Title: Giving Workers a Fair Shot Act
Policy area: Labor and Employment

Summary:
Giving Workers a Fair Shot Act
This bill amends the Fair Labor Standards Act of 1938 to require employers to provide their employees with specified information concerning their pay, leave time, and eligibility for the minimum wage and overtime pay. Employers who fail to provide required information are subject to fines.
The bill revises the definition of "supervisor" under the National Labor Relations Act to prevent the over classification of employees as supervisors for the purpose of limiting the number of employees eligible to join a union.
The bill increases civil penalties for intentional violations of requirements under the National Labor Relations Act, the Fair Labor Standards Act of 1938, the Occupational Safety and Health Act of 1970, the Migrant and Seasonal Agricultural Worker Protection Act, and the Federal Mine Safety and Health Act of 1977, and imposes criminal penalties for violating certain requirements of those Acts, including violations of mandatory health or safety standards and for retaliation against employees who provide information about health or safety violations.
The bill expedites the establishment of an initial collective bargaining agreement by allowing either an employer or a union to seek mediation under the Federal Mediation and Conciliation Service if an agreement is not reached within 90 days after bargaining begins.
The bill amends the Securities Exchange Act of 1934 to: (1) require repeat votes by shareholders on executive compensation until a vote is binding, (2) prohibit the chief executive officer and the chairman of the board of directors at publicly traded companies from being the same person (except for small capitalization companies), and (3) impose restrictions the sale of stock by company directors or officers.
The bill disallows the reimbursement of costs incurred by a contractor in attempting to persuade its employees not to exercise their rights to organize or bargain collectively (union busting).

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2275 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2275

 To require employers to provide pay stubs, codify the Executive order 
   relating to Government contracting, provide greater oversight of 
executive compensation and restrictions on sales of stocks, clarify the 
  definition of a supervisor, and enhance penalties for violations of 
                    workforce safety and standards.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2017

  Mr. Polis introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committees on Financial Services, and Oversight and Government Reform, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To require employers to provide pay stubs, codify the Executive order 
   relating to Government contracting, provide greater oversight of 
executive compensation and restrictions on sales of stocks, clarify the 
  definition of a supervisor, and enhance penalties for violations of 
                    workforce safety and standards.

    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 ``Giving Workers a Fair Shot Act''.

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--EMPLOYER TRANSPARENCY

Sec. 101. Pay stub provision requirement.
Sec. 102. Enforcement.
Sec. 103. Effective date.
TITLE II--THE RE-EMPOWERMENT OF SKILLED AND PROFESSIONAL EMPLOYEES AND 
                       CONSTRUCTION TRADEWORKERS

Sec. 201. Definition of supervisor.
         TITLE III--ADEQUATE LABOR LAW PUNISHMENT AND PENALTIES

Sec. 301. Penalty enhancements.
                  TITLE IV--FIRST CONTRACT ARBITRATION

Sec. 401. Facilitating initial collective bargaining agreements.
     TITLE V--SHAREHOLDER EMPOWERMENT AND EXECUTIVE RESPONSIBILITY

Sec. 501. Shareholder votes on executive compensation.
Sec. 502. CEO and chairman of the board of directors required to be 
                            different individuals.
Sec. 503. Extension of certain requirements for directors and officers.
 TITLE VI--PREVENTION OF TAXPAYER DOLLARS BEING USED FOR LABOR BUSTING

Sec. 601. Limitation on the allowability of costs.

                     TITLE I--EMPLOYER TRANSPARENCY

SEC. 101. PAY STUB PROVISION REQUIREMENT.

