Title: Stop Welfare for Any Large Monopoly Amassing Revenue from Taxpayers Act of 2018
Policy area: Finance and Financial Sector

Summary:
Stop Welfare for Any Large Monopoly Amassing Revenue from Taxpayers Act of 2018
This bill prohibits a large employer from purchasing its own stock if it (1) pays its employees less than $15 an hour, (2) does not provide its employees with specified paid sick leave, or (3) does not comply with a specified compensation ratio with respect to its executive officers and employees.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3640 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3640

    To prohibit certain large business entities from purchasing the 
securities of those entities on national securities exchanges, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2018

  Mr. Sanders introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To prohibit certain large business entities from purchasing the 
securities of those entities on national securities exchanges, and for 
                            other purposes.

    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 ``Stop Welfare for Any Large Monopoly 
Amassing Revenue from Taxpayers Act of 2018''.

SEC. 2. PROHIBITION.

    (a) In General.--A large employer that commits a violation 
described in subsection (b) may not purchase a security of the large 
employer on a national securities exchange during the fiscal year in 
which the large employer commits that violation.
    (b) Violations Described.--A violation described in this subsection 
is, with respect to a large employer, any of the following:
            (1) The large employer pays an employee of the large 
        employer wages, as such term is defined for purposes of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) except 
        excluding any amount of cash tips received in the course of 
        employment by an employee, at a rate that is less than $15 per 
        hour.
            (2) The large employer interferes with, restrains, or 
        denies the exercise of, or the attempt to exercise, any right 
        provided under subsection (c).
            (3) The compensation ratio with respect to the large 
        employer is in an amount that is more than 150.
    (c) Earned Paid Sick Time.--
            (1) Earning of paid sick time.--A large employer--
                    (A) shall provide each employee employed by the 
                large employer not less than 1 hour of earned paid sick 
                time for every 30 hours worked; and
                    (B) shall not be required to permit an employee to 
                earn, under this subsection, more than 56 hours of paid 
                sick time in a year, unless the large employer chooses 
                to set a higher limit.
            (2) Exempt employees.--
                    (A) In general.--Except as provided in paragraph 
                (3), for purposes of this subsection, an employee who 
                is exempt from overtime requirements under section 
                13(a)(1) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 213(a)(1)) shall be assumed to work 40 hours in 
                each workweek.
                    (B) Shorter normal workweek.--If the normal 
                workweek of an employee described in subparagraph (A) 
                is less than 40 hours, the employee shall earn paid 
                sick time based upon that normal workweek.
            (3) Dates for beginning to earn paid sick time and use.--
                    (A) In general.--An employee shall begin to earn 
                paid sick time under this subsection at the 
                commencement of the employment of the employee.
                    (B) Use.--An employee--
                            (i) shall be entitled to use paid sick time 
                        that the employee has earned beginning on the 
                        60th calendar day following commencement of the 
                        employment of the employee; and
                            (ii) after the 60th calendar day described 
                        in clause (i), may use the paid sick time of 
                        the employee as the time is earned.
                    (C) Discretion of employer.--A large employer may, 
                at the discretion of the large employer--
                            (i) loan paid sick time to an employee for 
                        use by such employee in advance of the employee 
                        earning such sick time as provided in this 
                        subsection; and
                            (ii) permit the use of paid sick time by an 
                        employee before the 60th day of employment of 
                        the employee.
            (4) Carryover.--
                    (A) In general.--Except as provided in subparagraph 
                (B), paid sick time earned under this subsection shall 
                carry over from one year to the next.
                    (B) Construction.--This subsection shall not be 
                construed to require a large employer to permit an 
                employee to earn more than 56 hours of earned paid sick 
                time at a given time.
            (5) Large employers with existing policies.--Any large 
        employer with a paid leave policy that makes available an 
        amount of paid leave that is sufficient to meet the 
        requirements of this subsection and that may be used for the 
        same purposes and under the same conditions as the purposes and 
        conditions described in section 3(13) shall not be required to 
        permit an employee to earn additional paid sick time under this 
        subsection.
