[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1563 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1563

 To provide assistance to employees who are subject to a plant closing 
 or mass layoff because their work is transferred to a foreign country 
   that has low wages or unhealthy working conditions, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 18 (legislative day, October 13), 1993

  Mr. Riegle introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
 To provide assistance to employees who are subject to a plant closing 
 or mass layoff because their work is transferred to a foreign country 
   that has low wages or unhealthy working conditions, and for other 
                               purposes.

    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 ``American Jobs Protection Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) During the last 2 decades, millions of jobs in the 
        United States have been transferred by businesses to foreign 
        countries to take advantage of the low wages and lack of labor 
        standards in those countries.
            (2) Millions of additional jobs in the United States are at 
        risk of such a transfer during the 1990s, particularly if the 
        North American Free Trade Agreement is approved by the 
        Congress.
            (3) The threat of the transfer of work to low-wage foreign 
        countries suppresses wages and benefits to workers in the 
        United States and thereby lessens the purchasing power of 
        middle class families in the United States.
            (4) The transfer of jobs to low-wage foreign countries 
        imposes a severe burden upon the individual workers who are 
        dislocated by such transfers and the communities that are 
        affected by such transfers.
            (5) The provision of income, continued health and pension 
        benefits, and job training assistance to such dislocated 
        workers would significantly ease the burdens caused by the 
        transfer of jobs to low-wage foreign countries.
            (6) The transfer of jobs to take advantage of the low wages 
        and lack of labor standards in foreign countries is detrimental 
        to the interests of the United States because such transfers 
        are based on the incorrect premise that the employees of 
        businesses constitute a cost to be lowered and not an asset 
        that should be developed and utilized.
            (7) The best chance for the United States to meet 
        international competition in the future is to focus on a 
        competitive strategy that emphasizes high-wage, high-skill 
        employment as opposed to employment that competes 
        internationally on the basis of low wages.
    (b) Purposes.--The purposes of this Act are--
            (1) to discourage the transfer of work to low-wage foreign 
        countries; and
            (2) to require businesses that transfer work to low-wage 
        foreign countries to mitigate the costs of the dislocation to 
        workers and communities subject to that dislocation.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions apply:
            (1) Affected employees.--The term ``affected employees'' 
        means employees who may reasonably be expected to experience an 
        employment loss as a consequence of a proposed plant closing or 
        mass layoff.
            (2) Employer.--The term ``employer'' means any business 
        enterprise that employs--
                    (A) 25 or more employees, excluding part-time 
                employment; or
                    (B) 25 or more employees who in the aggregate work 
                at least 1,000 hours per week.
        Such term includes all business entities that have substantial 
        ownership interest, substantial management authority or 
        substantial control over the terms and conditions of employment 
        of employees at a site of employment subject to an employment 
        loss.
            (3) Employment loss.--The term ``employment loss'' means--
                    (A) an employment termination, other than a 
                discharge for cause, voluntary departure, or 
                retirement;
                    (B) a layoff exceeding 6 months;
                    (C) a reduction in hours of work of more than 50 
                percent during each month of any 6-month period; or
                    (D) a reduction in salary of more than 33 percent 
                during each month of any 6-month period.
            (4) Group health plan.--The term ``group health plan'' 
        means an employee welfare benefit plan providing medical care 
        (as defined in section 213(d) of the Internal Revenue Code of 
        1986) to participants or beneficiaries or dependents, directly 
        or through insurance, reimbursement, or otherwise.
            (5) Location assistance.--The term ``location assistance'' 
        includes any subsidy, infrastructure development or 
        improvement, tax relief, site preparation assistance, hiring 
        and training assistance, or other economic benefit offered by a 
        State or unit of local government to induce an employer to 
        locate at, remain at, or expand its operations at a site of 
        employment within the jurisdiction of such State or political 
        subdivision.
            (6) Mass layoff.--The term ``mass layoff'' means a 
        reduction in force that--
                    (A) is not the result of a plant closing; and
                    (B) results in an employment loss at a single site 
                of employment, or one or more facilities or operating 
                units within a single site of employment, during any 
                30-day period for at least 12 employees (excluding any 
                part-time employees).
            (7) Part-time employee.--The term ``part-time employee'' 
        means an employee who is employed for an average of fewer than 
        20 hours per week or who has been employed for fewer than 6 of 
        the 12 months preceding the date on which notice is required.
            (8) Plant closing.--The term ``plant closing'' means the 
        permanent or temporary shutdown of a single site of employment, 
        or one or more facilities or operating units within a single 
        site of employment, if the shutdown results in an employment 
        loss at the single site of employment during any 30-day period 
        for 12 or more employees, excluding part-time employees.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (10) Site of employment.--The term ``site of employment'' 
        means any factory, mine, business office, facility, or other 
        operating unit, or the functional equivalent thereof.

