Title II — Small business protection through shared responsibility for workers’ rights

H.R. 8375 · 116th Congress · Sep 24, 2020 · Lineage

II Small business protection through shared responsibility for workers’ rights

Sec. 201 General shared responsibility for workers’ rights

(a)

Fair Labor Standards Act of 1938— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 102(a)(6)(A), is further amended by adding at the end the following:

“(5) Multiple employers

“(A) Rule of interpretation—This paragraph—

“(i) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as employers in relation to a given employee under this Act, including in a multiple employer or joint employment structure;

“(ii) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(iii) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given employee or whether multiple persons are employers of a given employee.

“(B) In general—Two or more persons shall be employers with respect to an employee if each such person individually, acting directly or indirectly, is an employer of the employee, based on and in accordance with the meaning given the term employer under paragraphs (1), (2), and (3) of this subsection, the definition of “employee” under subsection (e), and the definition of “employ” under subsection (g).

“(C) Additional multiple employer determinations—Notwithstanding subparagraph (B), 2 or more persons shall be employers, acting directly or indirectly, with respect to an employee if—

“(i) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by an employee; and

“(ii)

“(I) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(II) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(III) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(aa) exerting direction or control over any material term or condition of employment of the employee;

“(bb) ensuring compliance with the requirements of this Act with regard to the employee’s performance of such labor; or

“(cc) upholding the rights and protections of this Act with regard to the employee’s performance of such labor; or

“(IV) based on an act or omission of the 2 or more persons, the employee reasonably believed that such persons were the employee’s employers and the employee did not have actual knowledge that any of the persons were not the employee’s employer under this Act.”

(b)

National Labor Relations Act— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 102(b)(6)(A), is further amended by adding at the end the following:

“(C) Multiple employers

“(i) Rule of interpretation—This subparagraph—

“(I) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as employers in relation to a given employee under this Act, including in a multiple employer or joint employment structure;

“(II) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(III) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given employee or whether multiple persons are employers of a given employee.

“(ii) In general—Two or more persons shall be employers with respect to an employee if each such person individually, acting directly or indirectly, is an employer of the employee, based on and in accordance with the meanings given the term employer under subparagraph (A) and the term employee under paragraph (3).

“(iii) Additional multiple employer determinations—Notwithstanding clause (ii), 2 or more persons shall be employers, acting directly or indirectly, with respect to an employee if—

“(I) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by an employee; and

“(II)

“(aa) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(bb) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(cc) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(AA) exerting direction or control over any material term or condition of employment of the employee;

“(BB) ensuring compliance with the requirements of this Act with regard to the employee’s performance of such labor; or

“(CC) upholding the rights and protections of this Act with regard to the employee’s performance of such labor;

“(dd) based on an act or omission of the 2 or more persons, the employee reasonably believed that such persons were the employee’s employers and the employee did not have actual knowledge that any of the persons were not the employee’s employer under this Act; or

“(ee) based on the totality of the circumstances of the industrial realities, including the way separate persons have structured their commercial relationship, 2 or more persons wield sufficient influence over any material term or condition of employment of the employee such that meaningful bargaining could not occur in the absence of the 2 or more persons.”

(c)

Occupational Safety and Health Act of 1970— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 102(c)(6)(A), is further amended by adding at the end the following:

“(C) Multiple employers

“(i) Rule of interpretation—This subparagraph—

“(II) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(ii) In general—Two or more persons shall be employers with respect to an employee if each such person individually, acting directly or indirectly, is an employer of the employee, based on and in accordance with the meaning given the term employer under subparagraph (A) and the definition of “employee” under paragraph (6).

“(iii) Additional multiple employer determinations—Notwithstanding clause (ii), 2 or more persons shall be employers, acting directly or indirectly, with respect to an employee if—

“(I) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by an employee; and

“(II)

“(aa) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(bb) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(cc) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(AA) exerting direction or control over any material term or condition of employment of the employee;

“(BB) ensuring compliance with the requirements of this Act with regard to the employee’s performance of such labor; or

“(CC) upholding the rights and protections of this Act with regard to the employee’s performance of such labor; or

(d)

Federal Mine Safety and Health Act of 1977— The Federal Mine Safety and Health Act of 1977 (30 U.S.C. 801 et seq.), as amended by paragraphs (1) and (2) of section 102(d), is further amended by inserting after section 4A the following:

“4B. Applicability to multiple employers and related entities

“(a) Multiple employers

“(1) Rule of interpretation—This subsection—

“(A) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as operators in relation to a given miner under this Act, including in a multiple employer or joint employment structure;

“(B) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(C) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given miner or whether multiple persons are employers with respect to a given miner.

“(2) In general—Two or more persons shall be employers with respect to a miner of a coal or other mine if, based on the definitions given the terms operator and miner in section 3, each such person individually satisfies the definition of an operator under this Act in relation to a given miner.

“(3) Additional multiple employer determinations—Notwithstanding paragraph (2), 2 or more persons shall be employers, acting directly or indirectly, with respect to a miner of a coal or other mine if—

“(A) one of the persons is an operator of a coal or other mine and the miner is performing labor for the operator;

“(B) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by the miner; and

“(C)

“(i) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the miner, including through an intermediary;

“(ii) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the miner, including through an intermediary;

“(iii) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(I) exerting direction or control over any material term or condition of employment of the miner;

“(II) ensuring compliance with the requirements of this Act with regard to the miner's performance of such labor; or

“(III) upholding the rights and protections of this Act with regard to the miner’s performance of such labor; or

“(iv) based on an act or omission of the 2 or more persons, the miner reasonably believed that such persons were the miner's employers and the miner did not have actual knowledge that any of the persons were not the miner’s employer under this Act.”

(e)

Migrant and Seasonal Agricultural Worker Protection Act— Section 5 of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1803), as redesignated by section 102(e)(1)(A), is further amended by adding at the end the following:

“(c) Expanded applicability

“(1) Responsibility of agricultural employers and agricultural associations for workers of farm labor contractors—In any case where an agricultural employer or an agricultural association has entered into an agreement with a farm labor contractor to provide migrant agricultural workers or seasonal agricultural workers to the employer or association, both the agricultural employer or association and the farm labor contractor shall be responsible for the rights and protections of this Act with regard to the migrant agricultural worker or seasonal agricultural worker, as the case may be, in any case where the farm labor contractor is responsible for the rights and protections of this Act.

“(2) Multiple employers

“(A) Rule of interpretation—This paragraph—

“(i) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as agricultural employers, agricultural associations, or farm labor contractors in relation to a given employee under this Act, including in a multiple employer or joint employment structure;

“(ii) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(iii) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given migrant agricultural worker or seasonal agricultural worker or whether multiple persons are employers of a given worker.

“(B) In general—Two or more persons, acting directly or indirectly, shall be responsible for the rights and protections of this Act with respect to a migrant agricultural worker or seasonal agricultural worker, if based on the application of the definitions of “agricultural association”, “agricultural employer”, “agricultural employment”, “employ”, “farm labor contractor”, “migrant agricultural worker”, and “seasonal agricultural worker” under section 3, each such person individually satisfies the definition of a farm labor contractor, agricultural employer, or agricultural association under this Act in relation to a given migrant agricultural worker or seasonal agricultural worker.

“(C) Additional multiple employer determinations—Notwithstanding subparagraph (B), 2 or more persons, acting directly or indirectly, shall be responsible for the rights and protections of this Act with respect to a migrant agricultural worker or seasonal agricultural worker if—

“(i) one of the persons is a farm labor contractor, agricultural employer, or agricultural association and the migrant agricultural worker or seasonal agricultural worker is performing labor for such person;

“(ii) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by the worker; and

“(iii)

“(I) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the worker, including through an intermediary;

“(II) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the worker, including through an intermediary;

“(III) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(aa) exerting direction or control over any material term or condition of employment of the worker;

“(bb) ensuring compliance with the requirements of this Act with regard to the worker's performance of such labor; or

“(cc) upholding the rights and protections of this Act with regard to the worker’s performance of such labor; or

“(IV) based on an act or omission of the 2 or more persons, the worker reasonably believed that each such person was a farm labor contractor, agricultural employer, or agricultural association that employed the worker and the worker did not have actual knowledge that any of the persons were not the worker's employer for purposes of this this Act.

“(3) Interaction with registration requirements—Notwithstanding paragraph (2), an agricultural employer or agricultural association shall not be subject to liability for any violation of title I by a farm labor contractor.”

(f)

Davis-Bacon Act— Subchapter IV of chapter 31 of title 40, United States Code, as amended by section 102(f)(5), is further amended by inserting after section 3144a the following:

“3144b. Applicability to multiple employers and related entities

“(a) Multiple employers

“(1) Rule of interpretation—This subsection—

“(A) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as employers in relation to a given laborer or mechanic under this subchapter, including in a multiple employer or joint employment structure;

“(B) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(C) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given laborer or mechanic or whether multiple persons are employers of a laborer or mechanic.

“(2) Additional multiple employer determinations—Two or more persons, acting directly or indirectly, shall be responsible for the rights and protections of this subchapter with respect to a laborer or mechanic if—

“(A) one of the persons is a contractor, or subcontractor, for a contract to which this subchapter applies and the laborer or mechanic is performing labor under such contract;

“(B) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by the laborer or mechanic; and

“(C)

“(i) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the laborer or mechanic, including through an intermediary;

“(ii) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the laborer or mechanic, including through an intermediary;

“(iii) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(I) exerting direction or control over any material term or condition of employment of the laborer or mechanic;

“(II) ensuring compliance with the requirements of this subchapter with regard to the laborer or mechanic's performance of such labor; or

“(III) upholding the rights and protections of this subchapter with regard to the laborer or mechanic's performance of such labor; or

“(iv) based on an act or omission of the 2 or more persons, the laborer or mechanic reasonably believed that such persons were the laborer or mechanic's employers and the laborer or mechanic did not have actual knowledge that any of the persons were not the laborer or mechanic's employer under this subchapter.”