            (6) Construction.--Nothing in this subsection shall be 
        construed as requiring financial or other reimbursement to an 
        employee from a large employer upon the employee's termination, 
        resignation, retirement, or other separation from employment 
        for earned paid sick time that has not been used.
            (7) Reinstatement.--If an employee is separated from 
        employment with a large employer and, not later than 1 year 
        after the date on which the employee is separated, is rehired 
        by the same large employer--
                    (A) the large employer shall reinstate the 
                previously earned paid sick time of the employee; and
                    (B) the employee shall be entitled to use the 
                earned paid sick time and earn additional paid sick 
                time at the recommencement of employment with the large 
                employer.
            (8) Prohibition.--A large employer may not require, as a 
        condition of providing paid sick time under this subsection, 
        that the employee involved search for or find a replacement 
        employee to cover the hours during which the employee is using 
        paid sick time.
    (d) Enforcement.--
            (1) In general.--With respect to a large employer that 
        makes a purchase that violates subsection (a)--
                    (A) the Commission may impose a civil penalty on 
                the large employer in an amount that is equal to the 
                amount paid by the large employer to make that 
                purchase; and
                    (B) an individual who is an executive officer of 
                the large employer on the date on which that purchase 
                is made may not serve as an executive officer of the 
                large employer, any successor of the large employer, or 
                any affiliate of the large employer--
                            (i) if the purchase is the first instance 
                        in which the large employer has violated 
                        subsection (a), during the 1-year period 
                        beginning on the date on which that purchase is 
                        made; and
                            (ii) if the purchase is not the first 
                        instance in which the large employer has 
                        violated subsection (a), at any time after the 
                        date on which that purchase is made.
            (2) Regulations.--Not later than 90 days after the date of 
        enactment of this Act, the Commission shall promulgate 
        regulations that instruct national securities exchanges and 
        large employers regarding how those entities shall comply with 
        the requirements of this Act.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Affiliate.--The term ``affiliate'' means, with respect 
        to a large employer--
                    (A) any incorporated or unincorporated business 
                association or trust that controls the large employer;
                    (B) any incorporated or unincorporated business 
                association or trust that is controlled by an entity 
                described in subparagraph (A); and
                    (C) any incorporated or unincorporated business 
                association or trust that is controlled by the large 
                employer.
            (2) Child.--The term ``child'' means a biological, foster, 
        or adopted child, a stepchild, a child of a domestic partner, a 
        legal ward, or a child of a person standing in loco parentis, 
        who is--
                    (A) younger than 18 years of age; or
                    (B) not younger than 18 years of age and incapable 
                of self-care because of a mental or physical 
                disability.
            (3) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.
            (4) Committed relationship.--The term ``committed 
        relationship''--
                    (A) means a relationship between 2 individuals, 
                each of whom is not younger than 18 years of age, in 
                which--
                            (i) each individual is the sole domestic 
                        partner of the other individual; and
                            (ii) both individuals share responsibility 
                        for a significant measure of each other's 
                        common welfare; and
                    (B) includes any relationship described in 
                subparagraph (A) between 2 individuals, including 
                individuals of the same sex, that is granted legal 
                recognition by a State, or a political subdivision of a 
                State, as a marriage or analogous relationship, 
                including a civil union or domestic partnership.
            (5) Compensation ratio.--The term ``compensation ratio'' 
        means, with respect to a large employer in a fiscal year, the 
        quotient obtained by dividing, for that fiscal year--
                    (A) as submitted by the large employer under 
                section 229.402(c) of title 17, Code of Federal 
                Regulations, or any successor regulation, the greater 
                of the compensation of--
                            (i) the chief executive officer of the 
                        large employer; or
                            (ii) the most highly compensated employee 
                        of the large employer; by
                    (B) the median of all wages (not including any 
                amount of cash tips received in the course of 
                employment by an employee), paid to all employees of 
                the large employer who are employed in the United 
                States.