SEC. 4. LIMITATION ON WORK TRANSFER TO LOW-WAGE FOREIGN COUNTRIES.

    (a) In General.--An employer may not implement a plant closing or 
mass layoff at a site of employment due to a transfer of work to a low-
wage foreign country which occurs 1 year before or after such closing 
or mass layoff (as described in subsection (b)) unless the employer 
provides notice at least 180 days before such closing or mass layoff in 
accordance with section 5 and provides benefits to employees in 
accordance with section 6.
    (b) Transfer of Work Described.--
            (1) In general.--Except as provided in paragraph (2), work 
        shall be considered to be transferred to a low-wage foreign 
        country for purposes of subsection (a) if the employer--
                    (A) increases the amount of work performed at one 
                or more sites of employment in one or more low-wage 
                foreign countries and such work is substantially 
                similar to the work performed at the site of employment 
                referred to in subsection (a); or
                    (B) increases the amount of products or services 
                that are imported from one or more low-wage foreign 
                countries and such products or services are 
                substantially similar to the products or services 
                produced or provided at the site of employment referred 
                to in subsection (a).
            (2) Exception.--If an employer who orders a plant closing 
        or mass layoff at a site of employment referred to in 
        subsection (a) proves that the increase in--
                    (A) work (described in paragraph (1)(A)) that is 
                performed in a low-wage foreign country; or
                    (B) products or services (described in paragraph 
                (1)(B)) that are imported to the United States from a 
                low-wage foreign country,
        is not related to the plant closing or mass layoff at such site 
        of employment, the employer shall not be required to provide 
        notice in accordance with section 5 or benefits to the 
        employees in accordance with section 6.
            (3) Construction.--For purposes of paragraph (1), if an 
        increase described in such paragraph is carried out by any 
        person that owns at least 10 percent of an employer described 
        in subsection (a) or by any person, 10 percent of which is 
        owned by such employer, such employer shall be considered to 
        have carried out such increase.
    (c) Publication in the Federal Register.--The Secretary shall 
publish annually in the Federal Register the name of each low-wage 
foreign country as defined in subsection (d), as determined under 
regulations developed by the Secretary.
    (d) Low-Wage Foreign Country Defined.--For purposes of this 
section, the term ``low-wage foreign country'' means--
            (1) a country in which the average wage is less than 50 
        percent of the average wage in the United States, as determined 
        by the Secretary; or
            (2) a country in which the employment standards relating to 
        the payment of overtime compensation, child labor, or employee 
        safety and health that are in effect and enforced in such 
        country are substantially less effective than the standards 
        under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
        seq.) and the Occupational Safety and Health Act of 1970 (29 
        U.S.C. 651 et seq.), as determined by the Secretary.

SEC. 5. NOTICE REQUIREMENTS.