(g)

McNamara-O'Hara Service Contract Act— Chapter 67 of title 41, United States Code, is amended by inserting after section 6701 the following:

“6701a. Applicability to multiple employers and related entities

“(a) Multiple employers

“(1) Rule of interpretation—This subsection—

“(A) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as employers in relation to a given service employee under this chapter, including in a multiple employer or joint employment structure;

“(B) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(C) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of a given service employee or whether multiple persons are employers of a service employee.

“(2) Additional multiple employer determinations—Two or more persons, acting directly or indirectly, shall be responsible for the rights and protections of this chapter with respect to a service employee if—

“(A) one of the persons is a contractor, or subcontractor, for a contract to which this chapter applies and the service employee is performing labor under such contract;

“(B) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by the service employee; and

“(C)

“(i) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the service employee, including through an intermediary;

“(ii) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the service employee, including through an intermediary;

“(iii) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(I) exerting direction or control over any material term or condition of employment of the service employee;

“(II) ensuring compliance with the requirements of this chapter with regard to the service employee's performance of such labor; or

“(III) upholding the rights and protections of this chapter with regard to the service employee's performance of such labor; or

“(iv) based on an act or omission of the 2 or more persons, the service employee reasonably believed that such persons were the service employee's employers and the service employee did not have actual knowledge that any of the persons were not the service employee's employer under this chapter.”

(h)

Walsh-Healey Public Contracts Act— Chapter 65 of title 41, United States Code, is amended by inserting after section 6501a the following:

“6501b. Applicability to multiple employers and related entities

“(a) Multiple employers

“(1) Rule of interpretation—This subsection—

“(A) is to be read as an addition to, and an augmentation and expansion of, all relevant judicial and agency interpretations in existence on the date of enactment of the Worker Flexibility and Small Business Protection Act of 2020 regarding which persons qualify as employers in relation to a given individual performing labor in the manufacture or furnishing of materials, supplies, articles, or equipment under a contract subject to this chapter, including in a multiple employer or joint employment structure;

“(B) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(C) is not a codification of the common law and shall not be interpreted to reflect, or to be limited or restricted by, common law interpretations regarding whether a person is an employer of an individual described in subparagraph (A) or whether multiple persons are employers of such individual.

“(A) one of the persons is a contractor for a contract to which this chapter applies and the individual is performing labor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract;

“(B) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from such performance of labor by the individual; and

“(C)

“(i) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the individual;

“(ii) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the individual, including through an intermediary;

“(iii) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(I) exerting direction or control over any material term or condition of employment of the individual;

“(II) ensuring compliance with the requirements of this chapter with regard to the individual's performance of such labor; or

“(III) upholding the rights and protections of this chapter with regard to the individual's performance of such labor; or

“(iv) based on an act or omission of the 2 or more persons, the individual reasonably believed that such persons were the individual's employers and the individual did not have actual knowledge that any of the persons were not the individual's employer under this chapter.”

(i)

Family and Medical Leave Act of 1993— Section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)), as amended by section 102(h)(3), is further amended by adding at the end the following:

“(D) Multiple employers

“(i) Rule of interpretation—This subparagraph—

“(II) shall not be interpreted by any court or agency as a restriction on, or narrowing of, any such interpretations; and

“(ii) In general—Two or more persons shall be employers with respect to an employee if each such person individually, acting directly or indirectly, is an employer, based on and in accordance with the meaning given the term employer under subparagraphs (A) and (B) of this paragraph, and the definitions of employ and employee under paragraph (3).

“(iii) Additional multiple employer determinations—Notwithstanding clause (ii), 2 or more persons shall be employers, acting directly or indirectly, with respect to an employee if—

“(I) each such person directly or indirectly benefits or seeks to directly or indirectly benefit from the performance of labor by an employee; and

“(II)

“(aa) each such person exerts actual direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(bb) each such person exerts functional direction or control, directly or indirectly, over any material term or condition of employment of the employee, including through an intermediary;

“(cc) each such person is legally capable, without regard as to whether such capability is used, of directly or indirectly—

“(AA) exerting direction or control over any material term or condition of employment of the employee;

“(BB) ensuring compliance with the requirements of this Act with regard to the employee; or

“(CC) upholding the rights and protections of this Act with regard to the employee; or

(j)

Federal Unemployment Tax Act (FUTA)—

(1)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as added by section 102(j), is amended by adding at the end the following new paragraph:

“(3) Paragraph (5) of section 3(d) of such Act.”

(2)

Effective date— The amendment made by paragraph (1) shall apply to services rendered on or after January 1, 2022.

Sec. 202 Massive corporations

(a)

Joint responsibility for all corporate family employees—

(1)

Fair Labor Standards Act of 1938— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 201(a), is further amended by adding at the end the following:

“(6) Subsidiaries—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a subsidiary of the employer, or subsidiary under a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this Act for the employee.”

(2)

National Labor Relations Act— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 201(b), is further amended by adding at the end the following:

“(D) Subsidiaries—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a subsidiary of the employer, or subsidiary under a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this Act for the employee.”

(3)

Occupational Safety and Health Act of 1970— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 201(c), is further amended by adding at the end the following:

“(E) Subsidiaries—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a subsidiary of the employer, or subsidiary under a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this Act for the employee.”

(4)

Federal Mine Safety and Health Act of 1977— Section 4B of the Federal Mine Safety and Health Act of 1977, as added by section 201(d), is further amended by adding at the end the following:

“(b) Subsidiaries—An employer shall also be responsible for the rights and protections of this Act with regard to a miner of a coal or other mine who is an employee of a subsidiary of the employer, or subsidiary under a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this Act for the miner.”

(5)

Migrant and Seasonal Agricultural Worker Protection Act— Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1803(c)), as added by section 201(e), is further amended by adding at the end the following:

“(4) Subsidiaries—An entity shall also be responsible for the rights and protections of this Act with regard to an individual who is a migrant agricultural worker or seasonal agricultural worker employed by a farm labor contractor, agricultural employer, or agricultural association, that is a subsidiary of the entity, or a subsidiary under such a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this Act for the migrant agricultural worker or seasonal agricultural worker.”

(6)

Davis-Bacon Act— Section 3144b of title 40, United States Code, as added by section 201(f), is further amended by adding at the end the following:

“(b) Subsidiaries—An entity shall also be responsible for the rights and protections of this subchapter with regard to a laborer or mechanic employed by a contractor or any subcontractor that is a subsidiary of the entity, or a subsidiary under such a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this subchapter for the laborer or mechanic.”

(7)

McNamara-O'Hara Service Contract Act— Section 6701a of title 41, United States Code, as added by section 201(g), is further amended by adding at the end the following:

“(b) Subsidiaries—An entity shall also be responsible for the rights and protections of this chapter with regard to a service employee of a contractor that is a subsidiary of the entity, or a subsidiary under such a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this chapter for the service employee.”

(8)

Walsh-Healey Public Contracts Act— Section 6501b of title 41, United States Code, as added by section 201(h), is further amended by adding at the end the following:

“(b) Subsidiaries—An entity shall also be responsible for the rights and protections of this chapter with regard to an individual employed by a contractor that is a subsidiary of the entity, or a subsidiary under such a subsidiary, in any case where the subsidiary is responsible for the rights and protections of this chapter for the individual.”

(9)

Family and Medical Leave Act of 1993— Section 101(4) of the Family and Medical Leave Act of 1993 (20 U.S.C. 2611(4)), as amended by section 201(i), is further amended by adding at the end the following:

(10)

Federal Unemployment Tax Act (FUTA)—

(A)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 201(j), is amended by adding at the end the following new paragraph:

“(4) Paragraph (6) of section 3(d) of such Act.”

(B)

Effective date— The amendment made by subparagraph (A) shall apply to services rendered on or after January 1, 2022.

(b)

Joint responsibility as owners, directors, officers, and managing agents—

(1)

Fair Labor Standards Act of 1938— Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216), as amended by section 102(a)(8)(C), is further amended by adding at the end the following:

“(g) Owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this Act, the Secretary or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the employer if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

“(2) Amount of civil penalty—The amount of, or range for, a civil penalty for a violation under paragraph (1) shall, in any case where a similar civil penalty against the employer is established by law, be the amount or range for the civil penalty that may be assessed against the employer for such violation.”