            (6) Dating violence.--The term ``dating violence'' has the 
        meaning given the term in section 40002(a) of the Violence 
        Against Women Act of 1994 (34 U.S.C. 12291(a)).
            (7) Domestic partner.--The term ``domestic partner'' means, 
        with respect to an individual, another individual with whom the 
        individual is in a committed relationship.
            (8) Domestic violence.--The term ``domestic violence''--
                    (A) has the meaning given the term in section 
                40002(a) of the Violence Against Women Act of 1994 (34 
                U.S.C. 12291(a)), except that the reference in that 
                section to the term ``jurisdiction receiving grant 
                monies'' shall be deemed to mean the jurisdiction in 
                which the victim lives or the jurisdiction in which the 
                employer involved is located; and
                    (B) includes dating violence.
            (9) Employee.--The term ``employee'' means--
                    (A) any full-time or part-time employee;
                    (B) any individual who is a full-time or part-time 
                independent contractor (including any employee of that 
                independent contractor) and provides services to an 
                employer, unless--
                            (i) the individual is free from control and 
                        direction in connection with the performance of 
                        the service, both under the contract for the 
                        performance of service and in fact;
                            (ii) the service is performed outside the 
                        usual course of the business of the employer; 
                        and
                            (iii) the individual is customarily engaged 
                        in an independently established trade, 
                        occupation, profession, or business of the same 
                        nature as that involved in the service 
                        performed; and
                    (C) any individual who is a full-time or part-time 
                joint employee, provided that the employer possesses, 
                reserves, or exercises sufficient direct or indirect 
                control over the essential terms and conditions of 
                employment of the employee.
            (10) Executive officer.--The term ``executive officer'', 
        with respect to a large employer--
                    (A) means any individual who participates, or has 
                authority to participate (other than in the capacity of 
                a director), in major policymaking functions of the 
                large employer, without regard to whether--
                            (i) the individual has an official title; 
                        or
                            (ii) the individual receives a salary or 
                        other compensation; and
                    (B) includes the chairman of the board of directors 
                of the large employer, the president of the large 
                employer, each vice president of the large employer, 
                and the chief financial officer of the large employer, 
                unless--
                            (i) a resolution of the board of directors 
                        of the large employer or the bylaws of the 
                        large employer explicitly exclude that 
                        individual from participation (other than in 
                        the capacity of a director) in major 
                        policymaking functions of the large employer; 
                        and
                            (ii) the individual does not participate in 
                        major policymaking functions of the large 
                        employer.
            (11) Large employer.--
                    (A) In general.--The term ``large employer'' means, 
                with respect to a fiscal year, an employer that--
                            (i) employed an average of not fewer than 
                        500 employees on business days during the 
                        preceding fiscal year; and
                            (ii) is subject to part 229 of title 17, 
                        Code of Federal Regulations, or any successor 
                        regulations, for that fiscal year.
                    (B) Rules for determining employer size.--For 
                purposes of this paragraph:
                            (i) Application of aggregation rule for 
                        employers.--All persons treated as a single 
                        employer under subsection (b), (c), (m), or (o) 
                        of section 414 of the Internal Revenue Code of 
                        1986 shall be treated as 1 employer.
                            (ii) Employers not in existence in 
                        preceding year.--In the case of an employer 
                        that was not in existence throughout the 
                        preceding fiscal year, the determination of 
                        whether the employer is a large employer shall 
                        be based on the average number of employees 
                        that the employer is reasonably expected to 
                        employ on business days in the current fiscal 
                        year.
                            (iii) Predecessors.--Any reference in this 
                        paragraph to an employer shall include a 
                        reference to any predecessor of the employer.
            (12) National securities exchange.--The term ``national 
        securities exchange'' means an exchange that is registered as a 
        national securities exchange under section 6 of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78f).