    (a) In General.--
            (1) Recipients of notice.--An employer who implements a 
        plant closing or mass layoff subject to section 4 shall provide 
        written notice of such closing or mass layoff--
                    (A) to each representative of the affected 
                employees as of the time of the notice or, if there is 
                no such representative at that time, to each affected 
                employee; and
                    (B) to the State dislocated worker unit (designated 
                or created under title III of the Job Training 
                Partnership Act (29 U.S.C. 1651 et seq.)) and the chief 
                elected official of the unit of local government within 
                which such closing or layoff is to occur.
            (2) Special rule for recipients.--If there is more than one 
        such unit of local government, the unit of local government 
        that the employer shall notify is the unit of local government 
        to which the employer pays the highest taxes for the year 
        preceding the year for which the determination is made.
    (b) Contents of Notice.--The notice required under subsection (a) 
shall include a statement of--
            (1) the nature of the site of employment at which the plant 
        closing or mass layoff is to be undertaken;
            (2) the reasons for undertaking such plant closing or mass 
        layoff;
            (3) any alternative to undertaking such plant closing or 
        mass layoff;
            (4) any request made by the employer to a State or unit of 
        general local government for location assistance to avoid such 
        plant closing or mass layoff with respect to such site of 
        employment;
            (5) the estimated extent of the employment loss within the 
        employer that will result from such plant closing or mass 
        layoff;
            (6) any plan to minimize the effects of such plant closing 
        or mass layoff on employees at such site of employment and on 
        any unit of local government having jurisdiction over the 
        geographical area in which the site of employment is located;
            (7) the economic circumstances of such site of employment, 
        including the level of profitability of operations at the site 
        of employment, and any plans for future investment, employment, 
        and production at the site of employment;
            (8) the economic circumstances of the employer and the 
        feasibility of transferring employees affected by such plant 
        closing or mass layoff to other sites of employment of the 
        employer; and
            (9) the names and addresses of all employees who will 
        suffer an employment loss as a result of such plant closing or 
        mass layoff.

SEC. 6. EMPLOYEE BENEFITS.

    (a) In General.--An employer shall provide the following benefits 
to each employee who suffers an employment loss due to a plant closing 
or mass layoff subject to section 4:
            (1) Severance pay.--Severance pay equal to the product of--
                    (A) the amount equal to 4 weeks wages of the 
                employee, calculated at the average wage that the 
                employee received in the final 26 weeks of employment 
                with the employer; and
                    (B) the number of years the employee was employed 
                by the employer.
            (2) Health care benefits.--Continuation of benefits under 
        the same terms and conditions of a group health plan previously 
        provided to the employee for the period ending 18 months after 
        the date of the plant closing or mass layoff.
            (3) Reimbursement for retraining and related expenses.--
        Reimbursement (not to exceed $10,000) for retraining, job 
        search, and relocation expenses incurred during the period 
        ending 2 years after the date of the notice of the plant 
        closing or mass layoff.
            (4) Training incentive payments.--Incentive payments equal 
        to 25 percent of 1 week's wages of the employee (calculated in 
        accordance with paragraph (1)(A)) for each week during which 
        the employee participates in a job training program during the 
        period ending 2 years after the date of the notice of the plant 
        closing or mass layoff.
            (5) Retirement benefits.--In any case in which, as of the 
        date of the plant closing or mass layoff, the employee is a 
        participant in an employee pension benefit plan (as defined in 
        section 3(2) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(2))) and has attained an age that is at or 
        above 5 years before early or normal retirement age (as defined 
        in section 3(24) of such Act (29 U.S.C. 1002(24)) under the 
        plan, benefits that are the actuarial equivalent of benefit 
        accruals that would occur under the plan if the employee had 
        continued in full-time service under the plan for 5 years after 
        such date at the same rate of pay and had made all required 
        contributions for such period.
    (b) Establishment of Employee Account.--
            (1) In general.--An employer who implements a plant closing 
        or mass layoff subject to section 4 shall establish an employee 
        benefit account into which the employer shall make payments 
        sufficient to fund the amount of the benefits to be provided 
        under subsection (a).
            (2) Management of account.--The account established under 
        paragraph (1) shall be managed by 5 individuals, of whom--
                    (A) 2 individuals shall be selected by the 
                employer;
                    (B) 2 individuals shall be selected by the affected 
                employees; and
                    (C) 1 individual shall be selected by the 4 
                individuals referred to in subparagraphs (A) and (B).
            (3) Regulations.--The Secretary shall promulgate 
        regulations with respect to the establishment and management of 
        accounts under this subsection.

