) IN GENERAL.—The term ‘employer-
provided premium’ under a plan for any period
of coverage means the portion of the applicable
premium under the plan for such period of cov-
erage which is attributable under the plan to
employer contributions.
‘‘(B) APPLICABLE
PREMIUM.—For pur-
poses of subparagraph (A), in determining the
applicable premium of a group health plan,
principles similar to the principles applicable
under section 604 shall apply.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 201(1) of such Act (29 U.S.C.
1051(1)) is amended by inserting ‘‘, except with
respect to section 211’’ before the semicolon.
(B) The table of contents in section 1 of
such Act is amended by striking the item relat-
ing to section 211 and inserting the following
new items:
‘‘Sec. 211. Treatment of part-time workers under group health plans.
‘‘Sec. 212. Effective date.’’.
(c) EXPANSION OF DEFINITION OF EMPLOYEE TO
INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE
LEASED OR CONTRACTED FOR.—Paragraph (6) of section
3 of such Act (29 U.S.C. 1002(6)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) Such term includes, with respect to any em-
ployer, any person who is not an employee (within the
meaning of subparagraph (A)) of such employer and who
provides services to such employer, if—
‘‘(i) such person has (pursuant to an agreement
with such employer or any other person) performed
such services for such employer (or for such em-
ployer and related persons (within the meaning of
section 144(a)(3) of the Internal Revenue Code of
1986)) for a period of at least 1 year (6 months in
the case of core health benefits) at the rate of at
least 500 hours of service per year, and
‘‘(ii) such services are of a type historically per-
formed, in the business field of the employer, by em-
ployees (within the meaning of subparagraph (A)).’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply with respect to plan years beginning on
or after January 1, 1997.
(2) SPECIAL
RULE
FOR
COLLECTIVELY
BAR-
GAINED PLANS.—In the case of a plan maintained
pursuant to 1 or more collective bargaining agree-
ments between employee representatives and 1 or
more employers ratified on or before the date of the
enactment of this subtitle, paragraph (1) shall be
applied to benefits pursuant to, and individuals cov-
ered by, any such agreement by substituting for
‘‘January 1, 1997’’ the date of the commencement
of the first plan year beginning on or after the ear-
lier of—
(A) the later of—
(i) January 1, 1997, or
(ii) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof after the date of the en-
actment of this subtitle), or
(B) January 1, 1999.
(3) PLAN
AMENDMENTS.—If any amendment
made by this section requires an amendment to any
plan, such plan amendment shall not be required to
be made before the first plan year beginning on or
after January 1, 1998, if—
(A) during the period after such amend-
ment made by this section takes effect and be-
fore such first plan year, the plan is operated
in accordance with the requirements of such
amendment made by this section, and
(B) such plan amendment applies retro-
actively to the period after such amendment
made by this section takes effect and such first
plan year.
A plan shall not be treated as failing to provide defi-
nitely determinable benefits or contributions, or to
be operated in accordance with the provisions of the
plan, merely because it operates in accordance with
this paragraph.
CHAPTER 2—MISCLASSIFICATION OF EM-
PLOYEES AS INDEPENDENT CONTRAC-
TORS
SEC. 11201. INTERNAL REVENUE SERVICE PROCEDURES.
(a) WAIVER OF EMPLOYMENT TAX LIABILITY FOR
REASONABLE GOOD FAITH MISCLASSIFICATION BASED
ON COMMON LAW RULES.—Section 3509 of the Internal
Revenue Code of 1986 (relating to determination of em-
ployer’s liability for certain employment taxes) is amended
by adding at the end the following new subsection:
‘‘(e) WAIVER OF EMPLOYMENT TAX LIABILITY FOR
REASONABLE GOOD FAITH MISCLASSIFICATION BASED
ON COMMON LAW RULES.—
‘‘(1) IN GENERAL.—For purposes of determin-
ing the liability of any taxpayer for employment
taxes with respect to any individual for any period,
such individual shall be deemed not to have been an
employee of the taxpayer for such period if—
‘‘(A) the taxpayer did not treat such indi-
vidual as an employee for purposes of the em-
ployment taxes for such period,
‘‘(B) the taxpayer’s treatment of such indi-
vidual as not being an employee was based on
a reasonable good faith misapplication of the
common law rules used for determining the em-
ployer-employee relationship,
‘‘(C) all Federal tax returns (including in-
formation returns) required to be filed by the
taxpayer with respect to such individual for
such period were filed on a basis consistent with
the taxpayer’s treatment of such individual as
not being an employee,
‘‘(D) the taxpayer (and any predecessor)
did not treat any other individual holding a
substantially similar position as an employee for
purposes of the employment taxes for any pe-
riod beginning after December 31, 1977, and
‘‘(E) the taxpayer enters into a closing
agreement under section 7121 with the Sec-
retary (in the time and manner determined by
the Secretary) agreeing to treat such individual,
and any other individual holding a substantially
similar position, as employees and to file all
Federal employment tax returns with respect to
such individuals on a basis consistent with the
taxpayer’s treatment of such individuals as em-
ployees.
‘‘(2) DEFINITIONS AND SPECIAL RULES.—
‘‘(A) EMPLOYMENT TAX.—For purposes of
this subsection, the term ‘employment tax’
means any tax imposed by subtitle C, including
any interest, penalty, or additional amount with
respect to such tax.
‘‘(B) NO REFUND OR CREDIT OF OVERPAY-
MENT.—No refund or credit of any overpay-
ment of an employment tax resulting from the
application of paragraph (1) shall be allowed,
notwithstanding that the period for filing a
claim for refund or credit of such overpayment
is not barred on the effective date of this sub-
section.’’
(b) MODIFICATIONS TO SAFE HARBOR FOR CLASSI-
FICATIONS OF INDIVIDUALS AS NONEMPLOYEES.—
(1) REQUIREMENT
OF
REASONABLE
BASIS.—
Paragraph (1) of section 530(a) of the Revenue Act
of 1978 (relating to controversies involving whether
individuals are employees for purposes of the em-
ployment taxes) is amended by striking ‘‘unless the
taxpayer had no reasonable basis’’ and inserting the
following: ‘‘if the taxpayer had a reasonable basis’’.
(2) REPEAL OF PRIOR AUDIT AS REASONABLE
BASIS, ETC.—Paragraph (2) of section 530(a) of the
Revenue Act of 1978 is amended—
(A) by striking the paragraph caption and
inserting the following: ‘‘REASONABLE
BASIS
FOR
NOT
TREATING
INDIVIDUAL
AS
EM-
PLOYEE.—’’,
(B) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘in any case’’, and
(ii) by inserting ‘‘only’’ before ‘‘if the
taxpayer’s’’,
(C) by adding ‘‘or’’ at the end of subpara-
graph (A), and
(D) by striking subparagraph (B) and by
redesignating subparagraph (C) as subpara-
graph (B).
(c) AUTHORITY FOR REGULATIONS AND RULINGS ON
EMPLOYMENT STATUS.—Section 530 of the Revenue Act
of 1978 is amended by striking subsection (b) and by re-
designating subsections (c) and (d) as subsections (b) and
(c), respectively.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall take effect beginning on the date
which is 120 days after the date of the enactment
of this subtitle.
(2) MODIFICATIONS
TO
SAFE
HARBOR.—The
amendments made by subsection (b) shall apply to
periods ending on or after the date which is 120
days after the date of the enactment of this subtitle.
SEC. 11202. FEDERAL CONTRACTS.
(a) CLASSIFICATION OF PERSONS AS EMPLOYEES
AND
INDEPENDENT
CONTRACTORS
UNDER
CERTAIN
PROCUREMENT CONTRACTS.—(1) Title III of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 251 et seq.) is amended by adding at the end the
following new section:
‘‘SEC. 317. CLASSIFICATION OF PERSONS AS EMPLOYEES
AND INDEPENDENT CONTRACTORS.
‘‘(a) INELIGIBILITY FOR GOVERNMENT CONTRACTS
AND SUBCONTRACTS.—(1) A person (including any sub-
sidiary, successor, or related entity of a person) shall not
be eligible for a contract during the 2-year period begin-
ning on the date of the issuance of any final determination
under Federal law that the person (including any subsidi-
ary or related entity of the person) willfully misclassified
an individual for purposes of any employment tax.
‘‘(2) For purposes of this subsection, a determination
is final if all rights to appeal the determination, or to re-
quest a review, rehearing, or redetermination of the mat-
ter that is the subject of the determination, have been ex-
hausted or have lapsed.
‘‘(b) CERTIFICATION OF ADEQUACY OF BIDS TO PAY
EMPLOYMENT TAXES.—A person who submits a bid or
proposal for a contract shall certify that the amount of
the bid or proposal is adequate to pay all employment
taxes with respect to all work to be performed under the
contract by employees of the person.
‘‘(c) NOTIFICATION
OF INDEPENDENT CONTRAC-
TORS.—Each contract shall include a requirement that the
contractor provide, to each person who performs work
under the contract and who is treated by the contractor
as an independent contractor for purposes of employment
taxes, a notification regarding—
‘‘(1) all obligations of the independent contrac-
tor under Federal and State law to withhold and pay
employment taxes with respect to work performed
under the contract by the independent contractor
(including work performed by employees of the inde-
pendent contractor); and
‘‘(2) all statutory rights and protections that
are available under Federal and State law to em-
ployees of the contractor and are not available to the
independent contractor (including employees of the
independent contractor), including rights and protec-
tions under the Fair Labor Standards Act of 1938,
the Occupational Safety and Health Act of 1978,
and title VII of the Civil Rights Act of 1964.
‘‘(d) RIGHT OF ACTION.—A person who submits a
bid or proposal for a contract and who suffers damages
as a result of the award of the contract to a person who
knowingly and willfully submits a certification under sub-
section (b) with respect to the contract that is false, may
bring an action for damages against the person awarded
the contract in any district court of the United States in
which the defendant is located.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘employment tax’ means any tax
imposed by subtitle C of the Internal Revenue Code
of 1986.
‘‘(2) The term ‘contract’ means a contract that
is entered into by an executive agency under this
title, and all subcontracts under such a contract.
‘‘(3) The term ‘misclassify’ means to treat as
an independent contractor an individual who is an
employee.’’.
(2) The table of contents in section 1 of the Federal
Property and Administrative Services Act of 1949 is
amended by inserting after the item relating to the last
section in title III the following new item:
‘‘Sec. 317. Classification of persons as employees and independent contractors.’’.
(b) APPLICABILITY.—Section 317 of the Federal
Property and Administrative Services Act of 1949, as
added by subsection (a), shall apply to—
(1) contracts entered into under title III of
such Act after the expiration of the 180-day period
beginning on the date of the enactment of this sub-
title;
(2) subcontracts under contracts covered by
paragraph (1); and
(3) options exercised under any such contract
after the expiration of the 180-day period beginning
on the date of the enactment of this subtitle.
SEC. 11203. DEFENSE CONTRACTS.
(a) CLASSIFICATION OF PERSONS AS EMPLOYEES
AND INDEPENDENT CONTRACTORS UNDER DEFENSE
CONTRACTS.—(1) Chapter 141 of title 10, United States
Code, is amended by inserting after section 2393 the fol-
lowing new section:
‘‘§ 2393a. Classification of persons as employees and
independent contractors
‘‘(a) INELIGIBILITY FOR DEFENSE CONTRACTS AND
SUBCONTRACTS.—(1) A person (including any subsidiary,
successor, or related entity of a person) shall not be eligi-
ble for a contract during the 2-year period beginning on
the date of the issuance of any final determination under
Federal law that the person (including any subsidiary or
related entity of the person) willfully misclassified an indi-
vidual for purposes of any employment tax.
‘‘(2) For purposes of this subsection, a determination
is final if all rights to appeal the determination, or to re-
quest a review, rehearing, or redetermination of the mat-
ter that is the subject of the determination, have been ex-
hausted or have lapsed.
‘‘(b) CERTIFICATION OF ADEQUACY OF BIDS TO PAY
EMPLOYMENT TAXES.—A person who submits a bid or
proposal for a contract shall certify that the amount of
the bid or proposal is adequate to pay all employment
taxes with respect to all work to be performed under the
contract by employees of the person.
‘‘(c) NOTIFICATION
OF INDEPENDENT CONTRAC-
TORS.—Each contract shall include a requirement that the
contractor shall provide, to each person who performs
work under the contract and who is treated by the contrac-
tor as an independent contractor for purposes of employ-
ment taxes, a notification regarding—
‘‘(1) all obligations of the independent contrac-
tor under Federal and State law to withhold and pay
employment taxes with respect to work performed
under the contract by the independent contractor
(including work performed by employees of the inde-
pendent contractor); and
‘‘(2) all statutory rights and protections that
are available under Federal and State law to em-
ployees of the contractor and are not available to the
independent contractor (including employees of the
independent contractor), including rights and protec-
tions under the Fair Labor Standards Act of 1938,
the Occupational Safety and Health Act of 1978,
and title VII of the Civil Rights Act of 1964.
‘‘(d) RIGHT OF ACTION.—A person who submits a
bid or proposal for a contract and who suffers damages
as a result of the award of the contract to a person who
knowingly and willfully submits a certification under sub-
section (b) with respect to the contract that is false, may
bring an action for damages against the person awarded
the contract in any district court of the United States in
which the defendant is located.