(2)

National Labor Relations Act— Section 12 of the National Labor Relations Act (29 U.S.C. 162), as amended by section 102(b)(7)(B), is further amended by adding at the end the following:

“(e) Owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this Act, the Board or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the employer if the Board or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(3)

Occupational Safety and Health Act of 1970— Section 17 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 666), as amended by section 102(c)(7)(B), is amended by inserting after subsection (k) the following:

“(m) Owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this Act, including any standard, rule, regulation, or order promulgated pursuant to this Act, the Secretary or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the employer if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(4)

Federal Mine Safety and Health Act of 1977—

(A)

In general— Title I of the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 820), as amended by section 102(d), is further amended by adding at the end the following:

“118. Liability of owners, directors, officers, managing agents, and large shareholders; indemnification

“(a) Owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this Act including any mandatory health or safety standard, rule, order, or regulation promulgated pursuant to this Act, the Secretary or court may also assess a civil penalty against an owner, director, officer, or managing agent of the operator or employer if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(5)

Migrant and Seasonal Agricultural Worker Protection Act— Title V of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1851 et seq.), as amended by section 102(e)(5)(A), is further amended by inserting after section 504 the following:

“505. Liability of owners, directors, officers, managing agents, and large shareholders; indemnification

“(a) Civil penalty liability for owners, directors, officers, and managing agents of farm labor contractors, agricultural employers, or agricultural associations

“(1) In general—In any action or proceeding for a violation of this Act, including any regulation under this Act, by a farm labor contractor, agricultural employer, or agricultural association, the Secretary or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the farm labor contractor, agricultural employer, or agricultural association if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(6)

Davis-Bacon Act— Section 3144c of title 40, United States Code, as amended by section 102(f)(6), is further amended by adding at the end the following:

“(d) Civil penalty liability for owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this subchapter, the Secretary of Labor or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the contractor or subcontractor if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(7)

McNamara-O'Hara Service Contract Act— Chapter 67 of title 41, United States Code, is amended—

(A)

by redesignating sections 6705, 6706, and 6707 as sections 6706, 6708, and 6709, respectively; and

(B)

by inserting after section 6706 the following:

“6707. Civil penalties assessed against owners, directors, officers, managing agents, and large shareholders; indemnification

“(a) Civil penalty liability for owners, directors, officers, and managing agents

“(1) In general—In any action or proceeding for a violation of this chapter, the Secretary or court may also assess a civil penalty for such violation against an owner, director, officer, or managing agent of the contractor if the Secretary or court determines, based on the particular facts and circumstances presented, that personal liability for the violation is warranted because the owner, director, officer, or managing agent—

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(8)

Walsh-Healey Public Contracts Act— Section 6506b of title 41, United States Code, as amended by section 102(g)(6), is further amended by adding at the end the following:

“(d) Civil penalties assessed against owners, directors, officers, managing agents, and large shareholders

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(9)

Family and Medical Leave Act of 1993— Section 107 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2617) is amended—

(A)

by redesignating subsections (e) and (f) as subsections (i) and (j), respectively; and

(B)

by inserting after subsection (d) the following:

“(e) Owners, directors, officers, and managing agents

“(A) directed or committed the violation;

“(B) established a policy that led to such a violation; or

“(C) had actual or constructive knowledge of the violation, had the authority to prevent the violation, and failed to prevent the violation.

(c)

Responsibilities of 10 largest shareholders—

(1)

Fair Labor Standards Act of 1938— Section 16 of the Fair Labor Standards Act of 1938 (20 U.S.C. 216), as amended by subsection (b)(1), is further amended by adding at the end the following:

“(h) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this Act, the 10 largest shareholders of an employer, as determined by the fair value for their beneficial interest as of the beginning of the period during which the violation occurred, shall—

“(A) jointly and severally be personally liable for all violations of this Act and for all damages awarded and civil penalties assessed for violations of this Act; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the employer for the violations, with the employer responsible for not more than 90 percent.

“(2) No reimbursement—An employer may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(2)

National Labor Relations Act— Section 12 of the National Labor Relations Act (29 U.S.C. 162), as amended by subsection (b)(2), is further amended by adding at the end the following:

“(f) Joint liability of large shareholders

“(A) jointly and severally be personally liable for all violations of this Act and for all damages awarded and civil penalties assessed for violations of this Act; and

“(2) No reimbursement—An employer may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(3)

Occupational Safety and Health Act of 1970— Section 17 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 666), as amended by subsection (b)(3), is further amended by adding at the end the following:

“(n) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this Act, including any standard, rule, regulation, or order promulgated pursuant to this Act, the 10 largest shareholders of an employer, as determined by the fair value for their beneficial interest as of the beginning of the period during which the violation occurred, shall—

“(A) jointly and severally be personally liable for all violations of this Act and for all damages awarded and civil penalties assessed for violations of this Act; and

“(2) No reimbursement—An employer may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(4)

Federal Mine Safety and Health Act of 1977— Section 118 of the Federal Mine Safety and Health Act of 1977, as added by subsection (b)(4), is further amended by adding at the end the following:

“(b) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this Act, including any mandatory health or safety standard, rule, order, or regulation promulgated pursuant to this Act, the 10 largest shareholders of an operator of a coal or other mine, as determined by the fair value for their beneficial interest as of the beginning of the period during which such violation occurred, shall—

“(A) jointly and severally be personally liable for all such violations, and for all damages awarded and civil penalties assessed for such violations; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the operator for all violations, with the operator responsible for not more than 90 percent.

“(2) No reimbursement—An operator may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(5)

Migrant and Seasonal Agricultural Worker Protection Act— Section 505 of the Migrant and Seasonal Agricultural Worker Protection Act, as added by subsection (b)(5), is further amended by adding at the end the following:

“(b) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this Act, including any regulation under this Act, the 10 largest shareholders of a farm labor contractor, agricultural employer, or agricultural association, as determined by the fair value for their beneficial interest as of the beginning of the period during which such violation occurred, shall—

“(A) jointly and severally be personally liable for all violations of this Act, including any regulation under this Act, and for all damages awarded and civil penalties assessed for such violations; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the farm labor contractor, agricultural employer, or agricultural association for all violations, with the farm labor contractor, agricultural employer, or agricultural association (respectively) responsible for not more than 90 percent.

“(2) No reimbursement—A farm labor contractor, agricultural employer, or agricultural association may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(6)

Davis-Bacon Act— Section 3144c of title 40, United States Code, as amended by subsection (b)(6), is further amended by adding at the end the following:

“(e) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this subchapter, the 10 largest shareholders of a contractor or subcontractor, as determined by the fair value for their beneficial interest as of the beginning of the period during which the violation occurred, shall—

“(A) jointly and severally be personally liable for all violations of this subchapter, and for all damages awarded and civil penalties assessed for violations of this subchapter; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the contractor or subcontractor for the violations, with the contractor or subcontractor responsible for not more than 90 percent.

“(2) No reimbursement—A contractor or subcontractor may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(7)

McNamara-O'Hara Service Contract Act— Section 6707 of title 41, United States Code, as amended by subsection (b)(7)(A), is further amended by adding at the end the following:

“(b) Joint liability of large shareholders

“(1) In general—In any action or proceeding for a violation of this chapter, the 10 largest shareholders of a contractor, as determined by the fair value for their beneficial interest as of the beginning of the period during which the violation occurred, shall—

“(A) jointly and severally be personally liable for all violations of this chapter, and for all damages awarded and civil penalties assessed for violations of this chapter; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the contractor for the violations, with the contractor responsible for not more than 90 percent.

“(2) No reimbursement—A contractor may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(8)

Walsh-Healey Public Contracts Act— Section 6506b of title 41, United States Code, as amended by subsection (b)(8), is further amended by adding at the end the following:

“(e) Joint liability of large shareholders

“(A) jointly and severally be personally liable for all violations of this chapter, and for all damages awarded and civil penalties assessed for violations of this chapter; and

“(B) notwithstanding subparagraph (A), be personally responsible for 10 percent of any damages, civil penalties, or other restitution or fees assessed against the contractor for the violations, with the contractor responsible for not more than 90 percent.

“(2) No reimbursement—A contractor may not refund in any way any amounts paid by a shareholder under paragraph (1).”

(9)

Family and Medical Leave Act of 1993— Section 107 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2617), as amended by subsection (b)(9), is further amended by inserting after subsection (e) the following:

“(f) Joint liability of large shareholders

“(A) jointly and severally be personally liable for all violations of this Act and for all damages awarded and civil penalties assessed for violations of this Act; and

“(2) No reimbursement—An employer may not refund in any way any amounts paid by a shareholder under paragraph (1).”

Sec. 203 Franchisors

(a)

Fair Labor Standards Act of 1938—

(1)

In general— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 202(a)(1), is further amended by adding at the end the following:

“(7) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee.”

(2)

Indemnification— Section 16 of the Fair Labor Standards Act of 1938, as amended by section 202(c)(1), is further amended by adding at the end the following:

“(i) Franchisees and Franchisors

“(1) Indemnification by franchisor—An employer or entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(B) shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act.

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(A) In general—A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection.

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(b)

National Labor Relations Act—

(1)

In general— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 202(a)(2), is further amended by adding at the end the following:

“(E) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee.”

(2)

Indemnification— Section 12 of the National Labor Relations Act (29 U.S.C. 162), as amended by section 202(c)(2), is further amended by adding at the end the following:

“(g) Franchisees and Franchisors

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(c)

Occupational Safety and Health Act of 1970—

(1)

In general— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 202(a)(3), is further amended by adding at the end the following:

“(F) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee.”

(2)

Indemnification— Section 17 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 666), as amended by section 202(c)(3), is further amended by adding at the end the following:

“(o) Franchisees and Franchisors

“(1) Indemnification by franchisor—An employer or other entity that is a franchisee and is found to be in violation of this Act shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(d)

Federal Mine Safety and Health Act of 1977—

(1)

In general— Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 202(a)(4), is further amended by adding at the end the following:

“(c) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this Act with regard to a miner, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the miner.”

