Section 1 Short title
This Act may be cited as the “No Tax Deductions for Workplace Harasser Buyouts Act”.
No Tax Deductions for Workplace Harasser Buyouts Act
A BILL
To amend the Internal Revenue Code of 1986 to deny a deduction for severance payments made in connection with workplace harassment.
Sec. 2 Denial of deduction for severance payments made in connection with workplace harassment
In general— Section 162 of the Internal Revenue Code of 1986 is amended by redesignating subsection (s) as subsection (t) and by inserting after subsection (r) the following new subsection:
“(s) Denial of deduction for severance payments made in connection with workplace harassment—No deduction shall be allowed under this chapter for any amount paid or incurred to any employee in connection with the termination of employment of such employee if a factor in such termination was the performance, or alleged performance, by such employee of sexual assault, sexual harassment, sexual misconduct, or workplace harassment based on race, color, national origin, religion, sex (including pregnancy, sexual orientation, or gender identity), age (40 or older), disability, genetic information (including family medical history), or any combination of such factors.”
Effective date— The amendments made by this section shall apply to amounts paid or incurred in taxable years ending after the date of the enactment of this Act.