‘‘(e) APPLICABILITY.—This section applies to con-
tracts entered into under chapter 137 of this title.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘employment tax’ means any tax
imposed by subtitle C of the Internal Revenue Code
of 1986.
‘‘(2) The term ‘contract’ includes subcontracts.
‘‘(3) The term ‘misclassify’ means to treat as
an independent contractor an individual who is an
employee.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2393 the following new item:
‘‘2393a. Classification of persons as employees and independent contractors.’’.
(b) APPLICABILITY.—Section 2393a of title 10, Unit-
ed States Code, as added by subsection (a), shall apply
to—
(1) contracts entered into under chapter 137 of
title 10, United States Code, after the expiration of
the 180-day period beginning on the date of the en-
actment of this subtitle;
(2) subcontracts under contracts covered by
paragraph (1); and
(3) options exercised under any such contract
after the expiration of the 180-day period beginning
on the date of the enactment of this subtitle.
Subtitle B—Federal Employee
Fairness
SEC. 12001. AMENDMENTS RELATING TO ADMINISTRATIVE
DETERMINATION OF FEDERAL EMPLOYEE
DISCRIMINATION CLAIMS.
(a) DEFINITIONS.—Section 701 of the Civil Rights
Act of 1964 (42 U.S.C. 2000e) is amended—
(1) in paragraph (f) by striking ‘‘The term’’
and inserting ‘‘Except when it appears as part of the
term ‘Federal employee’, the term’’, and
(2) by adding at the end the following:
‘‘(o) The term ‘administrative judge’ includes an ad-
ministrative law judge appointed under section 3105 of
title 5 of the United States Code.
‘‘(p) The term ‘Commission’ means the Equal Em-
ployment Opportunity Commission.
‘‘(q) The term ‘entity of the Federal Government’
means an entity to which section 717(a) applies, except
that such term does not include the Library of Congress.
‘‘(r) The term ‘Federal employee’ means an individ-
ual employed by, or who applies for employment with, an
entity of the Federal Government.
‘‘(s) The term ‘Federal employment’ means employ-
ment by an entity of the Federal Government.
‘‘(t) The terms ‘government’, ‘government agency’,
and ‘political subdivision’ do not include an entity of the
Federal Government.’’.
(b) EEOC DETERMINATION OF FEDERAL EMPLOY-
MENT DISCRIMINATION CLAIMS.—Section 717 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e–16) is amended—
(1) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’,
(B) in the second sentence—
(i) by redesignating paragraphs (1),
(2), and (3), as subparagraphs (A), (B),
and (C), respectively,
(ii) in the subparagraph (B), as so re-
designated, by striking ‘‘and’’ at the end,
(iii) in subparagraph (C), as so redes-
ignated, by striking the period at the end
and inserting ‘‘; and’’, and
(iv) by inserting after subparagraph
(C), as so redesignated, the following:
‘‘(D) require each entity of the Federal Govern-
ment—
‘‘(i) to make counseling available to Fed-
eral employees who believe such entity has dis-
criminated against them in violation of this sec-
tion, for the purpose of trying to resolve the
matters with respect to which such discrimina-
tion is alleged (Such entity shall assist such em-
ployee to identify the respondent required by
subsection (c)(1) to be named in a complaint al-
leging such violation, shall inform such Federal
employee individually of the procedures and
deadlines that apply under this section to a
claim alleging such discrimination, and shall
make such counseling available throughout the
administrative process.);
‘‘(ii) to establish a voluntary alternative
dispute resolution process to resolve complaints,
except that a Federal employee’s decision to
forgo such process shall not affect the rights
of such employee under this title;
‘‘(iii) not to discourage Federal employees
from filing complaints on any matter relating to
discrimination in violation of this section;
‘‘(iv) not to require Federal employees to
participate in conciliation made available under
subsection (c)(1)(A)(ii) unless such entity has
an alternative dispute resolution process ap-
proved by the Commission as described in such
subsection; and
‘‘(v) not to require Federal employees to
participate in a dispute resolution process made
available under clause (ii).
‘‘(2)(A) A Federal employee who believes that an en-
tity of the Federal Government has discriminated against
such employee in violation of this section, to whom sub-
section (c)(1)(A)(ii) applies, who has requested such entity
to provide the conciliation described in subsection
(c)(1)(A)(ii), and who is the subject of, or about to be
the subject of, a personnel action to be taken against such
employee as a result of expressing that belief or requesting
such conciliation may file with the Commission a request
for a stay of such personnel action, together with an affi-
davit made by such employee in support of such request.
‘‘(B) Immediately after receiving such request so sup-
ported, the Commission shall appoint an administrative
judge to review such request. Subsection (f)(3) shall apply
with respect to such review and to the issuance of a stay
requested under subparagraph (A).’’.
(C) in the third sentence by striking ‘‘The’’
and inserting the following:
‘‘(3) The’’,
(D) in the fourth sentence by redesignating
paragraphs (1) and (2) as subparagraphs (A)
and (B), respectively,
(E) in the last sentence by striking ‘‘With’’
and inserting the following:
‘‘(4) With’’, and
(F) by adding at the end the following:
‘‘(4)(A) Subject to subparagraph (B), an unlawful
employment practice of the kind described in section
704(a) is established under this section if an employee or
applicant for employment demonstrates that his opposing
any practice made an unlawful employment practice by
this title, his making a charge, testifying, assisting, or par-
ticipating in any manner in an investigation, proceeding,
or hearing under this title, or his communicating with the
Congress regarding discrimination in violation of this sec-
tion was a contributing factor in an adverse personnel ac-
tion that was taken or is to be taken against such em-
ployee or applicant.
‘‘(B) On a claim in which a Federal employee proves
a violation under subparagraph (A) and a respondent
demonstrates, on the basis of the evidentiary standard
specified in section 1221(e)(2) of title 5 of the United
States Code, that the respondent would have to take the
same personnel action in the absence of the impermissible
motivating factor, the court—
‘‘(i) may grant declaratory relief, injunctive re-
lief (except as provided in clause (ii)), and attorney’s
fees and costs demonstrated to be directly attrib-
utable only to the pursuit of a claim under subpara-
graph (A); and
‘‘(ii) shall not award damages or issue an order
requiring any admission, reinstatement, hiring, pro-
motion, or payment not described in clause (i).’’,
(2) by striking subsection (c),
(3) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’,
(B) by striking ‘‘(k)’’ and inserting ‘‘(j)’’,
(C) by striking ‘‘brought hereunder’’ and
inserting ‘‘commenced under this section’’, and
(D) by adding at the end the following:
‘‘(2) The head of the department, agency, or unit in
which discrimination in violation of this section is alleged
to have occurred shall be the defendant in a civil action
alleging such violation. If a department, unit, or agency
is named as the defendant, the court shall freely grant
leave to amend the complaint to name the head of such
department, agency, or unit.
‘‘(3)(A) In any action or proceeding under this sec-
tion, the court, in its discretion, may allow the prevailing
party (other than an entity of the Federal Government)
a reasonable attorney’s fee (including expert fees) and
costs as a court has authority to award under section
706(k), as amended from time to time, and the same inter-
est to compensate for delay in payment as in cases involv-
ing nonpublic parties.
‘‘(B) If an action brought under this section by or
on behalf a Federal employee is found by the court to be
unreasonable, groundless, or vexatious, the court, in its
discretion, may allow the respondent a reasonable attor-
ney’s fee (including expert fees), costs, and interest as a
court has authority to award in an action to a prevailing
party under subparagraph (A).’’,
(4) by redesignating subsections (d) and (e) as
subsections (o) and (p), respectively, and
(5) by inserting after subsection (b) the follow-
ing:
‘‘(c)(1)(A) Except as provided in subparagraphs (B),
(C), (D), and (E), a complaint filed by or on behalf of
a Federal employee or a class of Federal employees and
alleging a claim of discrimination arising under this sec-
tion shall name as the respondent, and be filed with, the
head of the department, agency, or unit in which such dis-
crimination is alleged to have occurred, or with the Com-
mission—
‘‘(i) not later than 180 days after the alleged
discrimination occurs, except as provided in clause
(ii); and
‘‘(ii) in the case of a respondent that provides
to such employee a voluntary alternative dispute res-
olution process approved by the Commission in ac-
cordance with rules issued by the Commission under
section 12005(a)(4) of the Economic Equity Act of
1996, after the expiration of the 20-day period be-
ginning on the date the Federal employee specifically
named in the complaint (or an individual authorized
to represent such Federal employee or both) re-
quests and offers to meet once with an individual
authorized to represent the respondent in accordance
with 
subparagraph 
(B) 
to 
engage 
in 
the
precomplaint conciliation approved under such sec-
tion by the Commission to be provided by the re-
spondent, except that such 20-day period shall be
excluded for purposes calculating such 180 days.
‘‘(B) For purposes of subparagraph (A)(ii)—
‘‘(i) conciliation shall occur during the regular
working hours of such Federal employee; and
‘‘(ii) an individual may not be authorized to
represent the respondent if such individual—
‘‘(I) has or has had any involvement in the
circumstances relating to any of such claims; or
‘‘(II) has or has had supervisory authority
over such Federal employee.
‘‘(C) If, not later than 180 days (determined under
subparagraph (A)) after the alleged discrimination occurs,
the complaint is filed—
‘‘(i) with such department, agency, or unit and
fails to name the head of the department, agency, or
unit as the respondent; or
‘‘(ii) except as provided in subparagraph (E),
with any other entity of the Federal Government, re-
gardless of the respondent named;
the complaint shall be considered to be filed in compliance
with subparagraph (A).
applicable 90-day period specified in paragraph
(2)(B)(ii).
‘‘(B) If such Federal employee files a written request
under subclause (II) or (III) of paragraph (2)(B)(i) and
in accordance with subparagraph (A)(i), the Commission
shall transmit the complaint, not later than 10 days after
the Commission receives the complaint, to the appropriate
agency for determination.
‘‘(f)(1) If such Federal employee files a written re-
quest under subsection (e)(2)(B)(i)(I) and in accordance
with subsection (e)(3)(A) with the Commission for a deter-
mination under this subsection of a claim with respect to
which notice is required by subsection (e)(2), then the
Commission shall transmit a copy of such request to the
respondent and, not later than 10 days after receiving
such request, shall appoint an administrative judge of the
Commission to determine such claim. If such request in-
cludes a request for a stay described in paragraph (3)(A),
then the Commission shall appoint an administrative
judge immediately after receiving such request.
‘‘(2) Not later than 5 days after receiving a copy of
a request under subsection (e)(2)(B)(i), the respondent
shall transmit—
‘‘(A) to the Commission if such request is for
a determination under this subsection; or
‘‘(B) to the Merit Systems Protection Board if
such request is for a determination be made under
the procedures specified in section 7702(a)(2)(A) of
title 5, United States Code;
a copy of all documents and information collected by the
respondent under subsection (d) with respect to such
claim.
‘‘(3)(A) The administrative judge, in accordance with
rules issued by the Commission, may request any member
of the Commission to order a stay of any personnel action
for 45 days if the administrative judge determines that
there are reasonable grounds to believe that the personnel
action was taken for discriminatory or retaliatory reasons
prohibited under this section.
‘‘(B)(i) Any member of the Commission requested
under subparagraph (A) to order a stay shall order such
stay unless the member determines that, under the facts
and circumstances involved, such a stay does not comply
with such rules or otherwise would not be appropriate.
‘‘(ii) Unless denied under clause (i), any stay re-
quested under subparagraph (A) shall be deemed to be
ordered on the third calendar day (excluding Saturdays,
Sundays, and legal holidays) after the date of the request.
‘‘(C) If a stay is ordered under subparagraph (B),
the member who received the request for such stay may
terminate such stay at any time after giving notice, and
an opportunity for oral or written comments, to the ag-
grieved Federal employee on whose behalf such stay was
ordered.
‘‘(D)(i) The Commission may extend the period of
any stay granted under subparagraph (B) for any period
that the Commission considers appropriate.
‘‘(ii) Members of the Commission shall allow any en-
tity of the Federal Government that would be subject to
a stay, or to the extension of a stay, to comment to such
members and the Commission on the request for such stay
and on a request for such extension.
‘‘(iii) The respondent shall comply with a stay in ef-
fect under this section.
‘‘(4) The administrative judge shall determine wheth-
er the documents and information received under para-
graph (2) comply with subsection (d) and are complete
and accurate. If the administrative judge finds that the
respondent has failed to produce the documents and infor-
mation necessary to comply with such subsection, the ad-
ministrative judge shall, in the absence of good cause
shown by the respondent, impose any of the sanctions
specified in paragraph (6)(C) and shall require the re-
spondent—
‘‘(A) to obtain any additional documents and
information necessary to comply with such sub-
section; and
‘‘(B) to correct any inaccuracy in the docu-
ments and information so received.
‘‘(5)(A) After examining the documents and informa-
tion received under paragraph (4), the administrative
judge shall issue an order dismissing—
‘‘(i) any frivolous claim alleged in the com-
plaint;
‘‘(ii) any claim of a Federal employee who fails
to comply with subsection (c)(1)(A)(ii) if applicable
to such employee; and
‘‘(iii) the complaint if it fails to state a non-
frivolous claim for which relief may be granted
under this section.
