National Signing Bonus Act of 2021
Bill: H.R.3495 | Sponsor: Rep. Gallagher, Mike (R-WI)
Policy area: Labor and Employment

Summary:
National Signing Bonus Act of 2021
This bill replaces existing Federal Pandemic Unemployment Compensation payments for unemployed individuals with two-time signing bonuses for newly employed individuals.
Specifically, the bill allows states to provide up to two direct payments to individuals who are eligible for Federal Pandemic Unemployment Compensation prior to commencing employment with a new employer. The individual must continue employment with the new employer for at least four weeks before July 4, 2021, to be eligible for the first $1,212 payment under the bill and for at least eight weeks before July 4, 2021, to be eligible for the final $1,212 payment.
The bill otherwise eliminates federal reimbursement for Federal Pandemic Unemployment Compensation payments.

To support both workers and recovery by converting expanded Federal 
              unemployment payments into signing bonuses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Signing Bonus Act of 
2021''.

SEC. 2. NATIONAL SIGNING BONUSES.

    (a) In General.--Section 2104(b) of the CARES Act (15 U.S.C. 
9023(b)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Back-to-work bonuses.--
                    ``(A) In general.--Any agreement under this section 
                may also provide that the State agency of the State may 
                make up to 2 lump-sum payments (in this paragraph 
                referred to as the `first lump-sum payment' and the 
                `second lump-sum payment') to each individual who--
                            ``(i) was eligible for Federal Pandemic 
                        Unemployment Compensation under paragraph (1) 
                        for--
                                    ``(I) any week beginning after the 
                                date of enactment of the National 
                                Signing Bonus Act of 2021; and
                                    ``(II) at least the 8 weeks 
                                immediately preceding the week under 
                                subclause (I);
                            ``(ii) is no longer eligible for Federal 
                        Pandemic Unemployment Compensation under 
                        paragraph (1) (as determined by the State), as 
                        a result of earnings due to commencing 
                        employment with an employer by whom the 
                        individual has not been employed during the 
                        preceding 6 months; and
                            ``(iii) as verified by the individual's 
                        employer pursuant to subparagraph (E)--
                                    ``(I) has been employed by a non-
                                governmental employer throughout--
                                            ``(aa) in the case of the 
                                        first lump-sum payment, the 
                                        individual's first qualifying 
                                        period; and
                                            ``(bb) in the case of the 
                                        second lump-sum payment, the 
                                        individual's second qualifying 
                                        period; and
                                    ``(II) remains employed with an 
                                intent to continue such employment.
                    ``(B) Amount.--
                            ``(i) First lump-sum payment.--With respect 
                        to the first qualifying period, a payment made 
                        to an individual under this paragraph shall be 
                        paid in a lump sum amount of $1,212.
                            ``(ii) Second lump-sum payment.--With 
                        respect to the second qualifying period, a 
                        payment made to an individual under this 
                        paragraph shall be paid in a lump sum amount of 
                        $1,212.
                    ``(C) Qualifying periods.--
                            ``(i) First qualifying period.--For 
                        purposes of this paragraph, the term `first 
                        qualifying period' means, with respect to an 
                        individual, a period--
                                    ``(I) beginning on the date the 
                                individual commenced employment as 
                                described in subparagraph (A)(ii); and
                                    ``(II) extending at least 4 
                                consecutive weeks from such date.
                            ``(ii) Second qualifying period.--For 
                        purposes of this paragraph, the term `second 
                        qualifying period' means, with respect to an 
                        individual, a period--
                                    ``(I) beginning on the date the 
                                individual commenced employment as 
                                described in subparagraph (A)(ii) (with 
                                the same employer with whom the 
                                individual qualified for the first 
                                lump-sum payment under this paragraph); 
                                and
                                    ``(II) extending at least 8 
                                consecutive weeks from such date.
                    ``(D) Duration.--A first or second lump-sum payment 
                may not be made to any individual under this paragraph 
                with respect to a first or second qualifying period 
                beginning on or after July 4, 2021.
                    ``(E) Employer verification required for both lump-
                sum payments.--Before making the first and second lump-
                sum payment to an individual pursuant to this 
                paragraph, a State agency shall require verification 
                from the individual's employer--
                            ``(i) of the individual's employment 
                        status;
                            ``(ii) of the wages paid to the individual 
                        during the applicable qualifying period; and
                            ``(iii) of the hours worked by the 
                        individual during the applicable qualifying 
                        period.
                    ``(F) Limitation.--A State may not provide more 
                than one first lump-sum payment and one second lump-sum 
                payment under this paragraph to an individual.
                    ``(G) Special rule.--Payments made pursuant to an 
                agreement under this paragraph shall not be considered 
                to violate the withdrawal requirements of section 
                303(a)(5) of the Social Security Act (42 U.S.C. 
                503(a)(5)) or section 3304(a)(4) of the Internal 
                Revenue Code of 1986.''.
    (b) Conforming Amendments.--Section 2104 of the CARES Act (15 
U.S.C. 9023) is amended--
            (1) in subsections (d) and (f), by inserting ``, payments 
        under subsection (b)(4),'' after ``Federal Pandemic 
        Unemployment Compensation'' each place it appears; and
            (2) in subsection (g)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) the purposes of the preceding provisions of this 
        section, as such provisions apply with respect to payments 
        under subsection (b)(4), shall be applied with respect to 
        unemployment benefits described in subsection (i)(2) to the 
        same extent and in the same manner as if those benefits were 
        regular compensation.''.
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