SEC. 7. RESTRICTION ON EMPLOYER TO ENTER INTO CONTRACT WITH THE UNITED 
              STATES FOR FAILURE TO PROVIDE NOTICE OR BENEFITS.

    (a) In General.--Except as provided in subsection (b), an employer 
who implements a plant closing or mass layoff subject to section 4 and 
does not provide the notice or benefits in accordance with section 5 or 
6, respectively, may not enter into a contract with the United States 
for the provision of products or services that were involved in the 
work transfer described in section 4 or that are substantially similar 
to such products or services.
    (b) National Security Waiver.--The Secretary, in consultation with 
the head of the appropriate Federal agency to which the proposed 
contract relates, may waive the restriction described in subsection (a) 
with respect to an employer if the employer demonstrates that such 
restriction would threaten the national security of the United States.

SEC. 8. INVESTIGATIVE AUTHORITY.

    (a) In General.--To ensure compliance with this Act, or any 
regulation issued under this Act, the Secretary, subject to subsection 
(c), shall have the investigative authority provided under section 
11(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)).
    (b) Obligation To Keep and Preserve Records.--An employer shall 
keep and preserve records in accordance with section 11(c) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 211(c)) and in accordance with 
regulations issued by the Secretary.
    (c) Subpoena Power.--For the purposes of any investigation provided 
for in this section, the Secretary shall have the subpoena authority 
provided for under section 9 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 209).

SEC. 9. ENFORCEMENT.