‘‘(B)(i) If a claim or the complaint is dismissed under
subparagraph (A), the administrative judge shall give for-
mal written notice to the aggrieved Federal employee that
such Federal employee may, before the expiration of the
90-day period beginning on the date such Federal em-
ployee receives such notice—
‘‘(I) file with the Commission a written request
for appellate review of such order; or
‘‘(II) commence a civil action in an appropriate
district court of the United States for de novo review
of such claim or the complaint.
‘‘(ii) Such Federal employee may commence such civil
action after the dismissal of such claim or the complaint
and before the expiration of the 90-day period specified
in clause (i).
‘‘(6)(A)(i) If the complaint is not dismissed under
paragraph (5)(A), the administrative judge shall make a
determination, after an opportunity for a hearing, on the
merits of each claim that is not dismissed under such
paragraph. The administrative judge shall make a deter-
mination on the merits of any other nonfrivolous claim
under this section, and on the merits of any action such
Federal employee may appeal to the Merit Systems Pro-
tection Board, reasonably expected to arise from the facts
on which the complaint is based.
‘‘(ii) On the request of the aggrieved Federal em-
ployee, the administrative judge shall—
‘‘(I) determine whether the administrative pro-
ceeding with respect to such claim may be main-
tained as a class proceeding; and
‘‘(II) if the administrative proceeding may be so
maintained, shall describe those whom the adminis-
trative judge finds to be members of such class.
‘‘(B) With respect to such claim, a party may conduct
discovery by such means as may be available in a civil ac-
tion to the extent deemed appropriate by the administra-
tive judge.
‘‘(C) If the aggrieved Federal employee or the re-
spondent fails without good cause to respond fully and in
a timely fashion to a request made or approved by the
administrative judge for information or the attendance of
a witness, and if such information or such witness is solely
in the control of the party who so fails to respond, then
the administrative judge shall—
‘‘(i) draw an adverse inference that the re-
quested information, or the testimony of the re-
quested witness, would have reflected unfavorably on
the party who so fails to respond;
‘‘(ii) consider the matters to which such infor-
mation or such testimony pertains to be established
in favor of the opposing party;
‘‘(iii) exclude other evidence offered by the
party who so fails to respond;
‘‘(iv) grant full or partial relief, including—
‘‘(I) relief of the kinds described in section
706(g); and
‘‘(II) compensatory damages for unlawful
intentional discrimination (not an employment
practice that is unlawful because of its dispar-
ate impact) prohibited under this section, sub-
ject to the limitations specified in section
1977A(b)(3) of the Revised Statutes of the
United States;
to the aggrieved Federal employee; or
‘‘(v) take such other action the administrative
judge considers to be appropriate.
‘‘(D) In a hearing on a claim, the administrative
judge shall—
‘‘(i) limit attendance to persons who have a di-
rect connection with such claim;
‘‘(ii) bring out pertinent facts and relevant em-
ployment practices and policies, and ensure that the
record is developed for a full and fair determination
of such claim, but exclude irrelevant or unduly rep-
etitious information;
‘‘(iii) permit all parties to examine and cross
examine witnesses; and
‘‘(iv) require that testimony be given under
oath or affirmation.
‘‘(E) At the request of any party or the administra-
tive judge, a transcript of all or part of such hearing shall
be provided in a timely manner and simultaneously to the
parties and the Commission. The respondent shall bear
the cost of providing such transcript.
‘‘(F) The administrative judge shall have authority—
‘‘(i) to administer oaths and affirmations;
‘‘(ii) to regulate the course of hearings;
‘‘(iii) to rule on offers of proof and receive evi-
dence;
‘‘(iv) to issue subpoenas to compel—
‘‘(I) the production of documents or infor-
mation by the entity of the Federal Government
in which discrimination is alleged to have oc-
curred; and
‘‘(II) the attendance of witnesses who are
Federal officers or employees of such entity;
‘‘(v) to request the Commission to issue subpoe-
nas to compel the production of documents or infor-
mation by any other entity of the Federal Govern-
ment or by the aggrieved Federal employee, and the
attendance of other witnesses, except that any wit-
ness who is not an officer or employee of an entity
of the Federal Government may be compelled only to
attend any place—
‘‘(I) less than 100 miles from the place
where such witness resides, is employed, trans-
acts business in person, or is served; or
‘‘(II) at such other convenient place as is
fixed by the administrative judge;
and shall be paid fees and allowances, by the party
that requests the subpoena, to the same extent that
fees and allowances are paid to witnesses under
chapter 119 of title 28, United States Code, as
amended from time to time;
‘‘(vi) to exclude witnesses whose testimony
would be unduly repetitious;
‘‘(vii) to exclude any person from a hearing for
contumacious conduct, or for misbehavior, that ob-
structs such hearing; and
‘‘(viii) to grant full or partial relief, including—
‘‘(I) relief of the kinds described in section
706(g); and
‘‘(II) compensatory damages for unlawful
intentional discrimination (not an employment
practice that is unlawful because of its dispar-
ate impact) prohibited under this section, sub-
ject to the limitations specified in section
1977A(b)(3) of the Revised Statutes of the
United States.
‘‘(G) The administrative judge and the Commission
shall have authority to award to a prevailing party (other
than an entity of the Federal Government)—
‘‘(i) a reasonable attorney’s fee (including ex-
pert fees) and costs as a court has authority to
award under section 706(k), as amended from time
to time; and
‘‘(ii) the same interest to compensate for delay
in payment as in cases involving nonpublic parties.
‘‘(H) The Commission shall have authority to issue
subpoenas described in subparagraph (F)(v).
‘‘(I) In the case of contumacy or failure to obey a
subpoena issued under subparagraph (F) or (H), the Unit-
ed States district court for the judicial district in which
the person to whom the subpoena is addressed resides or
is served may issue an order requiring such person to ap-
pear at any designated place to testify or to produce docu-
mentary or other evidence.
‘‘(7)(A) Except as provided in subparagraph (B), the
administrative judge shall issue a written order making
the determination required by paragraph (6)(A), and
granting or denying relief, not later than—
‘‘(i)(I) 300 days after the complaint containing
such claim is filed by or on behalf of a Federal em-
ployee if such complaint is filed in the 1-year period
beginning on the effective date of this subsection.
‘‘(II) except as provided in subclause (I), 210
days after the complaint containing such claim is
filed by or on behalf of a Federal employee; or
‘‘(ii) 2 years and 30 days after the complaint
containing such claim is filed on behalf of a class of
Federal employees;
except that these time periods shall be extended for 30
days if the administrative judge certifies, in writing, that
such 30-day period is needed to secure additional docu-
ments or information from the respondent to have a com-
plete administrative record.
‘‘(B) The administrative judge shall issue such order
not later than 30 days after the applicable period specified
in subparagraph (A) if the administrative judge certifies
in writing, before the expiration of such applicable pe-
riod—
‘‘(i) that such 30-day period is necessary to
make such determination; and
‘‘(ii) the particular and unusual circumstances
that prevent the administrative judge from comply-
ing with the applicable period specified in subpara-
graph (A).
‘‘(C) The administrative judge may apply to the Com-
mission to extend any period applicable under subpara-
graph (A) or (B) if manifest injustice would occur in the
absence of such an extension.
‘‘(D) The Commission—
‘‘(i) may not grant such extension; or
‘‘(ii) shall terminate such extension;
if the aggrieved Federal employee shows that such exten-
sion would prejudice a claim of, or otherwise harm, such
Federal employee.
‘‘(E) In addition to findings of fact and conclusions
of law, such order shall include formal written notice to
each party that before the expiration of the 90-day period
beginning on the date such party receives such order—
‘‘(i) the aggrieved Federal employee may com-
mence a civil action in an appropriate district court
of the United States for de novo review of a claim
with respect to which such order is issued; and
‘‘(ii) unless and until a civil action is com-
menced in such 90-day period under clause (i) with
respect to such claim, any party may file with the
Commission a written request for appellate review of
the determination made, and relief granted or de-
nied, in such order with respect to such claim.
‘‘(F) Such Federal employee may commence such
civil action at any time before the expiration of the 90-
day period beginning on the date such Federal employee
receives an order described in subparagraph (A).
‘‘(G) If such order applies to more than one claim
and if—
‘‘(i) such employee does not commence a civil
action in accordance with subparagraph (E)(i); and
‘‘(ii) neither party requests appellate review in
accordance with subparagraph (E)(ii);
with respect to a particular claim, then the determination
made, and relief granted, in such order with respect to
such particular claim shall be enforceable immediately.
‘‘(g)(1) If a party files timely a written request in
accordance with subsection (f)(5)(B)(i) or (f)(7)(E)(ii)
with the Commission for appellate review of the deter-
mination made, and relief granted or denied, with respect
to a claim in such order, then the Commission shall imme-
diately transmit a copy of such request to the other parties
involved and to the administrative judge who issued such
order.
‘‘(2) Not later than 7 days after receiving a copy of
such request, the administrative judge shall transmit to
the Commission the record of the proceeding on which
such order is based, including all documents and informa-
tion collected by the respondent under subsection (d).
‘‘(3)(A) After allowing the parties to file briefs with
respect to such determination, the Commission shall issue
a written order with respect to such claim affirming, re-
versing, or modifying the applicable provisions of the order
of the administrative judge not later than—
‘‘(i) 150 days after receiving such request; or
‘‘(ii) 30 days after such 150-day period if the
Commission certifies in writing, before the expiration
of such 150-day period—
‘‘(I) that such 30-day period is necessary
to review such claim; and
‘‘(II) the particular and unusual cir-
cumstances that prevent the Commission from
complying with clause (i).
‘‘(B) The Commission shall affirm the determination
made, and relief granted or denied, by the administrative
judge with respect to such claim if such determination and
such relief are supported by a preponderance of the evi-
dence in the record taken as a whole and are otherwise
in accordance with law. The Commission shall accord sub-
stantial deference to the findings of fact of the administra-
tive judge.
‘‘(C) In addition to findings of fact and conclusions
of law, the Commission shall include in its order formal
written notice to the aggrieved Federal employee that, be-
fore the expiration of the 90-day period beginning on the
date such Federal employee receives such order, such Fed-
eral employee may commence a civil action in an appro-
priate district court of the United States for de novo re-
view of a claim with respect to which such order is issued.
‘‘(D) Such Federal employee may commence such
civil action at any time before the expiration of the 90-
day period beginning on the date such Federal employee
receives an order described in subparagraph (A).
‘‘(h)(1) In addition to the periods authorized by sub-
sections (f)(7)(F) and (g)(3)(D)—
‘‘(A) during the period beginning 20 days after
the expiration of the applicable period specified in
subparagraph (A) or (B) of subsection (f)(7) and
ending on the date the administrative judge issues
under such subsection an order with respect to such
claim; and
‘‘(B) during the period beginning 20 days after
the expiration of the applicable period specified in
subsection (g)(3)(A) and ending on the date the
Commission issues under such subsection an order
with respect to such claim;
such Federal employee may commence a civil action in an
appropriate district court of the United States for de novo
review of such claim.
‘‘(2) Whenever a civil action is commenced timely and
otherwise in accordance with this section to determine the
merits of a claim arising under this section, the jurisdic-
tion of the administrative judge or the Commission (as
the case may be) to determine the merits of such claim
shall terminate.
‘‘(i) A Federal employee who prevails on a claim aris-
ing under this section may bring a civil action in an appro-
priate district court of the United States to enforce—
‘‘(1) the provisions of a settlement agreement
applicable to such claim;
‘‘(2) the provisions of an order issued by an ad-
ministrative judge under subsection (f)(7)(A) appli-
cable to such claim if—
‘‘(A) a request is not filed timely under
subsection (g)(1) for appellate review by the
Commission; and
‘‘(B) a civil action is not commenced time-
ly under subsection (g)(3)(D) for de novo re-
view;
of such claim; or
‘‘(3) the provisions of an order issued by the
Commission under subsection (g)(3)(A) applicable to
such claim if a civil action is not commenced timely
under subsection (g)(3)(D) for de novo review of
such claim.
‘‘(j) Any amount awarded under this section (includ-
ing fees, costs, and interest awarded under subsection
(f)(6)(G)), or under title 28 of the United States Code,
with respect to a violation of this section, shall be paid
by the entity of the Federal Government that violated such
subsection from any funds made available to such entity
by appropriation or otherwise.
‘‘(k)(1) An entity of the Federal Government against
which a claim of discrimination is alleged in a complaint
filed in an administrative proceeding or a civil action
under this section shall grant the aggrieved Federal em-
ployee paid administrative leave if otherwise on duty, for
time expended in accordance with rules issued by the Com-
mission to carry out this section, except that such leave
shall include reasonable time for—
‘‘(A) preparation of a complaint based on such
allegation;
‘‘(B) 
conciliation 
required 
by 
subsection
(c)(1)(A)(ii);
‘‘(C) responding to requests made by the Com-
mission (including administrative judges) or the re-
spondent for information; and
‘‘(D) attendance at such proceeding or action.
‘‘(2) Except as provided in paragraph (1), an entity
of the Federal Government shall grant a Federal em-
ployee—
‘‘(A) paid administrative leave to participate for
the benefit of a claimant in an administrative pro-
ceeding or civil action commenced under this section
to the same extent and under such circumstances as
such entity would grant an employee official duty or
paid administrative leave to participate for the bene-
fit of a Federal entity in an administrative proceed-
ing or civil action commenced under this section
against such entity; and
‘‘(B) other leave to participate for the benefit of
a claimant in an administrative proceeding or civil
action commenced under this section to the same ex-
tent and under such circumstances as such entity
would grant an employee other leave to participate
for the benefit of a Federal entity in an administra-
tive proceeding or civil action commenced under this
section against such entity.