    Section 11 of the Fair Labor Standards Act of 1938 (29 U.S.C. 211) 
is amended by adding at the end the following new subsection:
    ``(e) Every employer subject to subsection (c) shall provide to 
each employee, in conjunction with each payment of compensation to that 
employee, a document itemizing--
            ``(1) the total hours worked during the pay period;
            ``(2) the total pay during the pay period;
            ``(3) the hourly rate of pay, or--
                    ``(A) if the employee is paid a salary, the hourly 
                equivalent rate of pay;
                    ``(B) if the employee is paid a piece rate, the 
                number of piece rate units earned, the applicable piece 
                rate, and total amount paid in accordance with such 
                piece rate; or
                    ``(C) if the employee receives commissions or is 
                paid on the basis of any other type of rate, the total 
                amount paid in such commissions or in accordance with 
                such rate;
            ``(4) the total amount and rate of any overtime pay or, in 
        the case of an employee employed at piece rate, the piece rate 
        paid for each such overtime hour;
            ``(5) the total amounts of earned, used, and available paid 
        leave, and any expiration dates associated with such leave;
            ``(6) the source and amount of each deduction from total 
        pay, including an indication of whether such deduction is 
        taxable or non-taxable;
            ``(7) whether the employee is--
                    ``(A) exempt from the minimum wage requirements 
                under section 6(a);
                    ``(B) exempt from the overtime requirements under 
                section 7; and
                    ``(C) if applicable, considered by the employer to 
                be an executive, administrative, professional, or 
                outside sales employee; and
            ``(8) such additional information relating to such 
        compensation that the Secretary may require.''.

SEC. 102. ENFORCEMENT.

    Section 16(e)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
216(e)(2)) is amended--
            (1) by striking ``(2) Any person'' and inserting ``(2)(A)  
        Any person''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Any person who violates the provisions of section 11(e) of 
this Act shall be subject to a civil penalty of--
            ``(i) not more than $1,000 per day the document is not 
        provided to the employee; or
            ``(ii) not more than $100 per day the person fails to 
        provide a new document to the employee that--
                    ``(I) contains any item or items described in 
                paragraphs (1) through (8) of that subsection that was 
                missing in the document as originally provided; or
                    ``(II) corrects any such item or items that was 
                incorrect as originally provided.''.

SEC. 103. EFFECTIVE DATE.

    The amendments made by this title shall take effect with respect to 
compensation paid after the date that is 1 year after the date of the 
enactment of this Act.

TITLE II--THE RE-EMPOWERMENT OF SKILLED AND PROFESSIONAL EMPLOYEES AND 
                       CONSTRUCTION TRADEWORKERS

SEC. 201. DEFINITION OF SUPERVISOR.

    Section 2(11) of the National Labor Relations Act (29 U.S.C. 
152(11)) is amended--
            (1) by inserting ``and for a majority of the individual's 
        worktime'' after ``interest of the employer'';
            (2) by striking ``assign,''; and
            (3) by striking ``or responsibility to direct them,''.

         TITLE III--ADEQUATE LABOR LAW PUNISHMENT AND PENALTIES

SEC. 301. PENALTY ENHANCEMENTS.

