Patriotic Corporations of America Act of 2021

“3310. Additional requirements for Department of Defense contracts

“(a) Labor—The Secretary of Defense may not award a contract unless the following requirements are met:

“(1) The offeror agrees for the duration of the contract to pay each employee of the offeror a wage of not less than the greater of—

“(A) $15, increased on an annual basis from such amount by the annual percentage increase, if any, in the median hourly wage of all employees as determined by the Bureau of Labor Statistics; or

“(B) the amount equal to the sum of—

“(i) the wage rate in effect under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); and

“(ii) the amount that is 10 percent of such wage rate.

“(2) The offeror agrees to sign—

“(A) a neutrality agreement, effective during the period of the contract, with respect to efforts to form a labor organization (as defined in section 2 of the National Labor Relations Act (29 U.S.C. 152)); and

“(B) an agreement, effective during the period of the contract, not to hire employees to replace any employee engaged in any strike, picketing, or other concerted refusal to work or to close a business in response to such a strike, picketing, or other refusal to work.

“(3) The Secretary of Defense, in consultation with the National Labor Relations Board, determines that the offeror has not been found in violation or settled a claim for a violation of the right of an employee to organize under a law, including regulations thereof, administered by the National Labor Relations Board, or of a State regulation determined relevant by the Secretary of Defense, in consultation with the Secretary of Labor.

“(4) The offeror provides each employee at least seven days of paid sick leave, seven days of paid family and medical leave, and seven days of paid vacation per year.

“(5) No assessable payment has been imposed, with respect to the offeror, under section 4980H of the Internal Revenue Code of 1986, with respect to any of the 12 months ending before the date on which the contract is awarded.

“(6) The offeror submits to the Secretary of Defense an actionable plan to address natural disasters and health crises, including policies and plans for—

“(A) the determination of essential employees;

“(B) increased essential employee pay and quarantine pay;

“(C) paid family and medical leave;

“(D) temporary layoffs;

“(E) whistleblower protections; and

“(F) emergencies in the case of rapidly changing circumstances.

“(7) The offerer submits to the Secretary of Defense an actionable plan to recruit and promote people of color, women, LGBTQ+ people, people with disabilities, and veterans.

“(b) Environmental sustainability—The Secretary of Defense may not award a contract unless the Secretary, in consultation with the Administrator of the Environmental Protection Agency, determines that the offeror has not, within the previous 5 years—

“(1) paid a penalty that is greater than $100,000 for a violation of a law, including regulations thereof, administered by Environmental Protection Agency; or

“(2) settled a claim in connection with such a violation for an amount that is greater than $100,000.

“(c) Taxes—The head of an executive agency may not award a contract unless the offeror—

“(1) maintains headquarters in the United States;

“(2) has Federal income tax liability which exceeds the offeror’s Federal income tax credits (other than such credits which constitute cash payments of tax by the offeror);

“(3) is neither an expatriated entity (as defined in subparagraph (A) of section 7874(a)(2) of the Internal Revenue Code of 1986) nor a surrogate foreign corporation (as defined in subparagraph (B) of such section); and

“(4) discloses financial performance and tax information on a country-by-country basis.

“(d) Private equity firm applicability—In the case that a private equity firm holds a controlling interest in an offeror, if the Secretary of Defense determines, in consultation with the Secretary of Labor, the National Labor Relations Board, and the Administrator of the Environmental Protection Agency, that one company in which the private equity firm has a controlling interest violated subsection (a)(3) or (b), the Secretary shall bar any company in which the private equity firm had a controlling interest at the time of violation from contracting with the Department of Defense for a period of 5 years.

“(e) Employee defined—For the purposes of this section, the term employee includes an independent contractor.”

“3325. Preference for contracts from offerors that meet certain labor requirements

“(a) In general—The Secretary of Defense shall establish a preference for contracting with an offeror that meets any of the following qualifications:

“(1) The offeror does not have a pay ratio of more than 100 to 1.

“(2) The offeror does not outsource jobs outside of the United States.

“(3) If the offeror has a Board of Directors, the offeror has at least one seat on such Board of Directors for a representative elected by the employees of the offeror.

“(4) The offeror contributes at least 5 percent of the payroll to a portable pension fund for employees of the offeror.

“(5) The offeror provides at least 2 percent of stock to employees of the offeror every year until the company is at least 20 percent owned such employees.

“(6) The offeror has a collective bargaining agreement with employees of the offeror.

“(7) Women and people of color make up at least 40 percent of top executives of the offeror and, if the offeror has a Board of Directors, of the members of such Board.

“(8) The offeror publicly discloses the gender and racial composition, and any pay gaps that exist, of the employees of the offeror.

“(9) The offeror provides an affirmative action program (as defined in section 30.4 of title 29, Code of Federal Regulations, or a successor regulation) to ensure equal opportunity in apprenticeships.

“(10) The offeror documents assistance provided to each individual with an intellectual or developmental disability and any other individual with a significant disability employed by the offeror under an certificate under section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c)) to transition to opportunities for competitive integrated employment, and that such individuals are employed in such opportunities for not less than 20 hours per week, on average.

“(b) Application of preference—The Secretary of Defense shall apply subsection (a) by providing greater preference to an offeror that meets a greater number of the qualifications under paragraphs (1) through (10) of such subsection.

“(c) Definitions—For the purposes of this section—

“(1) the terms developmental disability and integrated have the meaning given the terms in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002);

“(2) the term employee includes an independent contractor; and

“(3) the term pay ratio means the ratio described in section 229.402(u)(1)(iii) of title 17, Code of Federal Regulations (or any successor regulation), except that if the highest compensated employee of the corporation is not the principal executive officer, the ratio shall be determined based on the compensation of such highest compensated employee.”