‘‘(l)(1) In enforcing compliance with an order issued
by an administrative judge or the Commission, the Com-
mission may make a written determination that—
‘‘(A) any officer or employee of the agency, de-
partment, or unit charged with complying with such
order; or
‘‘(B) any officer or employee of the United
States determined to be responsible for the failure of
the agency, department, or unit to comply with such
order;
who is not an officer or employee appointed by the Presi-
dent by and with the advice and consent of the Senate,
shall not be entitled to receive payment for service as an
officer or employee for the period during which such order
has not been complied with. The Commission shall certify
to the Comptroller General of the United States that a
determination under this paragraph has been made, and
no payment shall be made out of the Treasury of the Unit-
ed States for any service specified in such determination.
‘‘(2) In enforcing compliance with such order with re-
spect to any officer or employee described in subparagraph
(A) or (B) of paragraph (1) who is an officer or employee
appointed by the President by and with the advice and
consent of the Senate, the Commission shall notify the
President that such officer or employee has failed to obey
such order.
‘‘(m) If with respect to the merits of a claim of inten-
tional discrimination (other than an employment practice
that is unlawful because of its disparate impact) prohib-
ited by this section, a Federal employee prevails in a pro-
ceeding under subsection (f) or a civil action commenced
under this section, then not later than 15 days after issu-
ing an order finding liability under this section, the admin-
istrative judge or the district court involved shall transmit
to the Office of Special Counsel a copy of such order.
‘‘(n) This section, as in effect immediately before the
effective date of the Economic Equity Act of 1996, shall
apply with respect to employment in the Library of Con-
gress.’’.
SEC. 12002. AMENDMENTS TO THE AGE DISCRIMINATION IN
EMPLOYMENT ACT AND THE REHABILITA-
TION ACT OF 1973.
(a) ENFORCEMENT BY EEOC.—(1) Section 15 of the
Age Discrimination in Employment Act of 1967 (29
U.S.C. 633a) is amended—
(A) by striking subsections (c) and (d),
(B) by inserting after subsection (b) the follow-
ing:
‘‘(c)(1)(A) Except as provided in subparagraph (B),
any individual aggrieved by a violation of subsection (a)
of this section may file a complaint with the Commission
in accordance with section 717 of the Civil Rights Act of
1964.
‘‘(B) Subsections (c) and (d) of this section, as in
effect immediately before the effective date of the Eco-
nomic Equity Act of 1996, shall apply with respect to em-
ployment in the Library of Congress.
‘‘(2) Except as provided in paragraph (1)(B) and
subsection (d), such section 717 shall apply to a violation
alleged in a complaint filed under paragraph (1) in the
same manner as such section applies to a claim arising
under section 717 of such Act.
‘‘(d)(1) If an individual aggrieved by a violation of
this section does not file a complaint under subsection
(c)(1), such individual may commence a civil action—
‘‘(A) not less than 30 days after filing with the
Commission a notice of intent to commence such ac-
tion; and
‘‘(B) not more than 2 years after the alleged
violation of this section occurs;
in an appropriate district court of the United States for
de novo review of such violation.
‘‘(2) On receiving such notice, the Commission
shall—
‘‘(A) promptly notify all persons named in such
notice as prospective defendants in such action; and
‘‘(B) take any appropriate action to ensure the
elimination of any unlawful practice.
‘‘(3) Section 717(o) of the Civil Rights Act of 1964
(42 U.S.C. 2000e–16(o)) shall apply to civil actions com-
menced under this subsection in the same manner as such
section applies to civil actions commenced under section
717 of the Civil Rights Act of 1964.’’,
(C) in subsection (f)—
(i) by inserting ‘‘(1)’’ after ‘‘(f)’’,
(ii) by striking ‘‘section 12(b)’’ and insert-
ing ‘‘sections 12(b) and 4(d)’’, and
(iii) by adding at the end the following:
‘‘(2)(A) Subject to subparagraph (B), an unlawful
personnel action of the kind described in section 4(d) is
established under subsection (a) if an employee or appli-
cant for employment demonstrates that his opposing any
practice made an unlawful employment practice by sub-
section (a), his making a charge, testifying, assisting, or
participating in any manner in an investigation, proceed-
ing, or hearing under this section, or his communicating
with the Congress regarding discrimination in violation of
subsection (a) was a contributing factor in an adverse per-
sonnel action that was taken or is to be taken against such
employee or applicant.
‘‘(B) On a claim in which a Federal employee proves
a violation under subparagraph (A) and a respondent
demonstrates, on the basis of the evidentiary standard
specified in section 1221(e)(2) of title 5 of the United
States Code, that the respondent would have taken the
same personnel action in the absence of the impermissible
motivating factor, the court—
‘‘(i) may grant declaratory relief, injunctive re-
lief (except as provided in clause (ii)), and attorney’s
fees and costs demonstrated to be directly attrib-
utable only to the pursuit of a claim under subpara-
graph (A); and
‘‘(ii) shall not award damages or issue an order
requiring any admission, reinstatement, hiring, pro-
motion, or payment not described in clause (i).’’,
(2) Section 505 of the Rehabilitation Act of 1973 (29
U.S.C. 794a) is amended—
(A) in subsection (a)(1)—
(i) by inserting ‘‘(A)’’ after ‘‘(a)(1)’’,
(ii) by striking ‘‘706(k)’’ and inserting
‘‘706(j)’’,
(iii) by striking ‘‘through (k)’’ and insert-
ing ‘‘through (j)’’, and
(iv) by adding at the end the following:
‘‘(B) The first sentence of this paragraph, as in effect
immediately before the effective date of the Economic Eq-
uity Act of 1996, shall apply with respect to employment
in the Library of Congress.’’, and
(B) in subsection (b) by striking ‘‘In’’ and in-
serting ‘‘Except as provided in subsection (a)(1),
in’’.
(b) OPPORTUNITY TO COMMENCE CIVIL ACTION.—
If a complaint filed under section 15 of the Age Discrimi-
nation in Employment Act of 1967 (29 U.S.C. 633a), or
section 501 of the Rehabilitation Act of 1973 (29 U.S.C.
791)), with the Equal Employment Opportunity Commis-
sion is pending in the period beginning on the date of the
enactment of this subtitle and ending on December 31,
1996, the individual who filed such complaint may com-
mence a civil action under such section not later than June
30, 1997.
SEC. 12003. AMENDMENTS TO TITLE 5 OF THE UNITED
STATES CODE.
(a) GRIEVANCE PROCEDURES.—Section 7121 of title
5, United States Code, is amended—
(1) in subsection (a)(1) by inserting ‘‘adminis-
trative’’ after ‘‘exclusive’’, and
(2) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’,
(B) in the first sentence by inserting ‘‘, in
the discretion of the aggrieved employee,’’ after
‘‘may’’, and
(C) in the last sentence by striking ‘‘Selec-
tion’’ and all that follows through ‘‘any other’’,
and inserting the following:
‘‘(2) An employee may commence, not later than 120
days after a final decision, a civil action in an appropriate
district court of the United States for de novo review of
a’’.
(b) ACTIONS INVOLVING DISCRIMINATION.—Section
7702 of title 5, United States Code, is amended to read
as follows:
‘‘§ 7702. Actions involving discrimination
‘‘(a)(1) Notwithstanding any other provision of law,
in the case of any employee or applicant for employment
who—
‘‘(A) is affected by—
‘‘(i) an action which the employee or appli-
cant may appeal to the Merit Systems Protec-
tion Board, or
‘‘(ii) an action, not described in clause
(i)—
‘‘(I) on the part the Equal Employ-
ment Opportunity Commission, and
‘‘(II) with respect to which the em-
ployee or applicant makes an election
under section 717(e)(2)(B)(i)(II) of the
Civil Rights Act of 1964, and
‘‘(B) alleges that a basis for the action was dis-
crimination prohibited by—
‘‘(i) section 717 of the Civil Rights Act of
1964 (42 U.S.C. 2000a–16),
‘‘(ii) section 6(d) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(d)),
‘‘(iii) section 501 of the Rehabilitation Act
of 1973 (29 U.S.C. 791),
‘‘(iv) sections 12 and 15 of the Age Dis-
crimination in Employment Act of 1967 (29
U.S.C. 631, 633a), or
‘‘(v) any rule, regulation, or policy directive
prescribed under any provision of law described
in clauses (i) through (iv) of this subparagraph,
the employee or applicant may raise the action as provided
in paragraph (2).
‘‘(2) For purposes of paragraph (1), the employee
shall raise the action by filing a complaint in accordance
with section 717 of the Civil Rights Act of 1964 and shall
make a request described in section 717(e)(2)(B)(i) select-
ing the procedures specified in one of the following sub-
paragraphs:
‘‘(A) The administrative and judicial procedures
provided under sections 7701 and 7703.
‘‘(B) The administrative and judicial procedures
provided under section 7121.
‘‘(C) The administrative and judicial procedures
provided under section 717 of the Civil Rights Act
of 1964.
‘‘(3) The agency (including the Board and the Equal
Employment Opportunity Commission) that carries out
such procedures shall apply the substantive law that is ap-
plied by the agency that administers the particular law
referred to in subsection (a)(1) that prohibits the conduct
alleged to be the basis of the action referred to in sub-
section (a)(1)(A).
‘‘(b) If—
‘‘(1) an employee elects the procedures specified
in subsection (a)(2)(C), and
‘‘(2) the Equal Employment Opportunity Com-
mission dismisses under section 717(f)(5)(A) of the
Civil Rights Act of 1964 a claim that is based on
the action raised by the employee,
then the employee shall have 20 days in which to raise
the action under the procedures specified in subparagraph
(A) or (B) of subsection (a)(2), except that no allegation
of a kind described in subsection (a)(1)(B) may be raised
under this subsection.
‘‘(c) If at any time after the 120th day following the
receipt under section 717(e)(3)(B) of the Civil Rights Act
of 1964 of a complaint as a result of an election made
under section 717(e)(2)(B)(i) of the Civil Rights Act of
1964 to raise an action under the procedures specified in
subsection (a)(2)(A) there is no judicially reviewable ac-
tion, an employee shall be entitled to file, not later than
240 days after making such election, a civil action in an
appropriate district court of the United States for de novo
review of the action raised under subsection (a).
‘‘(d) Nothing in this section shall be construed to af-
fect the right to trial de novo under any provision of law
described in subsection (a)(1) after a judicially reviewable
action.’’.
(c) DISCIPLINARY ACTION.—(1) Section 1214 of title
5, United States Code, is amended by adding at the end
the following:
‘‘(g)(1) Whenever the Office of Special Counsel re-
ceives any copy of an order, in accordance with section
717(m) of the Civil Rights Act of 1964, with respect to
a claim arising under section 717 of the Civil Rights Act
of 1964, section 15(a) of the Age Discrimination in Em-
ployment Act of 1967, or section 501 of the Rehabilitation
Act of 1973, the Special Counsel shall investigate the mat-
ter to the extent necessary to determine whether there are
reasonable grounds to believe that a prohibited personnel
practice described in section 2302(b)(1) has occurred and,
if so, shall seek the appropriate disciplinary action under
section 1215.
‘‘(2) A determination under this subsection shall be
made not later than 180 days after the appropriate date
under paragraph (3) for the last applicable event described
in such paragraph.
‘‘(3)(A) With respect to a claim—
‘‘(i) to which an order issued by an administra-
tive judge of the Equal Employment Opportunity
Commission applies, and
‘‘(ii) with respect to which the aggrieved em-
ployee neither—
‘‘(I) commences a civil action in accord-
ance with section 717(f)(7)(E)(i) of the Civil
Rights Act of 1964, nor
‘‘(II) requests appellate review in accord-
ance with section 717(f)(7)(E)(ii) of the Civil
Rights Act of 1964,
the appropriate date is the date on which the Office of
Special Counsel receives a copy of an order (referred to
in paragraph (1)) from the administrative judge.
‘‘(B) With respect to a claim—
‘‘(i) to which an order issued by the Equal Em-
ployment Opportunity Commission applies, and
‘‘(ii) with respect to which the aggrieved em-
ployee does not commence a civil action in accord-
ance with section 717(g)(3)(D),
the appropriate date is the date on which the Office of
Special Counsel receives a copy of an order (referred to
in paragraph (1)) from the Commission.
‘‘(C) With respect to a claim to which a final judg-
ment issued by a court of the United States applies, the
appropriate date is the date on which the Office of Special
Counsel receives a copy of an order (referred to in para-
graph (1)) from such court.
‘‘(4) For the purpose of this subsection—
‘‘(A) the term ‘order’ means an order issued on
the merits;
‘‘(B) the term ‘judgment’ means a judgment is-
sued on the merits; and
‘‘(C) the term ‘final judgment’ means a judg-
ment that is either—
‘‘(i) not reviewed by any other court that
has authority to review such judgment; or
‘‘(ii) not reviewable by any other court.’’.
(2) Section 1218 of title 5, United States Code, is
amended—
(A) by inserting ‘‘(a)’’ before the first sentence;
and
(B) by adding at the end the following:
‘‘(b) Any statistical or other information provided
under the first sentence of subsection (a) shall specify with
respect to each particular prohibited personnel practice,
the extent to which such information relates to any matter
referred to in section 1214(g), the disposition of such
practice, and the basis for such disposition.’’.