    (a) National Labor Relations Act.--
            (1) Backpay.--Section 10(c) of the National Labor Relations 
        Act (29 U.S.C. 160(c)) is amended by striking ``And provided 
        further,'' and inserting ``Provided further, That if the Board 
        finds that an employer has committed a violation of section 
        8(a) that results in the discharge of an employee or other 
        serious economic loss to an employee, the Board shall award the 
        employee back pay and an additional amount as liquidated 
        damages equal to 2 times the amount of such back pay, without 
        any reduction (including any reduction based on the employee's 
        interim earnings or failure to earn interim earnings): Provided 
        further,''.
            (2) Penalty for interfering with the national labor 
        relations board.--Section 12 of the National Labor Relations 
        Act (29 U.S.C. 162) is amended by striking all that follows 
        ``shall be'' and inserting ``fined under title 18, United 
        States Code, or imprisoned for not more than three years, or 
        both.''.
    (b) Fair Labor Standards Act.--Section 16(a) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 216(a)) is amended--
            (1) by striking ``not more than six months'' and inserting 
        ``not more than three years''; and
            (2) by striking ``except for an offense'' and inserting 
        ``except for an offense: that denies an employee more than 
        $1,000 in minimum wages or overtime compensation, or both, in a 
        12-month period; that subjects such person to a civil penalty 
        under subsection (e)(1)(A)(ii); or that is''.
    (c) Occupational Safety and Health Act.--
            (1) Violation causing or significantly contributing to 
        serious illness, serious injury, or death to employee.--Section 
        17(e) of the Occupational Safety and Health Act of 1970 (29 
        U.S.C. 666(e)) is amended--
                    (A) by striking ``willfully'' and inserting 
                ``knowingly'';
                    (B) by striking ``caused death to'' and inserting 
                ``causes or significantly contributes to the serious 
                illness or serious injury (as those terms are defined 
                in section 519(b)(6) of the Federal Food, Drug, and 
                Cosmetic Act) or death, of'';
                    (C) by striking ``punished by a fine of not more 
                than $10,000 or by imprisonment for not more than six 
                months, or by both'' and inserting ``fined under title 
                18, United States Code, or imprisoned for not more than 
                10 years, or both''; and
                    (D) by striking ``such person, punishment shall be 
                by a fine of not more than $20,000 or by imprisonment 
                for not more than one year, or by both'' and inserting 
                ``such employer, the employer shall be fined under 
                title 18, United States Code, or imprisoned for not 
                more than 20 years, or both''.
            (2) Penalty for discharge or discrimination against 
        employee for exercise of rights.--Section 17 of the 
        Occupational Safety and Health Act of 1970 (29 U.S.C. 666) is 
        amended by adding at the end the following:
    ``(m) Penalties for Discharge or Discrimination Against Employee 
for Exercise of Rights.--In addition to any disposition under section 
11(c), any employer who violates section 11(c)(1) shall be punished as 
follows:
            ``(1) First violation.--For the first such violation, the 
        employer shall be fined not more than $50,000.
            ``(2) Second or subsequent violation.--If the employer 
        commits such a violation after receiving a penalty under 
        paragraph (1), the employer shall be fined not less than 
        $20,000 and not more than $200,000.
            ``(3) Violation causing or significantly contributing to 
        serious illness, serious injury, or death.--Paragraphs 1 and 2 
        notwithstanding, if such violation causes or significantly 
        contributes to a serious illness or serious injury (as those 
        terms are defined in section 519(b)(6) of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 360i)) or death, the employer 
        shall be fined under title 18, United States Code, or 
        imprisoned for not more than 10 years, or both.''.
    (d) Migrant and Seasonal Agricultural Worker Protection Act.--
Section 501 of the Migrant and Seasonal Agricultural Worker Protection 
Act (29 U.S.C. 1851) is amended--
            (1) in subsection (a) by striking ``not more than $1,000 or 
        sentenced to prison for a term not to exceed one year, or 
        both'' and inserting ``under title 18, United States Code, or 
        imprisoned for not more than three years, or both''; and
            (2) in subsection (b) by striking ``not more than $10,000 
        or sentenced to prison for a term not to exceed three years, or 
        both'' and inserting ``under title 18, United States Code, or 
        imprisoned for not more than six years, or both''.
    (e) Federal Mine Safety and Health Act.--Section 110(d) of the 
Federal Mine Safety and Health Act of 1977 (30 U.S.C. 820(d)) is 
amended to read as follows:
    ``(d) Criminal Penalties.--
            ``(1) In general.--Whoever, being an operator, knowingly--
                    ``(A) violates a mandatory health or safety 
                standard, or
                    ``(B) violates or fails or refuses to comply with 
                any order issued under section 104 or section 107, or 
                any order incorporated in a final decision issued under 
                this Act (except an order incorporated in a decision 
                under subsection (a)(1) or section 105(c)),
        shall, upon conviction, be fined not more than $250,000, or 
        imprisoned for not more than 1 year, or both, except that if 
        the operator commits the violation after having been previously 
        convicted of a violation under this paragraph and if, the 
        operator knows or has reason to know that such subsequent 
        violation has the potential to expose a miner to risk of 
        serious injury, serious illness, or death, the operator shall, 
        upon conviction, be fined not more than $1,000,000, or 
        imprisoned for not more than 5 years, or both.
            ``(2) Significant risk of serious injury, serious illness, 
        or death.--Whoever, being an operator, knowingly--
                    ``(A) tampers with or disables a required safety 
                device (except with express authorization from the 
                Secretary),
                    ``(B) violates a mandatory health or safety 
                standard, or
                    ``(C) violates or fails or refuses to comply with 
                an order issued under section 104 or 107, or any order 
                incorporated in a final decision issued under this Act 
                (except an order incorporated in a decision under 
                subsection (a)(1) or section 105(c)),
        and thereby recklessly exposes a miner to significant risk of 
        serious injury, serious illness, or death, shall, upon 
        conviction, be fined not more than $1,000,000 or imprisoned for 
        not more than 5 years, or both, except that if the operator 
        commits the violation after having been previously convicted of 
        a violation under this paragraph, the operator shall, upon 
        conviction, be fined not more than $2,000,000, or imprisoned 
        for not more than 10 years, or both.
            ``(3) Criminal penalties for retaliation.--Whoever 
        knowingly--
                    ``(A) with the intent to retaliate, interferes with 
                the lawful employment or livelihood of a person, or the 
                spouse, sibling, child, or parent of a person, because 
                any of them provides information to an authorized 
                representative of the Secretary, to a State or local 
                mine safety or health officer or official, or to other 
                law enforcement officer, in reasonable belief that the 
                information is true and related to an apparent health 
                or safety violation, or to an apparent unhealthful or 
                unsafe condition, policy, or practice under this Act, 
                or
                    ``(B) interferes, or threatens to interfere, with 
                the lawful employment or livelihood of a person, or the 
                spouse, sibling, child, or parent of a person, with the 
                intent to prevent any of them from so providing such 
                information,
        shall be fined under title 18 or imprisoned for not more than 5 
        years, or both.''.