    (a) Civil Action by Employees.--
            (1) Liability.--An employer who implements a plant closing 
        or mass layoff in violation of section 4 shall be liable to 
        each employee who suffers an employment loss due to such 
        closing or mass layoff--
                    (A) for damages equal to--
                            (i) the amount of any wages, salary, 
                        employment benefits, or other compensation 
                        denied or lost to such employee by reason of 
                        the violation;
                            (ii) the interest on the amount described 
                        in clause (i) calculated at the prevailing 
                        rate; and
                            (iii) an additional amount as liquidated 
                        damages equal to the sum of the amount 
                        described in clause (i) and the interest 
                        described in clause (ii), except that if the 
                        employer proves to the satisfaction of the 
                        court that the act or omission that violated 
                        section 4 was in good faith and that the 
                        employer had reasonable grounds for believing 
                        that the act or omission was not a violation of 
                        such section, such court may, in the discretion 
                        of the court, reduce the amount of the 
                        liability to the amount and interest determined 
                        under clauses (i) and (ii), respectively;
                    (B) for damages equal to any actual monetary loss 
                sustained by the employee as a direct result of the 
                violation, such as the cost of providing health care; 
                and
                    (C) for such equitable relief as may be 
                appropriate, including employment, reinstatement, and 
                promotion.
            (2) Standing.--An action to recover the damages or 
        equitable relief described in paragraph (1) may be maintained 
        against an employer in any Federal or State court of competent 
        jurisdiction by any one or more employees who suffer an 
        employment loss due to the closing or mass layoff for and in 
        behalf of--
                    (A) such employees; or
                    (B) such employees and other employees similarly 
                situated under the provisions of rule 23 of the Federal 
                Rules of Civil Procedure.
            (3) Fees and costs.--The court in such an action shall, in 
        addition to any judgment awarded to the plaintiff, allow a 
        reasonable attorney's fee, reasonable expert witness fees, and 
        other costs of the action to be paid by the defendant.
    (b) Action by State and Unit of Local Government.--
            (1) Liability.--An employer who implements a plant closing 
        or mass layoff in violation of section 4 shall be liable to the 
        State or unit of local government in which the employer is 
        located for damages equal to the difference of--
                    (A) the location assistance provided to the 
                employer by the State or unit of local government; and
                    (B) the amount of the benefit, if any, which the 
                State or unit of local government will continue to 
                receive as a result of the provision of such assistance 
                to the employer.
            (2) Standing.--An action to recover the damages described 
        in paragraph (1) may be maintained against any employer in any 
        Federal or State court of competent jurisdiction by the State 
        or unit of local government described in paragraph (1).
            (3) Fees and costs.--The court in such an action shall, in 
        addition to any judgment awarded to the plaintiff, allow a 
        reasonable attorney's fee, reasonable expert witness fees, and 
        other costs of the action to be paid by the defendant.
    (c) Action by the Secretary.--
            (1) Administrative action.--The Secretary shall receive, 
        investigate, and attempt to resolve complaints of violations of 
        section 4 in the same manner that the Secretary receives, 
        investigates, and attempts to resolve complaints of violations 
        of sections 6 and 7 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206 and 207).
            (2) Civil action.--The Secretary may bring an action in any 
        court of competent jurisdiction to recover the damages 
        described in subsection (a)(1)(A) on behalf of each employee 
        who suffers an employment loss due to a plant closing or mass 
        layoff in violation of section 4.
            (3) Sums recovered.--
                    (A) In general.--Any sums recovered by the 
                Secretary on behalf of an employee under paragraph (2) 
                shall be held in a special deposit account and shall be 
                paid, on order of the Secretary, directly to such 
                employee.
                    (B) Unpaid sums.--Any such sums not paid to an 
                employee because of inability to do so within a period 
                of 3 years from the date of recovery by the Secretary 
                shall be credited as an offsetting collection to the 
                appropriations account of the Secretary of Labor for 
                expenses for the administration of this Act and shall 
                remain available to the Secretary until expended.
    (d) Limitation.--
            (1) In general.--An action may be brought under subsection 
        (a), (b), or (c) not later than 3 years after the date of the 
        last event constituting the alleged violation for which the 
        action is brought.
            (2) Commencement with respect to action by secretary.--In 
        determining when an action is commenced by the Secretary under 
        subsection (c) for purposes of paragraph (1), such action shall 
        be considered to be commenced on the date when the complaint is 
        filed.
    (e) Action for Injunction by Secretary.--The district courts of the 
United States shall have jurisdiction, for cause shown, over an action 
brought by the Secretary to restrain violations of section 4, including 
actions to restrain the withholding of payment of wages, salary, 
employment benefits, or other compensation, plus interest, found by the 
court to be due to employees who suffer an employment loss due to a 
plant closing or mass layoff in violation of such section.

SEC. 10. PROCEDURES IN ADDITION TO OTHER RIGHTS OF EMPLOYEES.

    The rights and remedies provided to employees under this Act are in 
addition to, and not in lieu of, any other contractual or statutory 
rights and remedies of the employees, and are not intended to alter or 
affect such rights and remedies, except that the period of notification 
required by section 4(a) shall run concurrently with any period of 
notification required by contract or by any other law.

SEC. 11. REQUIREMENT OF POSTING OF NOTICE BY EMPLOYER AT SITE OF 
              EMPLOYMENT.

    (a) In General.--Each employer shall post and keep posted, in 
conspicuous places at the site of employment of the employer where 
notices to employees and applicants for employment are customarily 
posted, a notice, to be prepared or approved by the Secretary, setting 
forth excerpts from, or summaries of, the pertinent provisions of this 
Act and information pertaining to the filing of a charge.
    (b) Penalty.--Any employer that willfully violates the requirements 
described in subsection (a) may be assessed a civil money penalty not 
to exceed $100 for each separate offense.

SEC. 12. EFFECTIVE DATE.

    This Act shall take effect on the date that is 6 months after the 
date of the enactment of this Act.