2000
[DOCID: f:h1457ih.txt]
107th CONGRESS
1st Session
H. R. 1457
To provide for livable wages for Federal Government workers and workers
hired under Federal contracts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 4, 2001
Mr. Gutierrez (for himself, Mr. Serrano, Ms. Brown of Florida, Mr.
Bonior, Mr. Frank, Mr. Blagojevich, Mr. Owens, Mr. Cummings, Mr.
McDermott, Mr. Farr of California, Mr. Capuano, Mr. Hilliard, Mr.
Jackson of Illinois, Mr. Matsui, Mr. Costello, Mr. McNulty, Mr.
Thompson of Mississippi, Mr. Rush, Ms. Velazquez, Ms. Jackson-Lee of
Texas, Mr. McGovern, Mr. Payne, Mrs. Mink of Hawaii, Ms. Schakowsky,
Mr. Evans, Ms. Waters, Mr. Wynn, Mr. Filner, Mr. Reyes, Ms. Norton, Mr.
Stark, Mr. Nadler, Ms. McKinney, Mr. Fattah, Mr. Conyers, Ms. Baldwin,
Mr. Rodriguez, Mr. Kucinich, Mr. George Miller of California, Mr.
Jefferson, Ms. Woolsey, Mr. Maloney of Connecticut, Ms. Lee, Ms.
Pelosi, Mr. Strickland, Mr. Towns, Ms. Roybal-Allard, Ms. Millender-
McDonald, Mr. Ortiz, Mr. Baca, Mr. Clay, Mr. Moakley, Mrs. Jones of
Ohio, Mr. Lipinski, Mr. Engel, Mr. Hoeffel, Mrs. Christensen, Ms.
Kilpatrick, Ms. Carson of Indiana, Mr. DeFazio, Mr. Gonzalez, Mr.
Hinchey, Mrs. Napolitano, Mr. Phelps, Mr. Brady of Pennsylvania, and
Mr. Green of Texas) introduced the following bill; which was referred
to the Committee on Government Reform, and in addition to the Committee
on Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for livable wages for Federal Government workers and workers
hired under Federal contracts.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Living Wage Responsibility
Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) According to data from fiscal year 1999, approximately
162,000 Federal contract workers did not earn a wage sufficient
to lift a family of four out of poverty. Just under 60 percent
of these poorly paid workers work for large firms and 62
percent work on Department of Defense contracts. These workers
represent 11 percent of the total 1.4 million Federal contract
workers in the United States.
(2) As of September 2000, 14,356 workers employed by the
Federal Government earned less than the poverty level for a
family of four.
(3) A majority of workers earning less than a living wage
are adult females working full-time. A disproportionate number
of workers earning less than a living wage are minorities.
(4) The Federal Government provides billions of dollars to
businesses each year, through spending programs, grants and
Government-favored financing.
(5) In fiscal year 1999, the Federal Government awarded
contracts worth over $208 billion.
(6) Congress must ensure that Federal dollars are used
responsibly to improve the economic security and well-being of
Americans across the country.
SEC. 3. POVERTY-LEVEL WAGE.
(a) General Rule.--Notwithstanding any other law that does not
specifically exempt itself from this Act and except as provided in
subsection (b), the Federal Government and any employer under a Federal
contract for an amount exceeding $10,000 (or a subcontract under such a
contract) shall pay to each of their respective workers--
(1) an hourly wage (or salary equivalent) sufficient for a
worker to earn, while working 40 hours a week on a full-time
basis, the amount of the Federal poverty level for a family of
four (as published in the Federal Register by the Department of
Health and Human Services under the authority of section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)));
and
(2) an additional amount, determined by the Secretary based
on the locality in which a worker resides, sufficient to cover
the costs to such worker to obtain any fringe benefits not
provided by the worker's employer.
(b) Exemptions.--Subsection (a) does not apply to the following:
(1) A small-business concern (as that term is used in
section 3 of the Small Business Act (15 U.S.C. 632)).