                  TITLE IV--FIRST CONTRACT ARBITRATION

SEC. 401. FACILITATING INITIAL COLLECTIVE BARGAINING AGREEMENTS.

    Section 8 of the National Labor Relations Act (29 U.S.C. 158) is 
amended by adding at the end the following:
    ``(h) Whenever collective bargaining is for the purpose of 
establishing an initial agreement following certification or 
recognition, in lieu of subsection (d), the following shall apply:
            ``(1) Not later than 10 days after receiving a written 
        request for collective bargaining from an individual or labor 
        organization that has been newly organized or certified as a 
        representative as described in section 9(a), or within such 
        further period as the parties agree upon, the parties shall 
        meet and commence to bargain collectively and shall make every 
        reasonable effort to conclude and sign a collective bargaining 
        agreement.
            ``(2) If after the expiration of the 90-day period 
        beginning on the date on which bargaining is commenced, or such 
        additional period as the parties may agree upon, the parties 
        have failed to reach an agreement, either party may notify the 
        Federal Mediation and Conciliation Service of the existence of 
        a dispute and request mediation. Whenever such a request is 
        received, it shall be the duty of the Service promptly to put 
        itself in communication with the parties and to use its best 
        efforts, by mediation and conciliation, to bring them to 
        agreement.
            ``(3) If after the expiration of the 30-day period 
        beginning on the date on which the request for mediation is 
        made under paragraph (2), or such additional period as the 
        parties may agree upon, the Service is not able to bring the 
        parties to agreement by conciliation, the Service shall refer 
        the dispute to an arbitration board established in accordance 
        with such regulations as may be prescribed by the Service. The 
        arbitration panel shall render a decision settling the dispute 
        and such decision shall be binding upon the parties for a 
        period of 2 years, unless amended during such period by written 
        consent of the parties.''.

     TITLE V--SHAREHOLDER EMPOWERMENT AND EXECUTIVE RESPONSIBILITY

SEC. 501. SHAREHOLDER VOTES ON EXECUTIVE COMPENSATION.