(2)

Indemnification— Section 118 of the Federal Mine Safety and Health Act of 1977, as amended by section 202(c)(4), is further amended by adding at the end the following:

“(c) Franchisees and Franchisors

“(1) Indemnification by franchisor—An operator or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(e)

Migrant and Seasonal Agricultural Worker Protection Act—

(1)

In general— Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 202(a)(5), is further amended by adding at the end the following:

“(4) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this Act with regard to an individual who is a migrant agricultural worker or seasonal agricultural worker employed by a farm labor contractor, agricultural employer, or agricultural association, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the migrant agricultural worker or seasonal agricultural worker.”

(2)

Indemnification— Section 505 of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 202(c)(5), is further amended by adding at the end the following:

“(c) Franchisees and Franchisors

“(1) Indemnification by franchisor—A farm labor contractor, agricultural employer, agricultural association, or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(f)

Davis-Bacon Act—

(1)

In general— Section 3144b of title 40, United States Code, as amended by section 202(a)(6), is further amended by adding at the end the following:

“(c) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this subchapter with regard to a laborer or mechanic in any case where a franchisee of the franchisor is responsible for the rights and protections of this subchapter for the laborer or mechanic.”

(2)

Indemnification— Section 3144c of title 40, United States Code, as amended by section 202(c)(6), is further amended by adding at the end the following:

“(f) Franchisees and Franchisors

“(1) Indemnification by franchisor—A contractor, subcontractor, or other entity that is found to be in violation of this subchapter and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(g)

McNamara-O'Hara Service Contract Act—

(1)

In general— Section 6701a of title 41, United States Code, as amended by section 202(a)(7), is further amended by adding at the end the following:

“(c) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this chapter with regard to a service employee in any case where a franchisee of the franchisor is responsible for the rights and protections of this chapter for the service employee.”

(2)

Indemnification— Section 6707 of title 41, United States Code, as amended by section 202(c)(7), is further amended by adding at the end the following:

“(c) Franchisees and Franchisors

“(1) Indemnification by franchisor—A contractor, subcontractor, or other entity that is found to be in violation of this chapter and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(h)

Walsh-Healey Public Contracts Act—

(1)

In general— Section 6501b of title 41, United States Code, as amended by section 202(a)(8), is further amended by adding at the end the following:

“(c) Franchisors and franchisees—A franchisor shall also be responsible for the rights and protections of this chapter with regard to an individual employed under a contract to which this chapter applies, in any case where a franchisee of the franchisor is responsible for the rights and protections of this chapter for the individual.”

(2)

Indemnification— Section 6506b of title 41, United States Code, as amended by section 202(c)(8), is further amended by adding at the end the following:

“(f) Franchisees and Franchisors

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(i)

Family and Medical Leave Act of 1993—

(1)

In general— Section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)), as amended by section 202(a)(9), is further amended by adding at the end the following:

(2)

Indemnification— Section 107 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2617), as amended by section 202(c)(9), is further amended by inserting after subsection (f) the following:

“(g) Franchisees and Franchisors

“(1) Indemnification by franchisor—An employer or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph (2) from the franchisor, in any case where the violation was—

“(A) at the behest of the franchisor;

“(B) at the direction of the franchisor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or

“(D) due to other direct or indirect control or pressure from the franchisor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a franchisee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection.

“(B) Remedy and civil penalty—If a franchisor violates subparagraph (A)—

“(i) any indemnification waiver obtained shall be null and void; and

“(ii) the franchisor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Remedy and civil penalty—Any franchisor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(j)

Federal Unemployment Tax Act (FUTA)—

(1)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 202(a)(10), is amended by adding at the end the following new paragraphs:

“(5) Paragraph (7) of section 3(d) of such Act.

“(6) Subsection (i) of section 16 of such Act.”

(2)

Effective date— The amendment made by paragraph (1) shall apply to services rendered on or after January 1, 2022.

Sec. 204 Temporary staffing companies

(a)

Responsibilities of employers utilizing employees of staffing companies and other covered employees—

(1)

Fair Labor Standards Act of 1938— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 203(a)(1), is further amended by adding at the end the following:

“(8) Employers of employees of staffing companies and other covered employees—An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1)) provided by another employer to perform labor for the employer.”

(2)

National Labor Relations Act— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 203(b)(1), is further amended by adding at the end the following:

“(F) Employers of employees of staffing companies and other covered employees—An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(c)(1))) provided by another employer to perform labor for the employer.”

(3)

Occupational Safety and Health Act of 1970— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 203(c), is further amended by adding at the end the following:

“(G) Employers of employees of staffing companies and other covered employees—An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 206(c)(1))) provided by another employer to perform labor for the employer.”

(4)

Federal Mine Safety and Health Act of 1977— Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 203(d)(1), is further amended by adding at the end the following:

“(d) Employers of employees of staffing companies and other covered employees—An operator of a coal or other mine shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 206(c)(1))) provided by another employer to perform labor as miners for the operator.”

(5)

Migrant and Seasonal Agricultural Worker Protection Act— Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 203(e), is further amended by adding at the end the following:

“(5) Employers of employees of staffing companies and other covered employees—A farm labor contractor, agricultural employer, or agricultural association shall also be responsible for the rights and protections of this Act with regard to one or more migrant agricultural workers or seasonal agricultural workers who—

“(A) are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act of 1938); and

“(B) are provided by another employer to perform labor for the farm labor contractor, agricultural employer, or agricultural association.”

(6)

Davis-Bacon Act— Section 3144b of title 40, United States Code, as amended by section 203(f)(1), is further amended by adding at the end the following:

“(d) Employers of employees of staffing companies and other covered employees—A contractor or any subcontractor shall also be responsible for the rights and protections of this subchapter with regard to one or more laborers or mechanics who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 206(c)(1))) provided by another employer to perform labor for the contractor or subcontractor under a contract to which this subchapter applies.”

(7)

McNamara-O'Hara Service Contract Act— Section 6701a of title 41, United States Code, as amended by section 203(g), is further amended by adding at the end the following:

“(d) Employers of employees of staffing companies and other covered employees—A contractor shall also be responsible for the rights and protections of this chapter with regard to one or more service employees who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 206(c)(1))) provided by another employer to perform labor for the contractor under a contract to which this chapter applies.”

(8)

Walsh-Healey Public Contracts Act— Section 6501b of title 41, United States Code, as amended by section 203(h), is further amended by adding at the end the following:

“(d) Employers of employees of staffing companies and other covered employees—A contractor shall also be responsible for the rights and protections of this chapter with regard to one or more individuals who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act (29 U.S.C. 206(c)(1))) provided by another employer to perform labor in the manufacture or furnishing of materials, supplies, articles, or equipment for the contractor under a contract to which this chapter applies.”

(9)

Family and Medical Leave Act of 1993— Section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)), as amended by section 203(i), is further amended by adding at the end the following:

“(G) Employers of employees of staffing companies and other covered employees—An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(c)(1))) provided by another employer to perform labor for the employer.”

(10)

Federal Unemployment Tax Act (FUTA)—

(A)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 203(j), is amended by adding at the end the following new paragraph:

“(7) Paragraph (8) of section 3(d) of such Act.”

(B)

Effective date— The amendment made by subparagraph (A) shall apply to services rendered on or after January 1, 2022.

(b)

Equitable treatment for employees of staffing companies and other covered employees—

(1)

In general— Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by inserting after subsection (b) the following:

“(c) Employees of staffing companies and other covered employees

“(1) Definition of covered employee—In this subsection, the term covered employee means an employee provided by another employer to perform labor for the employer, including a temporary or short-term contract employee.

“(2) Wages for covered employees

“(A) In general—No employer shall pay wages to a covered employee provided by another employer to perform labor for the employer, or allow a covered employee provided by another employer to perform labor for the employer at wages, at a rate less than the prevailing rate at which the employer for whom the labor is performed pays wages to direct employees for similar work on jobs the performance of which requires similar skill, effort, and responsibility, and which are performed under similar working conditions, except as provided in subparagraph (B).

“(B) Exceptions—An employer may pay a covered employee a wage at a rate less than the wage rate required under subparagraph (A) if—

“(i) such payment is made pursuant to—

“(I) a seniority system;

“(II) a merit system;

“(III) a system that measures rate of pay by quantity or quality of production; or

“(IV) a differential based on any lawful factor other than employment status; and

“(ii) the rate is not less than 80 percent of the prevailing rate at which the employer for whom the labor is performed pays wages to direct employees for similar work on jobs the performance of which requires similar skill, effort, and responsibility, and which are performed under similar working conditions.

“(3) Increased wages for covered employees

“(A) In general—In the case of a covered employee who is not provided with the same benefits as the employer for whom the labor is being performed provides to its direct employees, the employer for whom the labor is being performed shall pay the covered employee, or require the employer providing the covered employee to pay the covered employee, a wage rate that, subject to subparagraph (B), is not less than the sum of—

“(i) the wage rate required under paragraph (2); and

“(ii) the lesser of—

“(I) an amount equal to 25 percent of the wage rate required under paragraph (2); or

“(II) the amount the employee would have to pay to secure equivalent benefits without an employer’s assistance.

“(B) Minimum—In no case shall the minimum wage rate required under subparagraph (A) be less than 125 percent of the minimum wage rate required under subsection (a)(1).”

(2)

Limiting exemptions— Section 13 of the Fair Labor Standards Act of 1938 (29 U.S.C. 213) is amended—

(A)

in the matter preceding paragraph (1) of subsection (a), by inserting “and section 6(c)” after “this subsection”;

(B)

in subsection (d), by inserting “(except for subsection (c) of such section)” after “sections 6”; and

(C)

in subsection (f), by inserting “(except for subsection (c) of such section)” after “sections 6”.