(d) RECORDKEEPING.—(1) Chapter 23 of title 5,
United States Code, is amended by adding at the end the
following:
‘‘§ 2306. Federal personnel records
‘‘(a) For the purpose of this section—
‘‘(1) the term ‘personnel action’ has the mean-
ing given such term in section 2302(a)(2)(A);
‘‘(2) the term ‘record’ has the meaning given
such term in section 552a(a)(4); and
‘‘(3) the term ‘employee’ means an employee or
applicant for employment in any entity of the Fed-
eral Government to which—
‘‘(A) section 717(a) of the Civil Rights Act
of 1964 applies;
‘‘(B) section 501 of the Rehabilitation Act
of 1973 applies; or,
‘‘(C) sections 12 and 15 of the Age Dis-
crimination in Employment Act of 1967 apply;
but does not include any employee or applicant for
employment with respect to whom section 117, or
title III (excluding section 320), of the Civil Rights
Act of 1991 applies.
‘‘(b) Records relating to any personnel action taken
with respect to an employee shall be maintained by the
employing authority for at least the greater of—
‘‘(1) 270 days after the effective date of the
personnel action to which such records relate; or
‘‘(2) the period of time otherwise required
under applicable provisions of law, rule, or regula-
tion, if any.
‘‘(c) The Office of Personnel Management, in con-
sultation with the Equal Employment Opportunity Com-
mission, shall issue guidelines for the implementation of
this section by an entity of the Federal Government (as
defined in section 701 of the Civil Rights Act of 1964).’’.
(2) The table of sections for chapter 23 of title 5,
United States Code, is amended by adding at the end the
following:
‘‘2306. Federal personnel records.’’.
(e) CONFORMING AMENDMENTS.—Section 7703(b)
of title 5, United States Code, is amended—
(1) in paragraph (1) by striking ‘‘(1) Except as
provided in paragraph (2) of this subsection, a’’ and
inserting ‘‘A’’, and
(2) by striking paragraph (2).
(f) RIGHT TO INTERVENE.—Section 1212(c)(2) of
title 5, United States Code, is amended—
(1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’;
and
(2) by adding at the end the following:
‘‘(B) Consent under subparagraph (A) shall not be
required, in the case of an appeal from an action, if—
‘‘(i) section 7513(d) is the provision making the
action appealable to the Board;
‘‘(ii) the appeal is brought in a matter with re-
spect to which a copy of an order has been received
by the Office of Special Counsel under section
717(m) of the Civil Rights Act of 1964; and
‘‘(iii) 1 of the grounds for the action being ap-
pealed is discrimination of a type described in sec-
tion 2302(b)(1).’’.
SEC. 12004. TECHNICAL AMENDMENTS.
Section 717(b) of the Civil Rights Act of 1964 (42
U.S.C. 2000e–16(b)) is amended by striking ‘‘Civil Service
Commission’’ each place it appears and inserting ‘‘Com-
mission’’.
SEC. 12005. ISSUANCE OF PROCEDURAL GUIDELINES AND
NOTICE RULES.
(a) ISSUANCE
OF CERTAIN RULES
AND GUIDE-
LINES.—After providing notice in accordance with section
553(b) of title 5, United States Code, and not later than
1 year after the date of the enactment of this subtitle,
the Equal Employment Opportunity Commission shall
issue—
(1) rules to assist entities of the Federal Gov-
ernment to comply with section 717(d) of the Civil
Rights Act of 1964, as added by section 12002 of
this subtitle,
(2) rules establishing—
(A) a uniform written official notice to be
used to comply with section 717 of such Act, as
added by section 12002 of this subtitle, and
(B) detailed requirements applicable to col-
lecting and preserving documents and informa-
tion under section 717(d), as added by section
12002 of this subtitle,
(3) guidelines describing an alternative dispute
resolution process that may be used by entities of
the Federal Government (as defined in section
701(p) of the Civil Rights Act of 1964 (7 U.S.C.
2000e(p)), in their discretion, consistent with the
administrative process applicable to claims under
section 717 of such Act, and
(4) rules establishing the criteria, standards,
and process for obtaining Commission simultaneous
approval of—
(A) a process for precomplaint conciliation
of the kind required by section 717(c)(1)(A)(i)
of the Civil Rights Act of 1964, and
(B) an alternative dispute resolution proc-
ess for purposes of such section.
(b) PUBLICATION OF PROPOSED GUIDELINES.—Not
later than 180 days after the date of the enactment of
this subtitle, the Equal Employment Opportunity Com-
mission shall publish in the Federal Register proposed
guidelines of the kind described in subsection (a)(3) and
proposed rules of the kind described in subsection (a)(4),
and allow not less than 30 days for public comment before
issuing guidelines and rules under paragraphs (3) and (4)
of subsection (a).
(c) STANDARDS FOR ALTERNATIVE DISPUTE RESO-
LUTION PROCESSES.—The guidelines required by sub-
sections (a) and (b) shall provide for alternative dispute
resolution processes that include—
(1) procedural rules applicable to the operation
of such processes, including a description of the
roles of Federal employees and the authorized rep-
resentatives of such employees in such processes,
(2) an opportunity for meaningful participation
by Federal employees, and their authorized rep-
resentatives if appropriate, in the design and devel-
opment of such processes and such rules,
(3) methods for selecting and training qualified
facilitators, including the use of nonparty neutrals
not from the employing activities,
(4) providing to the parties access to relevant
documents and witnesses,
(5) application of decisional law and legal prin-
ciples,
(6) periodic evaluation of the efficacy of
facilitators,
(7) periodic evaluation of the efficacy of the al-
ternative dispute resolution process and conciliation
(including precomplaint conciliation), and reporting
on the resolution and settlement of disputes under
such process, and
(8) confidentiality of communications (including
offers of settlement) among participants in such
process.
(d) IDENTIFICATION
OF APPROVED ALTERNATIVE
DISPUTE RESOLUTION PROCESSES.—Not later than 21
months after the date of the enactment of this subtitle,
and annually thereafter, the Equal Employment Oppor-
tunity Commission shall publish in the Federal Register
the names of the entities of the Federal Government (as
defined in section 701 of the Civil Rights Act of 1964)
that provide a voluntary alternative dispute resolution
process approved by the Commission in accordance with
the rules in effect under subsection (a)(4).
(e) 
VOLUNTARY
SETTLEMENT
PROGRAM.—The
Equal Employment Opportunity Commission shall issue
rules establishing a program and procedures, consistent
with the administrative adjudication of claims under sec-
tion 717 of the Civil Rights Act of 1964 as amended by
this subtitle, to foster the voluntary settlement of such
claims.
(f) REPORTING REQUIREMENT.—Section 705 of the
Civil Rights Act of 1964 (42 U.S.C. 2000–e4) is amended
by adding at the end the following:
‘‘(l) The Commission shall include in each report
made under subsection (e) the following information sepa-
rately identified with respect to each entity of the Federal
Government for the period for which such report is made:
‘‘(1) The number of Federal employees who
participated in conciliation provided under section
717(c)(1)(A)(ii) as added by the Economic Equity
Act of 1996.
‘‘(2) The number of such employees who en-
tered into a settlement under section 717, as amend-
ed by such Act, for relief of any kind.
‘‘(3) The number of such employees who filed
complaints under such section 717.
‘‘(4) The number of other Federal employees
who filed complaints under such section.
The head of each such entity shall provide such informa-
tion timely to the Commission to enable the Commission
to comply with this subsection.’’.
SEC. 12006. ISSUANCE OF RULES REGARDING CLASSIFIED
INFORMATION.
(a) RULES REQUIRED.—The Equal Employment Op-
portunity Commission, in consultation with the Director
of Central Intelligence, the Secretary of Defense, and the
Director of the Information Security Oversight Office of
the General Services Administration, shall issue rules to
ensure the protection of classified information and na-
tional security information in administrative proceedings
under section 717 of the Civil Rights Act of 1964 (42
U.S.C. 2000e–16). Such rules shall include a requirement
that complaints filed under section 717(c) of such Act that
bear on classified information shall be handled only by ad-
ministrative judges, and other personnel, who have appro-
priate security clearances.
(b) DEFINITION.—For purposes of subsection (a),
the term ‘‘classified information’’ has the meaning given
such term in section 606(1) of the National Security Act
of 1947 (50 U.S.C. 426(1)).
SEC. 12007. RULES OF CONSTRUCTION.
Any reference in any law (other than title VII of the
Civil Rights Act of 1964) to any provision of title VII of
the Civil Rights Act of 1964 amended by this subtitle shall
be deemed to be a reference to such provision as amended
by this subtitle.
SEC. 12008. SENSE OF THE CONGRESS.
(a) APPROPRIATION OF FUNDS.—It is the sense of
the Congress that because the amendments made by this
subtitle—
(1) impose on the Equal Employment Oppor-
tunity Commission additional administrative respon-
sibility in the processing of claims of Federal em-
ployees based on discrimination in employment, and
(2) increase the financial burden on the Com-
mission to carry out such responsibility,
the amount appropriated to the Commission to carry out
laws prohibiting discrimination in Federal employment
should be increased accordingly to enable the Commission
to carry out its additional responsibility.
(b) PAYMENT OF RELIEF AWARDED.—It is the sense
of the Congress that the payment of any relief awarded
under section 717 of the Civil Rights Act of 1964 (42
U.S.C. 20003–16) should not be made by any Federal
agency out of any funds appropriated to such agency for
the salaries and expenses.
SEC. 12009. EFFECTIVE DATES; APPLICATION OF AMEND-
MENTS.
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsections (b) and (c), this subtitle and the
amendments made by this subtitle shall take effect on
January 1, 1998.
(b) EFFECTIVE DATE
OF SECTIONS 12005 AND
12006.—Sections 12005 and 12006 shall take effect on
the date of the enactment of this subtitle.
(c) APPLICATION OF AMENDMENTS.—The amend-
ments made by this subtitle shall not apply with respect
to—
(1) complaints filed under section 717 of the
Civil Rights Act of 1964 (42 U.S.C. 2000e–16) be-
fore the effective date of this subtitle; and
(2) proceedings pending under title 5 of the
United States Code before the effective date of this
subtitle.
Subtitle C—Legislative Pay Equity
Study
SEC. 13001. DECLARATION OF POLICY.
The Congress is committed to the elimination of all
forms of discrimination that adversely affect pay or work-
ing conditions of any employee because of the race, color,
religion, sex, or national origin of the employee, and it is
the policy of the Congress that persons employed in the
legislative branch shall receive equal pay in cases in which
the work performed is comparable, as measured by the
composite of skill, effort, responsibility, and working con-
ditions normally required in the performance of the job.
SEC. 13002. ESTABLISHMENT OF COMMISSION.
(a) IN GENERAL.—There is established the Commis-
sion on Employment Discrimination in the Legislative
Branch (hereinafter in this subtitle referred to as the
‘‘Commission’’).
(b) APPOINTMENT OF MEMBERS.—The Commission
shall consist of thirteen members to be appointed for the
life of the Commission as follows:
(1) Four shall be Members of the House of
Representatives, appointed by the Speaker of the
House of Representatives, two upon recommendation
of the majority leader and two upon recommendation
of the minority leader.
(2) Four shall be Senators, appointed by the
President pro tempore, two upon recommendation of
the majority leader and two upon recommendation of
the minority leader.
(3) Two shall be other than Members of Con-
gress, appointed by the Speaker of the House of
Representatives and shall, to the extent practicable,
be persons with expertise in job evaluation. One such
member shall be appointed upon recommendation of
the majority leader and one upon recommendation of
the minority leader.
(4) Two shall be other than Members of Con-
gress, appointed by the President pro tempore of the
Senate and shall, to the extent practicable, be per-
sons with expertise in job evaluation. One such
member shall be appointed upon recommendation of
the majority leader and one shall be appointed upon
recommendation of the minority leader.
(5) One shall be appointed by the Speaker of
the House of Representatives and the President pro
tempore of the Senate, acting jointly, upon rec-
ommendation of the members appointed under para-
graphs (1) through (4).
(c) PREREQUISITES RELATING
TO CERTAIN AP-
POINTMENTS.—(1) Of the members of the Commission ap-
pointed under subsection (b)(3)—
(A) one shall be a member of one of the two
largest labor unions at the Library of Congress; and
(B) one shall be a manager at the Library of
Congress.
(2) Of the members of the Commission appointed
under subsection (b)(4)—
(A) one shall be a member of one of the two
largest labor unions at the Library of Congress; and
(B) one shall be a manager at the Library of
Congress.
(3) The member appointed under paragraph (1)(A)
shall not be from the same labor union as the member
appointed under paragraph (2)(A).
(d) REMOVAL.—The person making an appointment
may remove a member of the Commission for neglect of
duty or malfeasance in office.
(e) VACANCIES.—A vacancy in the Commission shall
be filled in the manner in which the original appointment
is made.
(f) CHAIRMAN; VICE CHAIRMAN.—The Commission
shall elect a chairman and a vice chairman from among
its members. The chairman and vice chairman shall not
be of the same political party.
(g) QUORUM.—Seven members of the Commission
shall constitute a quorum for the transaction of business,
but the Commission may establish a lesser number for
holding hearings, taking testimony, and receiving evi-
dence.