    (a) Additional Votes Required if Resolution on Compensation Not 
Approved by Shareholders.--Section 14A(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78n-1(a)) is amended by adding at the end the 
following:
            ``(4) Additional votes required if resolution on 
        compensation not approved by shareholders.--
                    ``(A) In general.--If a resolution required by 
                paragraph (1) or this subparagraph is not approved by 
                vote of the shareholders, the issuer shall call a 
                meeting of the shareholders at which there shall be, 
                separately for each executive officer whose 
                compensation was not approved in the earlier vote, a 
                shareholder vote on a separate resolution to approve 
                the compensation disclosed under subparagraph (B) with 
                respect to such executive officer.
                    ``(B) Disclosure.--The proxy or consent or 
                authorization for a meeting required by subparagraph 
                (A) shall disclose--
                            ``(i) pursuant to section 229.402 of title 
                        17, Code of Federal Regulations, or any 
                        successor thereto, the compensation of each 
                        executive officer whose compensation will be 
                        subject to approval at such meeting; and
                            ``(ii) in a clear and simple form in 
                        accordance with regulations to be promulgated 
                        by the Commission, any arrangements, whether or 
                        not written, that each such executive officer 
                        has with the issuer concerning the terms under 
                        which any type of compensation may be earned by 
                        or awarded to the executive officer, including 
                        in the future, unless such arrangements are 
                        disclosed under clause (i).
                    ``(C) Timing of votes.--
                            ``(i) Initial vote.--The vote on the 
                        initial resolution required by subparagraph (A) 
                        with respect to an executive officer shall 
                        occur not later than the end of the third 
                        quarter of the same fiscal year of the issuer 
                        in which the vote on the resolution required by 
                        paragraph (1) occurs.
                            ``(ii) Second vote.--If the initial 
                        resolution required by subparagraph (A) with 
                        respect to an executive officer is not approved 
                        by the shareholders, the vote on the second 
                        resolution required by such subparagraph with 
                        respect to such executive officer shall occur 
                        not later than the date that is 90 days after 
                        the vote on the initial resolution required by 
                        such subparagraph with respect to such 
                        executive officer.
                            ``(iii) Subsequent votes.--If the second 
                        resolution required by subparagraph (A) with 
                        respect to an executive officer, or any 
                        subsequent resolution required by such 
                        subparagraph with respect to such executive 
                        officer, is not approved by the shareholders, 
                        the vote on the next resolution required by 
                        such subparagraph with respect to such 
                        executive officer shall occur not later than 
                        the date that is 90 days after the vote on the 
                        previous resolution required by such 
                        subparagraph with respect to such executive 
                        officer.
                    ``(D) Inapplicability.--Subparagraph (A) does not 
                apply with respect to an individual who is no longer an 
                executive officer of the issuer.''.
    (b) Binding Effect of Votes on Frequency.--Section 14A(a)(2) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78n-1(a)(2)) is amended by 
adding at the end the following: ``Such votes shall occur not less 
frequently than so determined.''.
    (c) Rules of Construction.--Section 14A(c) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78n-1(c)) is amended--
            (1) in paragraph (2), by striking the semicolon and 
        inserting ``; or'';
            (2) in paragraph (3), by striking ``; or'' and inserting a 
        period;
            (3) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and moving the 
        margins of such subparagraphs 2 ems to the right;
            (4) by striking ``Rule of Construction.--The shareholder 
        vote referred to in subsections (a) and (b)'' and inserting the 
        following: ``Rules of Construction.--
            ``(1) In general.--Except for the shareholder vote required 
        by paragraph (2) of subsection (a), and except for the 
        requirement of paragraph (4) of such subsection for a 
        shareholder vote on a subsequent resolution after failure of a 
        previous resolution to be approved by the shareholders, a 
        shareholder vote required by subsection (a) or (b)''; and
            (5) by striking ``(4) to restrict or limit'' and inserting 
        the following:
            ``(2) No effect on ability of shareholders to make 
        proposals.--A shareholder vote required by subsection (a) or 
        (b) may not be construed to restrict or limit''.
    (d) Effective Date.--The amendments made by this section shall 
apply to an issuer--
            (1) with respect to an additional shareholder vote under 
        paragraph (4) of section 14A(a) of the Securities Exchange Act 
        of 1934, as added by subsection (a) of this section, beginning 
        with the first shareholder vote under paragraph (1) of such 
        section 14A(a) that occurs on or after the date that is 1 year 
        after the date of the enactment of this Act; and
            (2) with respect to a shareholder vote under paragraph (2) 
        of such section 14A(a), beginning with the first such vote that 
        occurs on or after the date that is 1 year after the date of 
        the enactment of this Act.

SEC. 502. CEO AND CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRED TO BE 
              DIFFERENT INDIVIDUALS.

    (a) In General.--The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) is amended by inserting after section 39 the following:

``SEC. 40. CEO AND CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRED TO BE 
              DIFFERENT INDIVIDUALS.