(c)

New protections for employees of staffing companies and other covered employees—

(1)

In general— Section 9 of the Fair Labor Standards Act of 1938, as added by section 102(a)(6)(C)(i), is further amended by adding at the end the following:

“(b) Protections for employees of staffing companies and other covered employees

“(1) Definition of covered employee—In this subsection, the term covered employee has the meaning given the term in section 6(c)(1).

“(2) Registration of providing employers

“(A) In general—Each employer that provides covered employees to perform labor for another employer shall register with the Secretary each year, in accordance with this subsection and regulations of the Secretary. Each such providing employer shall include with the registration—

“(i) proof of an employer account number for the purposes of the payment of unemployment insurance contributions;

“(ii) proof of valid workers' compensation insurance in effect at the time of registration and covering all covered employees performing labor for the employer; and

“(iii) a report containing the information described in paragraph (7)(A)(ix), in the aggregate for all covered employees of the providing employer that performed labor for another employer in the preceding calendar year and disaggregated by branch office.

“(B) Registration fee—The Secretary shall assess each employer that registers under subparagraph (A) a nonrefundable registration fee equal to the sum of—

“(i) $1,000 per year; and

“(ii) an additional $250 for each branch office of the employer.

“(C) Immediate reporting of workers' compensation lapse—In any case where the workers' compensation insurance of an employer required to register under subparagraph (A) lapses—

“(i) the employer shall report the lapse to the Secretary; and

“(ii) the Secretary shall suspend the employer’s registration until the employer’s workers’ compensation insurance is reinstated.

“(D) Authority to deny, suspend, or revoke registration

“(i) In general—The Secretary shall have the authority to deny, suspend, or revoke the registration of an employer under subparagraph (A) if warranted by violations of this subsection or of any other Federal, State, or local worker protection law.

“(ii) Duty to notify—An employer whose registration under subparagraph (A) is denied, suspended, or revoked shall notify, both by telephone and in writing, each of its covered employees and each of the employers for whom its covered employees perform labor within 24 hours of any denial, suspension, or revocation of its registration.

“(E) Ineligibility—An employer requesting to register with the Secretary under subparagraph (A) is ineligible if, within the 5 years immediately preceding the date of the employer's registration request, the employer or any of its officers, directors, partners, or managers, or any owner of 25 percent or greater beneficial interest, has been involved, as officer, director, partner, manager, or owner, in another employer whose registration under such subparagraph was revoked or suspended without being reinstated.

“(F) Website—The Secretary shall create and maintain a public website that includes—

“(i) a list of all employers whose registration under subparagraph (A) is in good standing;

“(ii) a list of all employers whose registration under subparagraph (A) has been suspended, including the reason for the suspension, the date the suspension was initiated, and, if known, the date the suspension is to be lifted; and

“(iii) a list of all employers whose registration under subparagraph (A) has been revoked, including the reason for the revocation and the date the registration was revoked.

“(3) Employers for whom employees perform labor

“(A) In general—No employer for whom a covered employee is provided by another employer to perform labor may enter into a contract or any other agreement for such labor with any employer not registered under paragraph (2)(A).

“(B) Verification

“(i) Requirements for receiving employers—An employer for whom a covered employee is provided by another employer to perform labor shall verify the providing employer’s status with the Secretary of Labor before entering into a contract or other agreement with the providing employer, and at annual intervals thereafter.

“(ii) Requirements for providing employers—An employer that provides a covered employee to another employer to perform labor shall provide any employer for whom its covered employee performs labor with proof of valid registration under paragraph (2)(A) before entering into any contract or other agreement with the receiving employer.

“(C) List of registered employers—Upon request, the Secretary shall provide to any requesting party a list of employers registered under paragraph (2)(A) and an employer may rely in good faith on the information on such list provided by the Secretary.

“(4) No work restrictions—No employer that provides a covered employee to perform labor for another employer shall—

“(A) restrict the right of a covered employee to accept direct employment with an employer for whom the covered employee has performed labor;

“(B) restrict the right of an employer for whom the covered employee has performed labor to offer such direct employment; or

“(C) charge any fee, either to the covered employee or an employer for whom the covered employee has performed labor, for the covered employee converting to direct employment with such employer.

“(5) Prohibition on permatemp workers

“(A) Conversion of temporary workers to direct employees—After a covered employee performs labor for an employer for 1,040 total hours during any 12-month period, such employer shall convert the covered employee to a direct employee of such employer.

“(B) Prohibitions on evasion

“(i) No multiple contracts—An employer shall not terminate or end the agreement under which a covered employee is providing labor to the employer and then reengage such covered employee at a later date in order to evade the requirements of this subsection.

“(ii) No replacement employees—An employer shall not terminate or end the agreement under which a covered employee is providing labor to the employer and then engage a different covered employee in order to evade the requirements of this subsection.

“(6) Employment notices

“(A) In general—Whenever an employer agrees to provide 1 or more covered employees to perform labor for another employer, the providing employer shall provide to each covered employee and to the other employer, at the time of dispatch, a statement containing the following information on a form approved by the Secretary:

“(i) The name of the covered employee.

“(ii) The name, address, and phone number of the providing employer that has agreed to the dispatch.

“(iii) The name, address, and phone number of the employer for whom the covered employee will perform labor.

“(iv) The name, address, and phone number of the providing employer’s workers’ compensation insurance carrier.

“(v) The address and phone number of the nearest regional office of the Department of Labor.

“(vi) The name of the position, the nature of the work to be performed, and the types of equipment, clothing, and training that are required for the task.

“(vii) The wages offered, including the hourly rate of pay and the hourly rate of overtime pay, should overtime hours be performed.

“(viii) The designated pay day.

“(ix) The anticipated daily start times and daily end times.

“(x) The anticipated duration of the dispatch.

“(xi) The terms of transportation.

“(xii) Whether meals or equipment, or both, are provided and the cost of the meal and equipment to the covered employee, if any.

“(B) Duration—If a covered employee who is provided by an employer to perform labor for another employer is assigned to the same employer for more than 1 day, the providing employer is required to provide the employment information described in subparagraph (A) only on—

“(i) the first day of the assignment; and

“(ii) if any of the terms described in subparagraph (A) are changed, the first day of such change.

“(C) Confirmation of work sought—If an employer that provides covered employees to other employers to perform labor does not place a covered employee with an employer for whom to perform labor for a particular day, the providing employer shall, upon request, provide the covered employee with a written and signed confirmation that the covered employee sought work, which shall include the name of the providing employer, the name and address of the covered employee, and the date and time that the covered employee received the confirmation.

“(D) No covered employees during labor disputes—No employer may provide a covered employee to perform labor at any workplace where a strike, lockout, or other labor dispute exists.

“(7) Recordkeeping

“(A) Providing employer—Whenever an employer provides covered employees to perform labor for another employer, the providing employer shall keep the following records with respect to the covered employees:

“(i) The name, address, and telephone number for each employer to whom covered employees were sent to perform labor, including each worksite to which covered employees were sent, and the date of the transaction effectuating the agreement between employers.

“(ii) For each covered employee, the name, address, and specific location of the worksite, the type of labor performed, the number of hours worked, and the hourly rate of pay.

“(iii) The name and title of all individuals responsible for the transaction on behalf of the employer for whom the covered employee is performing labor.

“(iv) Any specific qualifications or attributes of an employee that are requested by the employer for whom the covered employee performs labor.

“(v) Copies of all contracts (if any) or other agreements with, and all invoices from, the employer for whom the covered employee performs labor.

“(vi) Copies of all employment notices provided in accordance with paragraph (6)(A).

“(vii) Deductions to be made from the covered employee’s compensation, made by either the providing employer or the employer for whom the covered employee performs labor, for the covered employee’s transportation, food, equipment, withheld income tax, withheld social security payments, and any other deduction.

“(viii) Documentation verifying the actual cost of any equipment or meal charged to a covered employee.

“(ix) The race and gender of each covered employee performing labor.

“(x) Any additional information as shall be required by regulation of the Secretary.

“(B) Transmission requirements

“(i) In general—The employer for whom the covered employee is performing labor shall transmit all information required under subparagraph (A)(ii) to the employer who has provided such covered employee not later than 7 days following the last day of the work week worked for which the covered employee performed work for the employer.

“(ii) Interaction with other requirements—The failure of an employer for whom a covered employee is performing labor to transmit the information required under this subparagraph shall not exempt the covered employee’s providing employer from any other recordkeeping requirements of this subsection.

“(8) Meals—If a covered employee is provided with a meal, the covered employee shall not be charged more than the actual cost of the meal. A covered employee shall not be charged for any meal not consumed by the covered employee. Purchase of a meal by a covered employee shall not be a condition of employment or performance of labor.

“(9) Transportation

“(A) In general—A covered employee may not be charged any fee for transport to or from a designated worksite by either the employer who is providing the covered employee for the performance of labor or the employer for whom the covered employee is performing labor.

“(B) Responsibility—The employer who is providing a covered employee to perform labor for another employer is responsible for the conduct and performance of any person whom the employer secures to transport the covered employee to or from a designated worksite and for the safety of the vehicle used for such transport, unless the transporter is a part of public mass transportation or a common carrier.

“(C) Referral limitations—The employer who is providing a covered employee to perform labor for another employer may not refer the covered employee to any person for transportation to or from a worksite unless that person is—

“(i) part of public mass transportation; or

“(ii) providing the transportation for no fee.