(h) COMMENCEMENT
OF OPERATIONS.—Members
shall be appointed and the Commission shall commence
operation not later than four weeks after the date on
which this subtitle is agreed to.
SEC. 13003. FUNCTIONS OF COMMISSION.
(a) IN GENERAL.—The Commission shall—
(1) employ a nongovernmental consultant with
expertise in job evaluation to study and compare the
compensation paid within and between job classifica-
tions in the Library of Congress and to analyze per-
sonnel policies and practices in the Library of Con-
gress;
(2) evaluate the compensation system and per-
sonnel policies and practices in the Library of Con-
gress for compliance with title VII of the Civil
Rights Act of 1964 and make specific recommenda-
tions (other than any recommendation that, if imple-
mented, would result in a reduction in the rate of
pay payable for any position) to the Congress for
such action as may be necessary to achieve that
compliance;
(3) develop a comprehensive plan for applica-
tion of the principles of title VII of the Civil Rights
Act of 1964 throughout the legislative branch; and
(4) make specific recommendations (other than
any recommendation that, if implemented, would re-
sult in a reduction in the rate of pay payable for any
position) to the Congress for improvement of person-
nel policies and practices in the legislative branch
that may be necessary to carry out the policy de-
clared in section 13001.
(b) SPECIFIC REQUIREMENT RELATING
TO
THE
CONSULTANT.—In carrying out the requirements of para-
graph (1) of subsection (a), the consultant employed under
such paragraph shall use standard objective job-evaluation
techniques to determine whether the compensation system
at the Library of Congress is in compliance with the policy
objectives in section 13001.
SEC. 13004. STAFF OF COMMISSION.
(a) STAFF DIRECTOR.—The Commission shall have
a staff director who shall be appointed by the chairman
and who shall be paid at a rate not to exceed the maximum
rate of basic pay payable under the General Schedule (as
determined under section 5376 of title 5, United States
Code).
(b) ADDITIONAL STAFF.—With the approval of the
Commission, the chairman may appoint, terminate, and
fix the pay of additional staff. Any person so appointed
may be paid at a rate not to exceed the maximum rate
of basic pay payable for grade GS–15 of the General
Schedule, under section 5332 of title 5, United States
Code.
SEC. 13005. COMPENSATION OF MEMBERS.
(a) PROHIBITION OF COMPENSATION OF CERTAIN
MEMBERS.—A member of the Commission who is a Mem-
ber of Congress or a full-time officer or employee of the
United States shall receive no additional pay by reason
of service on the Commission.
(b) COMPENSATION
OF OTHER MEMBERS.—Any
other member of the Commission shall be paid at a rate
equal to the daily equivalent of the maximum annual rate
of basic pay payable under the General Schedule (as deter-
mined under section 5376 of title 5, United States Code)
for each day, including travel time, such member is en-
gaged in the performance of duties of the Commission.
SEC. 13006. POWERS OF COMMISSION.
The Commission may hold hearings, take testimony,
receive evidence, administer oaths or affirmations to wit-
nesses appearing before it, and authorize any member or
agent of the Commission to exercise such powers.
SEC. 13007. REPORTS AND TERMINATION OF COMMISSION.
The Commission may submit interim reports to the
Congress and shall submit a final report to the Congress
not later than 18 months after the date on which this sub-
title is agreed to. The Commission shall cease to exist thir-
ty days after submitting the final report.
SEC. 13008. ADMINISTRATIVE PROVISIONS.
(a) FUNDING.—There shall be paid from the applica-
ble accounts of the House of Representatives and from
the contingent fund of the Senate such sums as may be
necessary to carry out this subtitle. One-half of the total
of such sums shall be paid from each such source. Pay-
ment shall be upon vouchers submitted by the chairman
of the Commission and approved by the Committee on
House Oversight of the House of Representatives or the
Committee on Rules and Administration of the Senate, as
appropriate.
(b) STATUS OF MEMBERS AND STAFF.—Members of
the Commission (other than Members of Congress) and
the staff of the Commission shall be treated as detailed
employees, or as temporary or intermittent employees of
the House or of the Senate, as appropriate.
(c) REGULATIONS.—The Committee on House Over-
sight of the House of Representatives and the Committee
on Rules and Administration of the Senate, acting jointly,
shall prescribe such regulations as may be necessary to
carry out this subtitle. Employment of experts and con-
sultants, travel, procurement of support services, proce-
dures for securing information, and other administrative
matters with respect to the Commission shall be in accord-
ance with such regulations.
Subtitle D—Sexual Harassment
Prevention
SEC. 14001. CIVIL ACTION.
(a) GENERALLY.—Whoever (including a govern-
mental entity), in or affecting interstate or foreign com-
merce—
(1) engages in any sexual harassment; or
(2) retaliates against any person for opposing
sexual harassment or filing a complaint, or otherwise
participating in any manner, in a civil action under
paragraph (1);
shall be liable to the person injured by that harassment
or retaliation for any appropriate relief, which may include
money damages. In a civil action under this section, the
court may award a prevailing plaintiff a reasonable attor-
neys’ fee and other litigation expenses (including expert
witness fees) as a part of the costs.
(b) WHAT CONSTITUTES SEXUAL HARASSMENT.—
(1) GENERALLY.—As used in this section, the
term ‘‘sexual harassment’’ means conduct described
in paragraph (2) in a relationship described in para-
graph (3).
(2) CONDUCT.—The conduct referred to in
paragraph (1) is an unwelcome sexual advance, un-
welcome request for sexual favors, or other unwel-
come conduct of a sexual nature where—
(A) submission to such conduct is either
explicitly or implicitly a term or condition of the
relationship described in paragraph (3);
(B) submission to or rejection of such con-
duct is the basis for decisions or actions regard-
ing the person who submitted to or rejected
that conduct; or
(C) such conduct has the purpose or effect
of unreasonably interfering with the relation-
ship described in paragraph (3) or creates an
intimidating, hostile, or offensive environment
within that relationship.
(3) RELATIONSHIP.—The relationship referred
to in paragraphs (1) and (2) is a relationship—
(A) between a patient and a physician,
psychotherapist, or dentist;
(B) between a client and an attorney, mar-
riage, family, or child counselor, social worker,
or accountant;
(C) between a beneficiary and an executor,
trustee, or administrator of a trust or estate;
(D) between an employee and an employer,
if the employer has fewer than 15 employees for
each working day in each of 33 or more cal-
endar weeks in the current and in the preceding
calendar year; or
(E) between the parties to a contract or
between persons negotiating a contract or seek-
ing to enforce claimed rights under a contract.
(c) EFFECTIVE DATE.—This subtitle shall take effect
180 days after the date of the enactment of this subtitle.
SEC. 14002. ADDITIONAL FUNDING FOR THE EQUAL EM-
PLOYMENT OPPORTUNITY COMMISSION.
In addition to any other sums authorized to be appro-
priated to the Equal Employment Opportunity Commis-
sion, there are authorized to be appropriated to such Com-
mission $268,000,000 for fiscal year 1997, and such sums
thereafter as may be necessary.
Subtitle E—Sexual Harassment
Information
SEC. 15001. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) Sexual harassment in employment persists
widely in the workplace, although it violates title VII
of the Civil Rights Act of 1964 and adversely affects
employees.
(2) According to guidelines issued by the Equal
Employment Opportunity Commission in 1980, the
most effective tool for eliminating sexual harassment
is prevention.
(3) The United States Merit Systems Protec-
tion Board found in 1981 and 1988 surveys of Fed-
eral Government employees that 42 percent of fe-
male employees and 14 percent of male employees
questioned had experienced some kind of harassment
in employment. The American Psychological Associa-
tion estimates that at least 1⁄2 of all working women
have been sexually harassed at the workplace during
their careers.
(4) The vast majority of sexual harassment epi-
sodes go unreported to a supervisory employee or
other individual designated by the employer. Only 5
percent of the Federal Government employees who
indicated in the 1988 Merit Systems Protection
Board survey that they had been harassed filed a
formal complaint or requested an investigation of
the harassment.
(5) Sexual harassment has a significant cost for
employees and employers. A 1988 study by Working
Woman Magazine shows that sexual harassment
costs a typical ‘‘Fortune 500’’ private employer
$6,000,000, or $292.53 per employee, each year.
The same study estimates that it is 34 times more
expensive for such an employer to ignore the prob-
lem than it is to establish effective programs and
policies to address the problem.
(6) Most job growth over the next decade is ex-
pected to occur in employment by small employers.
Sixty-six percent of the individuals who will enter
the work force during this period are expected to be
female. The establishment of programs and policies
in small-business environments, at a low cost to em-
ployers, will be a key prevention priority to reduce
sexual harassment in employment.
(b) PURPOSES.—The purposes of this subtitle are—
(1) to establish workplace requirements that
will reduce the incidence of sexual harassment in
employment,
(2) to provide a low-cost system to assist em-
ployers to establish programs and policies to prevent
sexual harassment in employment,
(3) to raise the awareness of employees of the
definition of sexual harassment and of available ave-
nues of redress, and
(4) to increase the authority and capacity of the
Equal Employment Opportunity Commission to as-
sist in preventing sexual harassment in employment.
SEC. 15002. EMPLOYER REQUIREMENTS.
(a) POSTING
OF NOTICE
IN
THE WORKPLACE.—
Each employer shall post and keep posted in conspicuous
places upon its premises where notices to employees and
applicants for employment are customarily posted, a no-
tice that shall be prepared or approved by the Commission
and shall set forth—
(1) the definition of sexual harassment found in
section 1604.11(a) of title 29 of the Code of Federal
Regulations (July 1, 1992),
(2) the fact that sexual harassment in employ-
ment is a violation of title VII of the Civil Rights
Act of 1964,
(3) information describing how to file a claim
alleging such harassment, including information on
the time periods within which an alleged victim of
discrimination (including sexual harassment) must
file a claim in order to satisfy the applicable statute
of limitations applicable to such claim,
(4) an address, and the toll-free telephone num-
ber, to be used to contact the Commission regarding
such harassment or compliance with the require-
ments of this subtitle, and
(5) such other information as the Commission
may require.
(b) SEPARATE NOTICE
TO INDIVIDUAL EMPLOY-
EES.—Each employer shall provide annually to each em-
ployee separately a written notice that includes—
(1) the matters specified in paragraphs (1)
through (4) of subsection (a),
(2) a description of the procedures established
by such employer to resolve allegations of sexual
harassment in employment, and
(3) such other information as the Commission
may require.
Such notice shall be provided in a manner that ensures
that such employee actually receives such notice.
100
(c) MANAGEMENT INFORMATION FOR SUPERVISORY
EMPLOYEES.—Not later than 60 days after an employer
places an individual in a supervisory employment position
or 1 year after the date of the enactment of this subtitle,
whichever occurs later, such employer shall provide to the
supervisory employee information specifying the respon-
sibilities of, and the methods to be used by, such employee
to ensure that immediate and corrective action is taken
to address allegations of sexual harassment in employ-
ment.
(d) CIVIL PENALTY.—A willful violation of this sec-
tion shall be punishable by a civil penalty of not more than
$1,000 for each separate violation.
SEC. 15003. DUTIES OF THE COMMISSION.
(a) TECHNICAL ASSISTANCE MATERIALS.—Not later
than 180 days after the date of the enactment of this sub-
title, the Commission shall prepare, revise from time to
time as needed, and make available to employers at no
cost (by publication in the Federal Register or other
means)—
(1) a model notice of the kind required by sec-
tion 15002(a) to be posted,
(2) a model notice of the kind required by sec-
tion 15002(b) to be provided to employees, and
101
(3) voluntary guidelines for the establishment of
policies and procedures by employers to address alle-
gations of discrimination (including sexual harass-
ment) in employment.
(b) TOLL-FREE TELEPHONE NUMBER.—Not later
than 180 days after the date of the enactment of this sub-
title, the Commission shall provide a toll-free telephone
number for use by employees and employers in the United
States to obtain—
(1) information regarding compliance with this
subtitle, and
(2) the model notices and guidelines prepared
under subsection (a).
SEC. 15004. ENFORCEMENT.
Section 15002 shall be enforced—
(1) by the Commission with respect to viola-
tions alleged by employees as defined in subpara-
graphs (A), (B), and (C) of section 15005(2), and
(2) the Board of the Office of Compliance with
respect to violations alleged by employees as defined
in subparagraph (D) of section 15005(2).
SEC. 15005. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘Commission’’ means the Equal
Employment Opportunity Commission,
102
(2) the term ‘‘employee’’ means—
(A) an employee as defined in section
701(f) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(f)),
(B) an employee referred to in section
717(a) of such Act (42 U.S.C. 2000e–16(a)),
(C) an individual with respect to whom
section 302(a)(1) of the Government Employee
Rights Act of 1991 (2 U.S.C. 1202(a)(1)) ap-
plies, or
(D) a covered employee as defined in sec-
tion 101 of the Congressional Accountability
Act of 1995 (Public Law 104–1; 109 Stat. 3),
(3) the term ‘‘employer’’ means—
(A) an employer as defined in section
701(b) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(b)),
(B) a Federal entity to which section
717(a) of the Civil Rights Act of 1964 (42
U.S.C. 2000e–716(a)) applies,
(C) an employing authority to which sec-
tion 302(a)(1) of the Government Employee
Rights Act of 1991 (2 U.S.C. 1202(a)(1)) ap-
plies, or
103
(D) an employing authority to which sec-
tion 201(a) of the Congressional Accountability
Act of 1995 (Public Law 104–1; 109 Stat. 3)
applies, and
(4) the term ‘‘sexual harassment’’ has the same
meaning as such term has for purposes of title VII
of the Civil Rights Act of 1964 (42 U.S.C. 2000e–
2000e–17).