    ``(a) In General.--Except as provided in subsection (b), an issuer 
that is required to prepare a proxy statement under section 14(a) may 
not have the same individual simultaneously serving in the position of 
chief executive officer (or any equivalent position) of such issuer and 
chairman of the board of directors (or any equivalent position) of such 
issuer, and an individual may not simultaneously serve in both such 
positions.
    ``(b) Treatment of Small Capitalization Companies.--Subsection (a) 
shall not apply in the case of a small capitalization company (as 
defined by the Commission by regulation) if, by shareholder vote, the 
shareholders elect for such subsection not to apply.''.
    (b) Conforming Amendment.--The Securities Exchange Act of 1934 is 
further amended by striking section 14B.
    (c) Effective Date.--The amendments made by this section shall 
apply beginning on the date that is 2 years after the date of the 
enactment of this Act.

SEC. 503. EXTENSION OF CERTAIN REQUIREMENTS FOR DIRECTORS AND OFFICERS.

    (a) In General.--Section 16 of the Securities Exchange Act of 1934 
(15 U.S.C. 78p) is amended by adding at the end the following:
    ``(h) Persons Ceasing To Be Directors or Officers.--
            ``(1) Continued applicability of requirements.--During the 
        period beginning on the date on which a person ceases to be a 
        director or officer described in subsection (a)(1) with respect 
        to an issuer and ending on the date that is 1 year thereafter, 
        such person shall continue to be subject to this section 
        (except as provided in paragraph (2)) in the same manner and to 
        the same extent as if such person had not so ceased.
            ``(2) Prohibition on selling more than 25 percent of stock 
        of issuer.--If a person ceases to be a director or officer 
        described in subsection (a)(1) with respect to an issuer, such 
        person may not, during the period that begins on the first day 
        of the last full fiscal quarter of the issuer in which such 
        person is such a director or officer and ends on the date that 
        is 1 year after the date on which such person so ceases, sell 
        more than 25 percent of the equity securities of such issuer 
        (other than an exempted security) that such person owns on the 
        first day of such period.''.
    (b) Conforming Amendment.--Section 16(d) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78p(d)) is amended by striking ``subsection 
(c)'' and inserting ``subsections (c) and (h)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to a person who ceases to be a director or officer described in 
section 16(a)(1) of the Securities Exchange Act of 1934 after the date 
that is 1 year after the date of the enactment of this Act.

 TITLE VI--PREVENTION OF TAXPAYER DOLLARS BEING USED FOR LABOR BUSTING

SEC. 601. LIMITATION ON THE ALLOWABILITY OF COSTS.

    (a) Amendment.--Chapter 43 of division C of subtitle I of title 41, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 4311. Limitation on the allowability of costs
    ``(a) In General.--Costs incurred by a contractor relating to any 
covered activity are not allowable as reimbursable costs under a 
contract entered into by an executive agency. Such unallowable costs 
shall be excluded from any billing, claim, proposal, or disbursement 
applicable to any such contract.
    ``(b) Covered Activities.--For purposes of subsection (a), a 
covered activity, with respect to a contract entered into by an 
executive agency, includes any activity undertaken to persuade 
employees of the contractor to exercise or not to exercise, or 
concerning the manner of exercising, rights to organize and bargain 
collectively through representatives of the employees' own choosing, 
and includes the following:
            ``(1) Preparing and distributing materials.
            ``(2) Hiring or consulting legal counsel or consultants.
            ``(3) Holding meetings (including paying the salaries of 
        the attendees at meetings held for this purpose).
            ``(4) Planning or conducting activities by managers, 
        supervisors, or union representatives during work hours.
    ``(c) Exception.--The costs described in subsection (a) do not 
include costs of maintaining satisfactory relations between the 
contractor and its employees, including costs of labor-management 
committees, employee publications (other than those undertaken to 
persuade employees to exercise or not to exercise, or concerning the 
manner of exercising, the right to organize and bargain collectively), 
and other related activities.''.
    (b) Technical and Conforming Amendment.--The table of sections at 
the beginning of chapter 43 of division C of subtitle I of title 41, 
United States Code, is amended by adding after the item relating to 
section 4310 the following new item:

``4311. Limitation on the allowability of costs.''.
    (c) Existing FAR Application.--Section 31.205-21 of title 48, Code 
of Federal Regulations (relating to labor relations costs), shall be 
considered to implement the provisions of section 4311 of title 41, 
United States Code, as added by subsection (a), and may be revised as 
necessary.
                                 <all>