“(D) Vehicle requirements—Any motor vehicle owned or operated by an employer who is providing a covered employee to another employer that is used for the covered employee’s transportation to or from a worksite must have a seat and safety belt for each passenger and must be operated by a driver with a valid license to operate such motor vehicle.

“(E) Round-trip transportation—If a covered employee is provided with transportation to a worksite by either the covered employee’s providing employer or the employer for whom the covered employee is performing labor, then the covered employee shall be provided with transportation back to the point of origin unless the covered employee agrees prior to leaving for the worksite that the covered employee already has secured or will secure alternative transportation at the end of the covered employee’s shift.

“(F) Reimbursement and minimum compensation—In any case where an employer providing a covered employee to perform labor for another employer dispatches a covered employee to a job that does not exist, the providing employer shall—

“(i) refund the covered employee’s reasonable transportation costs; and

“(ii) pay the covered employee compensation equivalent to 2 hours of work.

“(10) Equipment—For any safety equipment, specialized clothing, accessories, or any other items required by the nature of the work, either by law, custom, or the employer for whom a covered employee is performing labor, the covered employee—

“(A) shall not be charged for the items provided by the providing employer or the employer for whom the covered employee is performing labor, unless the covered employee negligently damages or destroys such items; and

“(B) if the covered employee is required to purchase any such items, the employer for whom the covered employee is performing labor shall refund the cost of such items, including any related shipping or handling, to the covered employee.

“(11) Other charges—No covered employee shall be charged by the employer who is providing the covered employee to perform labor, or the employer for whom the covered employee is performing work, for any of the following:

“(A) Registering with the covered employee’s providing employer.

“(B) Obtaining work assignments.

“(C) Drug tests.

“(D) Background checks.

“(E) Debit cards used for payment of wages or any other method of wage payment.”

(2)

Penalties—

(A)

Prohibited acts— Section 15(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 215(a)), as amended by section 102(a)(3)(B), is further amended by adding at the end the following:

“(8) to violate any of the provisions of section 9(b).”

(B)

Penalties— Section 16(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 216(e)), as amended by section 102(a)(7)(B), is further amended by adding at the end the following:

“(9) Fines and penalties regarding temporary and other covered employees

“(A) In general—The Secretary may, after notice and an opportunity for a hearing, assess a civil penalty not to exceed $6,000 against any employer that violates any of the provisions of section 9(b) (except for paragraph (2)(A) or (3) of such section). Each violation of such section 9(b) for each day of the violation and for each covered employee shall constitute a separate and distinct violation of such section 9(b).

“(B) Registration violations—The Secretary may, after notice and an opportunity for a hearing, assess a civil penalty against any employer that fails to register with the Secretary of Labor in accordance with section 9(b)(2)(A), including any rules issued under such section, of $500 per violation. Each day during which an employer operates without registering shall be a separate and distinct violation of such section.

“(C) Civil penalty—Any employer for whom a covered employee performs labor that violates section 9(b)(3) shall be subject to a civil penalty of $500. Each day during which such employer contracts with a covered employee’s employer who is not registered with the Secretary of Labor under section 9(b)(2)(A) shall constitute a separate and distinct offense.

“(D) Revocation—The Secretary may revoke the registration of an employer under section 9(b)(2)(A) in any case where an employer willfully, as determined by the Department, commits a violation of this section within 3 years of an earlier violation of such section.”

Sec. 205 Licensors

(a)

Fair Labor Standards Act of 1938—

(1)

In general— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 204(a)(1), is further amended by adding at the end the following:

“(9) Licensors—An entity licensing its brand, name, or other likeness to an employer, or other entity responsible for the rights and protections of this Act with regard to the employees of such employer, for consideration shall also be responsible for the rights and protections of this Act with regard to the employees of such employer.”

(2)

Indemnification— Section 16 of the Fair Labor Standards Act of 1938, as amended by section 203(a)(2), is further amended by adding at the end the following:

“(j) Licensees and licensors

“(1) Indemnification by licensor—An employer or other entity that is found to be in violation of this Act shall have the right to indemnification as described in paragraph (2) from an entity licensing its brand, name, or other likeness to the employer or other entity, in any case where the violation was—

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(B) shall include a full recovery from the licensor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the licensee as a result of the violation of this Act.

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(A) In general—A licensor shall not end the license agreement with, take adverse action in relation to, or otherwise discriminate against, a licensee for pursuing indemnification under this subsection.

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(b)

National Labor Relations Act—

(1)

In general— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 204(a)(2), is further amended by adding at the end the following:

“(G) Licensors—An entity licensing its brand, name, or other likeness to an employer, or other entity responsible for the rights and protections of this Act with regard to the employees of such employer, for consideration shall also be responsible for the rights and protections of this Act with regard to the employees of such employer.”

(2)

Indemnification— Section 12 of the National Labor Relations Act (29 U.S.C. 162), as amended by section 203(b)(2), is further amended by adding at the end the following:

“(h) Licensees and licensors

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(c)

Occupational Safety and Health Act of 1970—

(1)

In general— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 204(a)(3), is further amended by adding at the end the following:

“(H) Licensors—An entity licensing its brand, name, or other likeness to an employer, or other entity responsible for the rights and protections of this Act with regard to the employees of an employer, or other entity responsible for the rights and protections of this Act with regard to the employees of such employer, for consideration shall also be responsible for the rights and protections of this Act with regard to the employees of such employer.”

(2)

Indemnification— Section 17 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 666), as amended by section 203(c)(2), is further amended by adding at the end the following:

“(p) Licensees and licensors

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(d)

Federal Mine Safety and Health Act of 1977—

(1)

In general— Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 204(a)(4), is further amended by adding at the end the following:

“(e) Licensors—An entity licensing its brand, name, or other likeness to an operator of a coal or other mine, or other entity responsible for the rights and protections of this Act with regard to the miners employed by such operator, for consideration shall also be responsible for the rights and protections of this Act with regard to the miners employed by such operator.”

(2)

Indemnification— Section 118 of the Federal Mine Safety and Health Act of 1977, as amended by section 203(d)(2), is further amended by adding at the end the following:

“(d) Licensees and licensors

“(1) Indemnification by licensor—An operator or other entity that is found to be in violation of this Act shall have the right to indemnification as described in paragraph (2) from an entity licensing its brand, name, or other likeness to the operator or other entity, in any case where the violation was—

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(e)

Migrant and Seasonal Agricultural Worker Protection Act—

(1)

In general— Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 204(a)(5), is further amended by adding at the end the following:

“(6) Licensors—An entity licensing its brand, name, or other likeness to a farm labor contractor, agricultural employer, or agricultural association, or other entity responsible for the rights and protections of this Act with regard to the migrant agricultural workers or seasonal agricultural workers of the farm labor contractor, agricultural employer, or agricultural association, for consideration shall also be responsible for the rights and protections of this Act with regard to such migrant agricultural workers and seasonal agricultural workers.”

(2)

Indemnification— Section 505 of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 203(e)(2), is further amended by adding at the end the following:

“(d) Licensees and licensors

“(1) Indemnification by licensor—A farm labor contractor, agricultural employer, agricultural association, or other entity that is found to be in violation of this Act shall have the right to indemnification as described in paragraph (2) from an entity licensing its brand, name, or other likeness to the farm labor contractor, agricultural employer, agricultural association, or other entity, in any case where the violation was—

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(f)

Davis-Bacon Act—

(1)

In general— Section 3144b of title 40, United States Code, as amended by section 204(a)(6), is further amended by adding at the end the following:

“(e) Licensors—An entity licensing its brand, name, or other likeness to a contractor or subcontractor, or other entity responsible for the rights and protections of this subchapter with regard to the laborers or mechanics of such contractor or subcontractor, for consideration shall also be responsible for the rights and protections of this subchapter with regard to such laborers or mechanics.”

(2)

Indemnification— Section 3144c of title 40, United States Code, as amended by section 203(f)(2), is further amended by adding at the end the following:

“(g) Licensees and licensors

“(1) Indemnification by licensor—A contractor, subcontractor, or other entity that is found to be in violation of this subchapter shall have the right to indemnification as described in paragraph (2) from an entity licensing its brand, name, or other likeness to the employer or other entity, in any case where the violation was—

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(g)

McNamara-O'Hara Service Contract Act—

(1)

In general— Section 6701a of title 41, United States Code, as amended by section 204(a)(7), is further amended by adding at the end the following:

“(e) Licensors—An entity licensing its brand, name, or other likeness to a contractor, or other entity responsible for the rights and protections of this chapter with regard to the service employees of such contractor, for consideration shall also be responsible for the rights and protections of this chapter with regard to such service employees.”

(2)

Indemnification— Section 6707 of title 41, United States Code, as amended by section 203(g)(2), is further amended by adding at the end the following:

“(d) Licensees and licensors

“(1) Indemnification by licensor—A contractor, subcontractor, or other entity that is found to be in violation of this chapter shall have the right to indemnification as described in paragraph (2) from an entity licensing its brand, name, or other likeness to the employer or other entity, in any case where the violation was—

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(h)

Walsh-Healey Public Contracts Act—

(1)

In general— Section 6501b of title 41, United States Code, as amended by section 204(a)(8), is further amended by adding at the end the following:

“(e) Licensors—An entity licensing its brand, name, or other likeness to a contractor, or other entity responsible for the rights and protections of this chapter with regard to individuals employed in the manufacture or furnishing of materials, supplies, articles, or equipment under a contract to which this chapter applies by such contractor, for consideration shall also be responsible for the rights and protections of this chapter with regard to such individuals.”