SEC. 15006. EFFECTIVE DATES.
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsection (b), this subtitle shall take effect on
the date of the enactment of this subtitle.
(b) EFFECTIVE DATE OF SECTION 15002.—Section
15002 shall take effect 1 year after the date of the enact-
ment of this subtitle.
Subtitle F—Sexual Harassment Tax
Equity
SEC. 16001. DEDUCTION FOR LEGAL EXPENSES OF INDIVID-
UALS BRINGING SEXUAL HARASSMENT SUITS
AGAINST THEIR EMPLOYERS.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended
by redesignating section 220 as section 221 and by insert-
ing after section 219 the following new section:
104
‘‘SEC. 220. LEGAL EXPENSES OF INDIVIDUALS BRINGING
SEXUAL HARASSMENT SUITS AGAINST THEIR
EMPLOYERS.
‘‘In the case of an individual, there shall be allowed
as a deduction the amount paid during the taxable year
for reasonable legal fees and related expenses (including
attorney’s fees) with respect to a sexual harassment suit
by such individual against an employer or former em-
ployer.’’
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES.—Subsection (a) of section 62 of such
Code is amended by inserting the following new paragraph
after paragraph (15):
‘‘(16) 
SEXUAL
HARASSMENT
SUIT
LEGAL
COSTS.—The deduction allowed by section 220.’’
(c) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by striking the item relating to section 220
and inserting the following new items:
‘‘Sec. 219. Legal expenses of individuals bringing sexual harass-
ment suits against their employers.
‘‘Sec. 220. Cross reference.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to suits filed after January 1,
1997.
105
Subtitle G—Equal Remedies
SEC. 17001. EQUALIZATION OF REMEDIES.
Section 1977A of the Revised Statutes, as added by
section 102 of the Civil Rights Act of 1991, is amended—
(1) in subsection (b)—
(A) by striking paragraph (3), and
(B) by redesignating paragraph (4) as
paragraph (3), and
(2) in subsection (c) by striking ‘‘section—’’
and all that follows through the period, and insert-
ing ‘‘section, any party may demand a jury trial.’’.
Subtitle H—Federal Temporary
Workers Protection
SEC. 18001. ELIGIBILITY FOR HEALTH BENEFITS.
(a) IN GENERAL.—Paragraph (4) of section 8913(b)
of title 5, United States Code, is amended to read as fol-
lows:
‘‘(4) an employee who is occupying a position
on a temporary basis, if such employee has, in the
aggregate, completed the equivalent of at least 1
year of service in such position within the preceding
2 years.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 8906a of title 5, United States Code, is re-
pealed.
106
(2) The table of sections for chapter 89 of title 5,
United States Code, is amended by striking the item relat-
ing to section 8906a.
SEC. 18002. EFFECTIVE DATE.
(a) IN GENERAL.—This subtitle and the amendments
made by this subtitle shall take effect on the date of the
enactment of this subtitle, and any change in contribu-
tions payable by or on behalf of an individual to the Em-
ployees Health Benefits Fund (described in section 8909
of title 5, United States Code) as a result of the enactment
of this subtitle shall take effect as of the first applicable
pay period beginning on or after such date.
(b) CREDITABILITY
OF PRIOR SERVICE.—Service
performed before the effective date of this subtitle may
be taken into account for purposes of the amendment
made by section 18001(a).
Subtitle I—Contingent Work Force
Equity
SEC. 19001. EQUAL PAY.
Section 6 of the Fair Labor Standards Act of 1938
(29 U.S.C. 206) is amended by adding at the end the fol-
lowing:
‘‘(g)(1) No employer having employees subject to any
provision of this section shall discriminate, within any es-
tablishment in which such employees are employed, be-
107
tween employees on the basis of employment status by
paying wages to part-time or temporary employees in such
establishment at a rate less than the rate at which the
employer pays wages to full-time employees in such estab-
lishment for equal work on jobs the performance of which
requires equal skill, effort, and responsibility and which
are performed under similar working conditions unless
such payment is made pursuant to—
‘‘(A) a seniority system;
‘‘(B) a merit system;
‘‘(C) a system that measures earnings by quan-
tity or quality of production; or
‘‘(D) a differential based on any other factor
other than employment status.
An employer who is paying a wage rate differential in vio-
lation of this paragraph shall not, in order to comply with
the requirements of this paragraph, reduce the wage rate
of any employee.
‘‘(2) No labor organization, or its agents, represent-
ing employees of an employer having employees subject to
any provision of this section shall cause or attempt to
cause such an employer to discriminate against an em-
ployee in violation of paragraph (1).
‘‘(3) For purposes of administration and enforcement
of paragraph (1), any amount owing to any employee that
108
has been withheld in violation of paragraph (1) shall be
deemed to be unpaid minimum wages under subsection (a)
or unpaid overtime compensation under section 7.
‘‘(4) As used in paragraph (2), the term ‘labor orga-
nization’ means any organization of any kind, or any agen-
cy or employee representation committee or plan, in which
employees participate and which exists for the purpose,
in whole or in part, of dealing with employers concerning
grievances, labor disputes, wages, rates of pay, hours of
employment, or conditions of work.’’.
SEC. 19002. OCCUPATIONAL SAFETY AND HEALTH.
(a) AMENDMENT.—Section 5(a)(1) of the Occupa-
tional Safety and Health Act of 1970 (29 U.S.C.
654(a)(1)) is amended to read as follows:
‘‘(1) shall furnish employment and a place of
employment that are free from recognized hazards
that are causing or are likely to cause death or seri-
ous physical harm to the employees of the employer
or to individuals who are employed by another em-
ployer and are performing services at such place of
employment;’’.
(b) STUDY.—The Secretary of Labor shall conduct
a study to determine if the health and safety of part-time
or temporary employees are being adequately monitored
109
and, if the monitoring is not adequate, to determine how
such monitoring can be made adequate.
SEC. 19003. FAMILY AND MEDICAL LEAVE.
(a) FAMILY
AND MEDICAL LEAVE ACT.—Section
101(2)(A) of the Family and Medical Leave Act (29
U.S.C. 2611(2)(A)) is amended—
(1) by striking ‘‘at least 12 months’’ and insert-
ing ‘‘at least 3 months’’; and
(2) by striking ‘‘at least 1,250 hours of service
with such employer during the previous 12-month
period’’ and inserting ‘‘at least 125 hours of service
with such employer during the previous 3-month pe-
riod’’.
(b) FEDERAL EMPLOYEES.—Section 6381(1)(B) of
title 5, United States Code, is amended by striking ‘‘12
months’’ and inserting ‘‘3 months’’.
(c) 
CONGRESSIONAL
EMPLOYEES.—Section
202(a)(2)(B) of the Congressional Accountability Act of
1995 is amended—
(1) by striking ‘‘for 12 months’’ and inserting
‘‘for 3 months’’; and
(2) by striking ‘‘at least 1,250 hours of
employement during the previous 12 months’’ and
inserting ‘‘at least 125 hours of employment during
the previous 3-month period’’.
110
SEC. 19004. CONTINGENT WORKFORCE SURVEY.
The Secretary of Labor, acting through the Commis-
sioner of the Bureau of Labor Statistics, shall establish
and carry out an annual survey identifying—
(1) the characteristics of temporary workers in
the United States;
(2) the relationship between such workers and
the establishments at which such workers are tempo-
rarily employed; and
(3) where appropriate, the relationship between
such workers and their permanent employers.
SEC. 19005. COLLECTIVE BARGAINING RIGHTS.
Section 9(b) of the National Labor Relations Act (29
U.S.C. 195(b)) is amended—
(1) by striking ‘‘; or (2)’’ and inserting ‘‘2’’;
(2) by striking ‘‘or (3)’’ and inserting ‘‘; (3)’’;
and
(3) by inserting before the period the following:
‘‘; or (4) decide that an employee shall be excluded
from a unit otherwise appropriate for the purposes
of collective bargaining based on the employee’s
part-time or temporary status, if such employee (A)
has a reasonable expectation of continued employ-
ment; and (B) is employed by the employer on the
date on which eligibility for participation in a rep-
111
resentation election is determined and on the date of
the election.’’.
SEC. 19006. PROTECTION OF PART-TIME AND TEMPORARY
WORKERS.
(a) TREATMENT OF EMPLOYEES WORKING AT LESS
THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND
ACCRUAL RULES GOVERNING PENSION PLANS.—
(1) PARTICIPATION RULES.—
(A) IN
GENERAL.—Section 202(a)(3) of
the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1052(a)(3)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the 12-month
period referred to in subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
112
completion of 500 hours of service within such 12-month
period shall be treated as completion of 1,000 hours of
service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary shall prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) CONFORMING
AMENDMENT.—Section
204(b)(1)(E) 
of 
such 
Act 
(29 
U.S.C.
1054(b)(1)(E)) is amended by striking ‘‘section
202(a)(3)(A)’’ and inserting ‘‘subparagraphs
(A) and (E) of section 202(a)(3)’’.
(2) VESTING RULES.—
(A) IN
GENERAL.—Section 203(b)(2) of
such Act (29 U.S.C. 1053(b)(2)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
113
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such period shall
be treated as completion of 1,000 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary shall prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) 1-YEAR BREAKS IN SERVICE.—Section
203(b)(3) of such Act (29 U.S.C. 1053(b)(3))
is amended by adding at the end the following
new subparagraph:
‘‘(F)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
114
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 250 hours of service within such period shall
be treated as completion of 500 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary shall prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(3) ACCRUAL RULES.—Section 204(b)(4)(C) of
such Act (29 U.S.C. 1054(b)(4)(C)) is amended—
(A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
(B) by adding at the end the following new
clauses:
‘‘(ii) For purposes of this subparagraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to clause (i)—
116
‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP
HEALTH PLANS
‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em-
ployer-provided premium under a group health plan with
respect to any employee for any period of coverage solely
because the employee’s customary employment is less than
full-time may be provided under such plan only if the em-
ployee is described in subsection (b) and only to the extent
permitted under subsection (c).
‘‘(b) REDUCTIONS
APPLICABLE
TO
EMPLOYEES
WORKING LESS THAN FULL-TIME.—
‘‘(1) IN GENERAL.—An employee is described in
this subsection if such employee, as of the beginning
of the period of coverage referred to in subsection
(a)—
‘‘(A) has customarily completed less than
30 hours of service per week, or
‘‘(B) is employed in a type of position in
which employment customarily constitutes less
than 30 hours of service per week.
‘‘(2) REGULATIONS.—For purposes of para-
graph (1), whether employment in any type of posi-
tion customarily constitutes less than 30 hours of
service per week shall be determined with respect to
each group health plan in accordance with such reg-
117
ulations as the Secretary shall prescribe providing
for consideration of facts and circumstances peculiar
to the work-force constituting the participants in
such plan.
‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The
employer-provided premium under a group health plan
with respect to any employee for any period of coverage,
after the reduction permitted under subsection (a), shall
not be less than a ratable portion of the employer-provided
premium which would be provided under such plan for
such period of coverage with respect to an employee who
completes 30 hours of service per week.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) GROUP HEALTH PLAN.—The term ‘group
health plan’ has the meaning provided such term in
section 607(1).
‘‘(2) EMPLOYER-PROVIDED PREMIUM.—
‘‘(A) IN GENERAL.—The term ‘employer-
provided premium’ under a plan for any period
of coverage means the portion of the applicable
premium under the plan for such period of cov-
erage which is attributable under the plan to
employer contributions.
‘‘(B) APPLICABLE
PREMIUM.—For pur-
poses of subparagraph (A), in determining the
118
applicable premium of a group health plan,
principles similar to the principles applicable
under section 604 shall apply.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 201(1) of such Act (29 U.S.C.
1051(1)) is amended by inserting ‘‘, except with
respect to section 211’’ before the semicolon.
(B) The table of contents in section 1 of
such Act is amended by striking the item relat-
ing to section 211 and inserting the following
new items:
‘‘Sec. 211. Treatment of part-time workers under group health plans.
‘‘Sec. 212. Effective date.’’.
(c) EXPANSION OF DEFINITION OF EMPLOYEE TO
INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE
LEASED OR CONTRACTED FOR.—Paragraph (6) of section
3 of such Act (29 U.S.C. 1002(6)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) Such term includes, with respect to any em-
ployer, any person who is not an employee (within the
meaning of subparagraph (A)) of such employer and who
provides services to such employer, if—
‘‘(i) such person has (pursuant to an agreement
with such employer or any other person) performed
119
such services for such employer (or for such em-
ployer and related persons (within the meaning of
section 144(a)(3) of the Internal Revenue Code of
1986)) for a period of at least 1 year (6 months in
the case of core health benefits) at the rate of at
least 500 hours of service per year, and
‘‘(ii) such services are of a type historically per-
formed, in the business field of the employer, by em-
ployees (within the meaning of subparagraph (A)).’’.
(d) EFFECTIVE DATES.
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply with respect to plan years beginning on
or after January 1, 1997.