            (13) Paid sick time.--The term ``paid sick time'' means an 
        increment of compensated leave that can be earned by an 
        employee for use during an absence from employment for an 
        absence resulting from--
                    (A) a physical or mental illness, injury, or 
                medical condition of the employee or a related person 
                with respect to the employee;
                    (B) obtaining professional medical diagnosis or 
                care, or preventive medical care, for the employee or a 
                related person with respect to the employee;
                    (C) caring for--
                            (i) a related person with respect to the 
                        employee, who has any of the conditions or 
                        needs for diagnosis or care described in 
                        subparagraph (A) or (B);
                            (ii) a child, in a situation in which the 
                        employee is required to attend--
                                    (I) a school meeting; or
                                    (II) a meeting at a place where the 
                                child is receiving care necessitated by 
                                the health condition or disability of 
                                the child; or
                            (iii) a related person with respect to the 
                        employee, who is otherwise in need of care; or
                    (D) domestic violence, sexual assault, or stalking, 
                if the time is to--
                            (i) seek medical attention for the 
                        employee, or a related person with respect to 
                        the employee, to recover from physical or 
                        psychological injury or disability caused by 
                        domestic violence, sexual assault, or stalking;
                            (ii) obtain or assist a related person with 
                        respect to the employee in obtaining services 
                        from a victim services organization;
                            (iii) obtain or assist a related person 
                        with respect to the employee in obtaining 
                        psychological or other counseling;
                            (iv) seek relocation; or
                            (v) take legal action, including preparing 
                        for or participating in any civil or criminal 
                        legal proceeding relating to or resulting from 
                        domestic violence, sexual assault, or stalking.
            (14) Parent.--The term ``parent'' means a biological, 
        foster, or adoptive parent of an employee, a stepparent, 
        parent-in-law, or parent of a domestic partner, of an employee, 
        or a legal guardian or other person who stood in loco parentis 
        to an employee when the employee was a child.
            (15) Related person.--The term ``related person'' means, 
        with respect to an employee--
                    (A) a child of the employee;
                    (B) a parent of the employee;
                    (C) a spouse of the employee;
                    (D) a domestic partner of the employee; or
                    (E) any other individual related by blood or 
                affinity whose close association with the employee is 
                the equivalent of a family relationship.
            (16) Security.--The term ``security'' has the meaning given 
        the term in section 3(a) of the Securities Exchange Act of 1934 
        (15 U.S.C. 78c(a)).
            (17) Sexual assault; stalking.--The terms ``sexual 
        assault'' and ``stalking'' have the meanings given the terms in 
        section 40002(a) of the Violence Against Women Act of 1994 (34 
        U.S.C. 12291(a)).
            (18) Spouse.--The term ``spouse'', with respect to an 
        employee, has the meaning given the term by the marriage laws 
        of the State in which the marriage was celebrated.
            (19) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203).
            (20) Successor.--The term ``successor'' means, with respect 
        to a person or other incorporated or unincorporated business 
        association or trust (referred to in this paragraph as a 
        ``covered person''), any person, business association, or trust 
        that acquires, through merger, acquisition, or other means, not 
        less than 25 percent of the assets of that covered person.
            (21) Victim services organization.--The term ``victim 
        services organization''--
                    (A) means a nonprofit, nongovernmental organization 
                that--
                            (i) provides assistance to a victim of 
                        domestic violence, sexual assault, or stalking; 
                        or
                            (ii) advocates for a victim described in 
                        clause (i); and
                    (B) includes--
                            (i) a rape crisis center;
                            (ii) an organization carrying out a 
                        domestic violence, sexual assault, or stalking 
                        prevention or treatment program;
                            (iii) an organization operating a shelter 
                        or providing counseling services; and
                            (iv) a legal services organization or other 
                        organization providing assistance through the 
                        legal process.
                                 <all>