(2)

Indemnification— Section 6506b of title 41, United States Code, as amended by section 203(h)(2), is further amended by adding at the end the following:

“(g) Licensees and licensors

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(i)

Family and Medical Leave Act of 1993—

(1)

In general— Section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611), as amended by section 204(a)(9), is further amended by adding at the end the following:

“(H) Licensors—An entity licensing its brand, name, or other likeness to an employer for consideration shall also be responsible for the rights and protections of this Act with regard to the employees of such employer.”

(2)

Indemnification— Section 107 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2617), as amended by section 203(i)(2), by inserting after subsection (g) the following:

“(h) Licensees and licensors

“(A) at the behest of the licensor;

“(B) at the direction of the licensor;

“(C) pursuant to any policies, agreements, or contractual obligations emanating from the licensor; or

“(D) due to other direct or indirect control or pressure from the licensor.

“(2) Process for and type of indemnification—Indemnification under paragraph (1)—

“(A) may be sought by a licensee in any court of competent jurisdiction; and

“(3) Prohibition on waiver

“(A) In general—A licensor shall not require or otherwise request a licensee to waive the licensee's right to indemnification under this subsection.

“(B) Penalty—If a licensor violates subparagraph (A)—

“(i) any indemnification waiver shall be null and void; and

“(ii) the licensor shall be subject to a civil penalty of $100,000.

“(4) Prohibition on retaliation

“(B) Penalty—A licensor who violates subparagraph (A) shall be subject to a civil penalty of $100,000.”

(j)

Federal Unemployment Tax Act (FUTA)—

(1)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 204(a)(10), is amended by adding at the end the following new paragraphs:

“(8) Paragraph (9) of section 3(d) of such Act.

“(9) Subsection (j) of section 16 of such Act.”

(2)

Effective date— The amendment made by paragraph (1) shall apply to services rendered on or after January 1, 2022.

Sec. 206 Labor contractors

(a)

Fair Labor Standards Act of 1938— Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)), as amended by section 205(a)(1), is further amended by adding at the end the following:

“(10) Labor contractors—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a labor contractor, or any labor subcontractors under a labor contractor, in any case where such labor contractor or labor subcontractor is responsible for the rights and protections of this Act with respect to the employee.”

(b)

National Labor Relations Act—

(1)

In general— Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)), as amended by section 205(b), is further amended by adding at the end the following:

“(H) Labor contractors—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a labor contractor, or any labor subcontractors under a labor contractor, in any case where such labor contractor or labor subcontractor is responsible for the rights and protections of this Act with respect to the employee.”

(2)

Unfair labor practice— Section 8(a) of the National Labor Relations Act (29 U.S.C. 158(a)), as amended by section 102(b)(3)(B), is further amended by adding at the end the following:

“(8) to reject contractors in whole or in part because the contractors have workforces represented by labor organizations, including—

“(A) when the employer initially solicits bids for a contract for an as-yet-unchosen contractor to provide a good or service to the employer, by rejecting any contractor in whole or in part because the contractor's workforce is represented by a labor organization; or

“(B) when an employer has an existing contract with a contractor and the contractor’s employees are considering to organize or have chosen to organize in accordance with the rights provided under section 7, by—

“(i) ending the employer’s existing contract with the contractor;

“(ii) not renewing the employer’s existing contract with the contractor if the contract is set to expire; or

“(iii) threatening to end or not renew the employer’s existing contract with the contractor,”

(c)

Occupational Safety and Health Act of 1970— Section 3(5) of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5)), as amended by section 205(c)(1), is further amended by adding at the end the following:

“(I) Labor contractors—An employer shall also be responsible for the rights and protections of this Act with regard to an employee of a labor contractor, or any labor subcontractors under a labor contractor, in any case where such labor contractor or labor subcontractor is responsible for the rights and protections of this Act with respect to the employee.”

(d)

Federal Mine Safety and Health Act of 1977— Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 205(d), is further amended by adding at the end the following:

“(f) Labor Contractors—An employer shall also be responsible for the rights and protections of this Act with regard to a miner of a coal or other mine employed by a labor contractor, or any labor subcontractors under a labor contractor, in any case where such labor contractor or labor subcontractor is responsible for the rights and protections of this Act with respect to the miner.”

(e)

Migrant and Seasonal Agricultural Worker Protection Act— Section 4(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 205(e)(1), is further amended by adding at the end the following:

“(7) Labor Contractors—A farm labor contractor, agricultural employer, or agricultural association shall also be responsible for the rights and protections of this Act with regard to a migrant agricultural worker or seasonal agricultural worker of a labor contractor, or any labor subcontractors under a labor contractor, in any case where such labor contractor or labor subcontractor is responsible for the rights and protections of this Act with respect to the migrant agricultural worker or seasonal agricultural worker.”

(f)

Davis-Bacon Act— Section 3144b of title 40, United States Code, as amended by section 205(f)(1), is further amended by adding at the end the following:

“(f) Contractors' liability for labor subcontractors—An employer who is a contractor subject to the requirements of this subchapter shall also be responsible for the rights and protections of this subchapter with regard to an employee of any labor subcontractor of the contractor, or any labor subcontractors under a labor subcontractor, in any case where—

“(1) the employee is performing work under a contract to which this subchapter applies; and

“(2) such labor subcontractor, or labor subcontractor of a labor subcontractor, is responsible for the rights and protections of this subchapter with respect to a laborer or mechanic.”

(g)

McNamara-O'Hara Service Contract Act— Section 6701a of title 41, United States Code, as amended by section 205(g), is further amended by adding at the end the following:

“(f) Contractors' liability for labor subcontractors—An employer who is a contractor subject to the requirements of this chapter shall also be responsible for the rights and protections of this chapter with regard to an employee of any labor subcontractor of the contractor, or any labor subcontractors under a labor subcontractor, in any case where—

“(1) the employee is performing work under a contract to which this chapter applies; and

“(2) such labor subcontractor, or labor subcontractor of a labor subcontractor, is responsible for the rights and protections of this chapter with respect to a service employee.”

(h)

Walsh-Healey Public Contracts Act— Section 6501b of title 41, United States Code, as amended by section 205(h), is further amended by adding at the end the following:

“(1) the employee is employed in the manufacture or furnishing of materials, supplies, articles, or equipment under a contract to which this chapter applies; and

“(2) such labor subcontractor, or labor subcontractor of a labor subcontractor, is responsible for the rights and protections of this chapter with respect to the employee.”

(i)

Family and Medical Leave Act of 1993— Section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611), as amended by section 205(i), is further amended by adding at the end the following:

(j)

Federal Unemployment Tax Act (FUTA)—

(1)

In general— Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 205(j), is amended by adding at the end the following new paragraph:

“(10) Paragraph (10) of section 3(d) of such Act.”

(2)

Effective date— The amendment made by paragraph (1) shall apply to services rendered on or after January 1, 2022.

Sec. 207 Supply chain responsibility plan

(a)

Fair Labor Standards Act of 1938—

(1)

Supply chain responsibility plan— Section 11 of the Fair Labor Standards Act of 1938 (29 U.S.C. 211) is amended by adding at the end the following:

“(e) Supply chain responsibility plan

“(1) Definitions—In this subsection:

“(A) Covered employer—The term covered employer means an employer that employs 100 or more employees.

“(B) Covered laws—The term covered laws means all of the following:

“(i) This Act.

“(ii) The National Labor Relations Act.

“(iii) The Occupational Safety and Health Act of 1970.

“(iv) The Federal Mine Safety and Health Act of 1977.

“(v) The Migrant and Seasonal Agricultural Worker Protection Act.

“(vi) Subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”).

“(vii) Chapter 67 of title 41, United States Code (commonly known as the “McNamara-O'Hara Service Contract Act”).

“(viii) Chapter 65 of title 41, United States Code (commonly known as the “Walsh-Healey Public Contracts Act of 1936”).

“(ix) The Family and Medical Leave Act of 1993.

“(x) Violations of State law required under section 3304 of the Internal Revenue Code of 1986.

“(xi) The applicable labor laws of any country in which an employer that is part of a covered employer’s supply chain operates, with respect to employees employed in such country.

“(2) Development of plan—Each covered employer shall develop and carry out a supply chain responsibility plan described in paragraph (3) that describes how the employer will attempt to ensure that the employer’s primary supply chain does not include any employer that regularly violates—

“(A) an individual covered law; or

“(B) the covered laws, when considered as a whole.

“(3) Contents—Each supply chain responsibility plan shall include, at a minimum—

“(A) an assessment of—

“(i) the violations under each covered law by each employer with more than 19 employees in the covered employer’s supply chain; and

“(ii) the violations under each covered law by each employer that provides a large volume or dollar amount of the covered employer’s supply chain;

“(B) a plan for—

“(i) removing from the covered employer’s supply chain each employer described in subparagraph (A) that regularly violates—

“(I) an individual covered law; or

“(II) the covered laws, when considered as a whole; or

“(ii) if clause (i) is not possible with respect to a particular employer described in subparagraph (A) due to an extremely limited number of employers that could fulfill specific portions of the covered employer’s supply chain, utilizing the leverage that the covered employer has as a purchaser to pressure the particular employer to improve compliance with the covered laws;

“(C) a list of the organizations that the covered employer has identified to assist the covered employer in this process, including workers’ rights advocates; and

“(D) any other information the Secretary determines necessary.