(2) SPECIAL
RULE
FOR
COLLECTIVELY
BAR-
GAINED PLANS.—In the case of a plan maintained
pursuant to 1 or more collective bargaining agree-
ments between employee representatives and 1 or
more employers ratified on or before the date of the
enactment of this subtitle, paragraph (1) shall be
applied to benefits pursuant to, and individuals cov-
ered by, any such agreement by substituting for
‘‘January 1, 1997’’ the date of the commencement
of the first plan year beginning on or after the ear-
lier of—
120
(A) the later of—
(i) January 1, 1997, or
(ii) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof after the date of the en-
actment of this subtitle), or
(B) January 1, 1999.
(3) PLAN
AMENDMENTS.—If any amendment
made by this section requires an amendment to any
plan, such plan amendment shall not be required to
be made before the first plan year beginning on or
after January 1, 1998, if—
(A) during the period after such amend-
ment made by this section takes effect and be-
fore such first plan year, the plan is operated
in accordance with the requirements of such
amendment made by this section, and
(B) such plan amendment applies retro-
actively to the period after such amendment
made by this section takes effect and such first
plan year.
A plan shall not be treated as failing to provide defi-
nitely determinable benefits or contributions, or to
be operated in accordance with the provisions of the
121
plan, merely because it operates in accordance with
this paragraph.
SEC. 19007. UNEMPLOYMENT COMPENSATION.
(a) PART-TIME EMPLOYEES; INDEPENDENT CON-
TRACTORS.—Subsection (a) of section 3304 of the Inter-
nal Revenue Code of 1986 (relating to requirements for
approval of State unemployment compensation laws) is
amended by striking ‘‘and’’ at the end of paragraph (17),
by redesignating paragraph (18) as paragraph (20), and
by inserting after paragraph (17) the following new para-
graphs:
‘‘(18) in applying the State law provisions relat-
ing to availability for work, active search for work,
or refusal to accept work, to an individual seeking
part-time employment, the term ‘suitable work’ shall
not include any work where the individual would
normally perform services for more hours per week
than the number of hours per week for which the in-
dividual is available if the individual demonstrates
good cause for the individual’s limited availability
and such limitation does not substantially impair the
individual’s current attachment to the labor force;
‘‘(19) the determination of whether an individ-
ual is an employee of another person shall be made
in accordance with section 3306(i); and’’.
122
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect on January 1, 1997.
(2) SPECIAL RULE.—In the case of any State
the legislature of which has not been in session for
at least 30 calendar days (whether or not successive)
between the date of the enactment of this subtitle
and January 1, 1997, the amendments made by this
section shall take effect 30 calendar days after the
1st day on which such legislature is in session on or
after January 1, 1998.
TITLE II—ECONOMIC
OPPORTUNITY
Subtitle A—Microenterprise
Opportunity Expansion
SEC. 21001. PUBLIC ASSISTANCE PROVISIONS.
(a) BUSINESS ASSETS EXCLUDED FROM RESOURCES
AND INCOME.—
(1) AFDC.—
(A) EXCLUSION FROM RESOURCES.—Sec-
tion 402(a)(7)(B) of the Social Security Act
(42 U.S.C. 602(a)(8)(A)) is amended—
(i) by striking ‘‘or’’ at the end of
clause (iii); and
123
(ii) by inserting before the semicolon
the following: ‘‘, or (v) any asset of the
family which is primarily used for business
purposes in a business owned, in whole or
in part, by an individual eligible for aid
under any State plan approved under this
part; and’’.
(B) EXCLUSION
FROM
INCOME.—Section
402(a)(8)(A) 
of 
such 
Act 
(42 
U.S.C.
602(a)(8)(A)) is amended—
(i) by striking ‘‘and’’ at the end of
clause (vii); and
(ii) by inserting after clause (viii) the
following:
‘‘(ix) shall disregard from the income of
any child, relative, or other individual specified
in clause (ii) any asset which is primarily used
for business purposes in a business owned, in
whole or in part, by an individual eligible for
aid under any State plan approved under this
part; and’’.
(2) SSI.—
(A) EXCLUSION
FROM
INCOME.—Section
1612(b) of such Act (42 U.S.C. 1382a(b)) is
amended—
124
(i) by striking ‘‘and’’ at the end of
paragraph (17);
(ii) in paragraph (18), by striking the
period and inserting ‘‘; and’’; and
(iii) by adding at the end the follow-
ing:
‘‘(19) any asset of such individual (or such
spouse) which is primarily used for business pur-
poses in a business owned, in whole or in part, by
an individual eligible for aid under any State plan
approved under part A of title IV.’’.
(B) EXCLUSION FROM RESOURCES.—Sec-
tion 1613(a) of such Act (42 U.S.C. 1382b(a))
is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (9);
(ii) in paragraph (10), by striking the
period and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (10)
the following:
‘‘(11) any asset of (including any amount re-
ceived as a loan by) such individual (or such spouse)
which is primarily used for business purposes in a
business owned, in whole or in part, by an individual
125
eligible for aid under any State plan approved under
part A of title IV.’’.
(b) PUBLIC ASSISTANCE BENEFITS EXTENDED FOR
PERSONS WITH INCOME FROM
OR RESOURCES IN A
MICROENTERPRISE.—
(1) AFDC AND MEDICAID.—Section 402(a) of
such Act (42 U.S.C. 602(a)) is amended by inserting
after paragraph (28) the following:
‘‘(29) notwithstanding paragraphs (7) and (8),
provide that, during the 2-year period beginning on
the first day any member of a family eligible for
benefits under the State plan sells any good or serv-
ice as part of operating a commercial enterprise with
5 or fewer employees, which is owned in whole or in
part by such family member, all income of such fam-
ily member attributable to the enterprise and all re-
sources in which such family member has a bene-
ficial interest used primarily in the enterprise shall
be disregarded in determining the amount of aid to
which the family is entitled under the State plan;’’.
(2) SSI AND MEDICAID.—
(A) EXCLUSION
FROM
INCOME.—Section
1612(b) of such Act (42 U.S.C. 1382a(b)), as
amended by subsection (a)(2)(A) of this section,
is amended—
126
(i) by striking ‘‘and’’ at the end of
paragraph (18);
(ii) in paragraph (19), by striking the
period and inserting ‘‘; and’’; and
(iii) by adding at the end the follow-
ing:
‘‘(20) during the 2-year period beginning on the
first day such individual (or such spouse) sells any
good or service as part of operating a commercial
enterprise with 5 or fewer employees, which is owned
in whole or in part by such individual (or such
spouse), all income of such individual (or such
spouse) attributable to the enterprise.’’.
(B) EXCLUSION FROM RESOURCES.—Sec-
tion 1613(a) of such Act (42 U.S.C. 1382b(a)),
as amended by subsection (a)(2)(B) of this sec-
tion, is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (10);
(ii) in paragraph (11), by striking the
period and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (11)
the following:
‘‘(12) during the 2-year period beginning on the
first day such individual (or such spouse) sells any
127
good or service as part of operating a commercial
enterprise with 5 or fewer employees, which is owned
in whole or in part by such individual (or such
spouse), all resources of such individual (or such
spouse) that are used primarily in the enterprise.’’.
SEC. 21002. UNEMPLOYMENT COMPENSATION FOR INDIVID-
UALS STARTING MICROENTERPRISES.
(a) STATE LAW REQUIREMENTS.—Subsection (a) of
section 3304 of the Internal Revenue Code of 1986 (relat-
ing to State law requirements) is amended by striking
‘‘and’’ at the end of paragraph (17), by redesignating
paragraph (18) as paragraph (19), and by inserting after
paragraph (17) the following new paragraph:
‘‘(18) compensation shall be payable to individ-
uals starting microenterprises as provided in section
3(b) of the Act for microenterprises; and’’.
(b) PAYMENT OF COMPENSATION TO INDIVIDUALS
STARTING MICROENTERPRISES.—
(1) IN
GENERAL.—For purposes of section
3304(a)(18) of the Internal Revenue Code of 1986,
a State law shall provide that—
(A) each individual who is an eligible indi-
vidual with respect to any benefit year shall be
entitled to receive regular or extended unem-
ployment compensation, as the case may be,
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without regard to any State or Federal require-
ments relating to availability for work, active
search for work, or refusal to accept suitable
work, and
(B) such individual shall be considered to
be unemployed for purposes of the State and
Federal laws applicable to unemployment com-
pensation, as long as the individual is actively
involved in the ownership and operation of a
microenterprise or the preparation of a business
plan for the ownership and operation of a
microenterprise and is receiving guidance or
consultation in starting up or operating a
microenterprise from an experienced entre-
preneur or provider of technical business assist-
ance.
(2) AUTHORIZATION
FOR
USING
UNEMPLOY-
MENT FUNDS TO PROVIDE STARTUP ASSISTANCE.—
Nothing in section 3304(a)(4) or 3306(f) of the In-
ternal Revenue Code of 1986 or section 303(a)(5) of
the Social Security Act shall prevent amounts in a
State unemployment fund from being used to pro-
vide assistance to eligible individuals in starting
microenterprises. The amount of assistance so pro-
vided may be in the form of a lump sum and shall
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be in lieu of the periodic payments of compensation
to which the individual would otherwise have been
entitled and shall not exceed the aggregate amount
of compensation to which the individual would other-
wise have been so entitled.
(3) DEFINITIONS.—For purposes of this sec-
tion—
(A) ELIGIBLE INDIVIDUAL.—The term ‘‘el-
igible individual’’ means, with respect to any
benefit year, an individual who—
(i) is eligible to receive regular or ex-
tended compensation under the State law
during such benefit year,
(ii) is starting a microenterprise in
which the individual will have an ownership
interest, and
(iii) submits a request to the State
agency for compensation under this sub-
section.
(B) 
MICROENTERPRISE.—The 
term
‘‘microenterprise’’ means any unincorporated
trade or business with 5 or fewer employees, 1
or more of whom own the enterprise.
(C) OTHER
TERMS.—The terms ‘‘com-
pensation’’, ‘‘extended compensation’’, ‘‘regular
130
compensation’’, ‘‘benefit year’’, ‘‘State’’, and
‘‘State law’’ have the respective meanings given
to such terms under section 205 of the Federal-
State Extended Unemployment Compensation
Act of 1970.
SEC. 21003. TREATMENT OF MICROENTERPRISE LOANS
AND GRANTS BY INSURED DEPOSITORY IN-
STITUTIONS AS COMMUNITY REINVESTMENT.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsections:
‘‘(c) MICROENTERPRISE LOANS.—
‘‘(1) TREATMENT
OF
LOANS
AND
GRANTS.—
The following amounts shall be treated as an invest-
ment in a regulated financial institution’s commu-
nity for purposes of subsection (a):
‘‘(A) The amount of any loan described in
paragraph (2)(A) made by the regulated finan-
cial institution directly to a microenterprise, if
the loan is made in accordance with the require-
ments of subsection (c).
‘‘(B) The amount of any grant or donation
made by the regulated financial institution to
any microenterprise intermediary to meet oper-
ating costs of the intermediary, including the
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costs associated with training, technical assist-
ance, and other support services provided by
the intermediary to microenterprises.
‘‘(C) The amount of any regulated finan-
cial institution’s investment in a revolving fund
established by the institution for loans to micro-
enterprise intermediaries for lending to micro-
enterprises if—
‘‘(i) the amount of the investment in
the revolving fund is equal to or greater
than the amount which is equal to 0.05
percent of the assets of the institution;
‘‘(ii) the regulated financial institu-
tion—
‘‘(I) makes grants or donations
described in subparagraph (B) to
microenterprise 
intermediaries 
the
total amount of which equals or ex-
ceeds the amount which is equal to 15
percent of the amount required to be
invested in the revolving fund under
clause (i); or
‘‘(II) provides financial services,
including the establishment and main-
tenance of a transaction account, for
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a microenterprise (or any individual
who controls the microenterprise) who
receives a microenterprise loan from a
microenterprise intermediary, at pref-
erential or reduced rates which are at
least as favorable to the microenter-
prise as the rates offered for such
services to the institution’s most pre-
ferred commercial customers; and
‘‘(iii) loans from the revolving fund
may be made only to microenterprise
intermediaries who agree to use the pro-
ceeds of the loan to make microenterprise
loans in accordance with the requirements
of subsection (d).
‘‘(2) MICROENTERPRISE LOAN.—For purposes
of this subsection and subsection (d), the term
‘microenterprise loan’—
‘‘(A) means a loan—
‘‘(i) to a commercial enterprise with 5
or fewer employees, 1 or more of whom
own the enterprise;
‘‘(ii) in amounts not less than $100
and not more than $10,000;
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‘‘(iii) the interest rate on which is
comparable to the interest rate charged on
secured commercial loans offered by the
regulated financial institution to the insti-
tution’s most preferred commercial cus-
tomers;
‘‘(iv) which—
‘‘(I) is not secured by collateral;
or
‘‘(II) is secured by collateral the
value of which, as a percentage of the
amount of the loan, is substantially
less than the percentage generally re-
quired by the institution for commer-
cial loans; and
‘‘(v) the terms of which may permit
the deferral of principal or interest pay-
ments otherwise due under such terms;
and
‘‘(B) includes a loan to a microenterprise
intermediary the proceeds of which will be used
by the intermediary for making loans described
in subparagraph (A).
‘‘(d) CRITERIA FOR MICROENTERPRISE LOANS.—