(2) A nonprofit organization exempt from Federal income tax
under section 501(c) of the Internal Revenue Code of 1986 (26
U.S.C. 501(c)), if the ratio of the total wages of the chief
executive officer of such organization to the wages of the
full-time equivalent of the lowest paid worker is not greater
than 25 to 1.
(c) Retaliation Prohibited.--It shall be unlawful for any employer
subject to subsection (a) to terminate or suspend the employment of a
worker on the basis of such worker's allegation of a violation of
subsection (a).
(d) Contract Requirement.--Any contract subject to subsection (a)
shall contain a provision requiring the Federal contractor to ensure
that any worker hired under such contract (or a subcontract thereof)
shall be paid in accordance with subsection (a).
SEC. 4. ENFORCEMENT BY SECRETARY.
(a) In General.--If the Secretary determines (in a written finding
setting forth a detailed explanation of such determination), after
notice and an opportunity for a hearing on the record, that a Federal
contractor (or any subcontractor thereof) subject to section 3 has
engaged in a pattern or practice of violations of section 3, the
following shall apply to such Federal contractor:
(1) Contract cancellation.--After final adjudication of a
pattern or practice of violations, the United States may cancel
any contract (or the remainder thereof) with the Federal
contractor that is a part of the pattern or practice of
violations.
(2) Restitution.--A Federal contractor whose contract is
cancelled under paragraph (1) shall be liable to the United
States in an amount equal to the costs to the Government in
obtaining a replacement contractor to cover the remainder of
any contract cancelled under paragraph (1).
(3) Contract ineligibility.--After final adjudication of a
pattern or practice of violations, the Federal contractor shall
be ineligible to enter into, extend, or renew a contract with
the United States for a period of five years after the date of
such adjudication.
(4) Publication.--Not later than 90 days after final
adjudication of a pattern or practice of violations, the
Secretary shall publish in the Federal Register a notice
describing the ineligibility of the Federal contractor under
paragraph (3).
(b) Safe Harbor.--Subsection (a) shall not apply if--
(1) the Federal contractor has entered into a consent
agreement with the Secretary with regard to a pattern or
practice of violations of section 3 and has paid to any
aggrieved workers all wages due them, to the satisfaction of
the Secretary; or
(2) the Secretary determines, after consultation with the
affected Government entity, that cancellation or debarment
under subsection (a) would not be in the best interests of the
Nation or of such Government entity.
(c) Judicial Review.--Any Federal contractor aggrieved by an
adverse determination of the Secretary under subsection (a) may seek
review
7a3
of such determination in an appropriate court.
SEC. 5. EMERGENCIES.
The President may suspend the provisions of this Act in times of
emergency.
SEC. 6. PRIVATE RIGHT OF ACTION.
(a) Action.--A worker aggrieved by a violation of section 3 may, in
a civil action, recover appropriate relief. A civil action under this
section shall be filed not later than 3 years after the commission of
such violation. A civil action may not be brought under this section if
an employer subject to section 3 has paid or reinstated the worker as a
result of an administrative action under section 4.
(b) Relief.--In this section, the term ``appropriate relief''
means--
(1) injunction of a violation of section 3;
(2) actual damages or, if the court finds that the employer
willfully violated section 3, three times actual damages;
(3) reasonable attorney fees and the costs of the action;
and
(4) any other relief the court deems appropriate in the
circumstances of the case.
SEC. 7. RULEMAKING.
The Secretary shall make rules to carry out this Act, which shall
take effect not later than 120 days after the date of enactment of this
Act.
SEC. 8. DEFINITIONS.
In this Act:
(1) The term ``employer'' means a person who has economic
power to set a worker's terms and conditions of employment,
regardless of the formality of an employment relationship.
(2) The term ``fringe benefits'' means--
(A) medical or hospital care or contributions to a
health insurance plan;
(B) contributions to a retirement plan;
(C) life insurance;
(D) disability insurance; and
(E) vacation and holiday pay.
(3) The term ``Secretary'' means the Secretary of Labor.
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