“(4) Submission—Each covered employer shall annually submit the supply chain responsibility plan to the Secretary and shall post the most recent plan publicly on the covered employer’s website.”

(2)

Penalties— Section 16(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 216(e)), as amended by section 204(c)(2)(B), is further amended by adding at the end the following:

“(10) Penalties for violations regarding supply chain responsibility plans—Any person who violates section 11(e)(3) by not submitting or posting a complete supply chain responsibility plan each year shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(b)

National labor relations act—

(1)

Supply chain responsibility plan— Section 8 of the National Labor Relations Act (29 U.S.C. 158), as amended by section 102(b)(5), is further amended by adding at the end the following:

“(i) Supply chain responsibility plan—It shall be an unfair labor practice for an employer who is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)), to fail to annually—

“(1) submit, as part of the covered employer's supply chain responsibility plan under section 11(e) of such Act, the information required under such Act that relates to this Act; and

“(2) include such information in the plan posted publicly on the covered employer’s website.”

(2)

Penalties— Section 12 of the National Labor Relations Act (29 U.S.C. 162), as amended by section 102(b)(7)(B), is further amended by inserting after subsection (c) the following:

“(d) Civil penalty for failure To submit a complete supply chain responsibility plan—Any person who violates section 8(i) shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(c)

Occupational Safety and Health Act of 1970—

(1)

Supply chain responsibility plan— Section 5 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 654) is amended by adding at the end the following:

“(c) Supply chain responsibility plan—An employer who is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)), shall annually—

“(1) submit, as part of the employer's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this Act; and

“(2) include such information in the plan posted publicly on the employer’s website.”

(2)

Penalties— Section 17 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 666), as amended by section 205(c)(2), is further amended by inserting after subsection (k) the following:

“(l) Penalties for violations regarding supply chain responsibility plans—Any person who violates section 5(c) shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(d)

Federal Mine Safety and Health Act of 1977—

(1)

Supply chain responsibility plan— Section 109 of the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 819) is amended—

(A)

in the section heading, by inserting “; supply chain responsibility plans” after “decisions”; and

(B)

by adding at the end the following:

“(e) Supply chain responsibility plans—Each operator that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)), shall annually—

“(1) submit, as part of the operator's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this Act; and

“(2) include such information in the plan posted publicly on the operator's website.”

(2)

Penalties— Section 110 of the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 820), as amended by section 102(d)(6)(B), is further amended by inserting after subsection (j) the following:

“(k) Civil penalty for failure To submit a supply chain responsibility plan—Any operator who violates section 109(e) shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(e)

Migrant and Seasonal Agricultural Worker Protection Act—

(1)

Supply chain responsibility plan— Title IV of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1841 et seq.), as amended by section 102(e)(3)), is further amended by adding at the end the following:

“406. Supply chain responsibility plan

“(a) Definition of responsible entity—In this section, the term responsible entity means a farm labor contractor, agricultural employer, or agricultural association, that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)).

“(b) Supply chain responsibility plans—Each responsible entity shall annually—

“(1) submit, as part of the responsible entity's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this Act; and

“(2) include such information in the plan posted publicly on the responsible entity's website.”

(2)

Penalties— Section 503(a) of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1853(a)), as amended by section 102(e)(6)(B), is further amended by adding at the end the following:

“(5) Penalties for violations regarding supply chain responsibility plans—Any person who violates section 406(b) shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(f)

Davis-Bacon Act—

(1)

Supply chain responsibility plan— Subchapter IV of chapter 31 of title 40, United States Code, as amended by this Act, is further amended by inserting after section 3143 the following:

“3143a. Supply chain responsibility plan

“(a) Covered contractor—In this section, the term covered contractor means a contractor or subcontractor—

“(1) for a contract subject to the requirements of this subchapter; and

“(2) that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)).

“(b) In general—Each covered contractor shall annually—

“(1) submit, as part of the covered contractor's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this subchapter; and

“(2) include such information in the plan posted publicly on the covered contractor's website.”

(2)

Penalties— Section 3144c of title 40, United States Code, as amended by section 204(f)(2), is further amended by inserting after subsection (b) the following:

“(c) Penalties for violations regarding supply chain responsibility plans—Any person who violates section 3143a of this title shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(g)

McNamara-O'Hara Service Contract Act— Chapter 67 of title 41, United States Code, as amended by section 202(b)(7)(A), is further amended by inserting after section 6704 the following:

“6705. Supply chain responsibility plan

“(a) Covered contractor—In this section, the term covered contractor means a contractor or subcontractor—

“(1) for a contract subject to the requirements of this chapter; and

“(2) that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)).

“(b) In general—Each covered contractor shall annually—

“(1) submit, as part of the covered contractor's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this chapter; and

“(2) include such information in the plan posted publicly on the covered contractor's website.

“(c) Penalties for violations regarding supply chain responsibility plans—Any person who violates subsection (b) of this section shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(h)

Walsh-Healey Public Contracts Act of 1936—

(1)

Supply chain responsibility plan— Chapter 65 of title 41, United States Code, is further amended by inserting after section 6502 the following:

“6502a. Supply chain responsibility plan

“(a) Covered contractor—In this section, the term covered contractor means a contractor or subcontractor—

“(1) for a contract subject to the requirements of this chapter; and

“(2) that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)).

“(b) In general—Each covered contractor shall annually—

“(1) submit, as part of the covered contractor's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this chapter; and

“(2) include such information in the plan posted publicly on the covered contractor's website.”

(2)

Penalties— Section 6506a of title 41, United States Code, as amended by section 202(c)(8), is further amended by inserting after subsection (b) the following:

“(c) Penalties for violations regarding supply chain responsibility plans—Any person who violates section 6502a shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(i)

Family and Medical Leave Act of 1993— Section 109 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2619) is amended—

(1)

in the section heading, by inserting “; supply chain responsibility plan” after “Notice”;

(2)

by striking “In general.—Each” and inserting the following:

“(1) In general—Each”

(3)

by redesignating subsection (b) as paragraph (2) of subsection (a), and aligning the margins of such paragraph with the margins of paragraph (1);

(4)

in paragraph (2) (as so redesignated), by striking “this section” and inserting “this subsection”; and

(5)

by adding at the end the following:

“(b) Supply chain responsibility plan

“(1) In general—Each employer that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)), shall annually—

“(A) submit, as part of the employer's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this Act; and

“(B) include such information in the plan posted publicly on the employer’s website.

“(2) Penalty—Any person who violates paragraph (1) shall be subject to a civil penalty of $50,000 for each month of noncompliance.”

(j)

Federal Unemployment Tax Act (FUTA)—

(1)

State law requirement— Section 3304 of the Internal Revenue Code of 1986 (relating to approval of State unemployment compensation laws) is amended—

(A)

in subsection (a)—

(i)

in paragraph (18), by striking “and” at the end;

(ii)

by redesignating paragraph (19) as paragraph (20);

(iii)

by inserting after paragraph (18) the following new paragraph:

“(19) each employer that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)) is required to comply with subsection (h); and”

(iv)

by adding at the end the following:

“(h) Supply chain responsibility plans—Each employer that is a covered employer, as defined in section 11(e)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(e)(1)), shall annually—

“(1) submit, as part of the employer's supply chain responsibility plan under section 11(e) of such Act, the information required under such section that relates to this Act; and

“(2) include such information in the plan posted publicly on the operator's website.”

(2)

Effective date— The amendments made by paragraph (1) shall apply to weeks of unemployment beginning on or after the earlier of—

(A)

the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or

(B)

January 1, 2022.

Sec. 208 Conforming amendments

(a)

Davis-Bacon Act— The table of sections of subchapter IV of chapter 31 of title 40, United States Code, as amended by section 102(f)(7), is further amended—

(1)

by inserting after the item relating to section 3413 the following:

(2)

by inserting after the item relating to section 3144a the following:

(b)

McNamara-O'Hara Service Contract Act— Chapter 67 of title 41, United States Code, is amended—

(1)

in the table of sections—

(A)

by redesignating the items relating to sections 6705, 6706, and 6707 as the items relating to sections 6706, 6708, and 6709, respectively;

(B)

by inserting after the item relating to section 6701 the following:

(C)

by inserting after the item relating to section 6704 the following:

(D)

by inserting after the item relating to section 6706 the following:

(2)

in section 6704(b), by striking “sections 6705 to 6707(d)” and inserting “sections 6706 to 6709(d)”; and

(3)

in section 6705(d), by striking “section 6707(a)–(d)” and inserting “section 6709(a)–(d)”.

(c)

Walsh-Healey Public Contracts Act— The table of sections for chapter 65 of title 41, United States Code, as amended by section 102(g)(7), is further amended—

(1)

by inserting after the item relating to section 6501a the following:

(2)

by inserting after the item relating to section 6502 the following:

Lineage

Sep 24, 2020viewing Introduced in House Ms. DeLauro introduced the following bill; which was referred to the Committee on Education and Labor, and in addition to the Committees on Oversight and Reform, House Administration, and Ways and Means, 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

Title II — Small business protection through shared responsibility for workers’ rights

II Small business protection through shared responsibility for workers’ rights

Sec. 201 General shared responsibility for workers’ rights

Sec. 202 Massive corporations

Sec. 203 Franchisors

Sec. 204 Temporary staffing companies

Sec. 205 Licensors

Sec. 206 Labor contractors

Sec. 207 Supply chain responsibility plan

Sec. 208 Conforming amendments

Cite this provision

Incoming references