[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3657 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3657

 To provide pay equity and labor protection for contingent workers and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 1996

Ms. Velazquez introduced the following bill; which was referred to the 
Committee on Economic and Educational Opportunities, and in addition to 
the Committees on Ways and Means, Government Reform and Oversight, and 
  House Oversight, 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 pay equity and labor protection for contingent workers 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 ``Contingent Work Force Equity Act of 
1996''.

SEC. 2. EQUAL PAY.

    Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) 
is amended by adding at the end the following:
    ``(g)(1) No employer having employees subject to any provision of 
this section shall discriminate, within any establishment in which such 
employees are employed, between employees on the basis of employment 
status by paying wages to part-time or temporary employees in such 
establishment at a rate less than the rate at which the employer pays 
wages to full-time employees in such establishment for equal work on 
jobs the performance of which requires equal skill, effort, and 
responsibility and which are performed under similar working conditions 
unless such payment is made pursuant to--
            ``(A) a seniority system;
            ``(B) a merit system;
            ``(C) a system that measures earnings by quantity or 
        quality of production; or
            ``(D) a differential based on any other factor other than 
        employment status.
An employer who is paying a wage rate differential in violation of this 
paragraph shall not, in order to comply with the requirements of this 
paragraph, reduce the wage rate of any employee.
    ``(2) No labor organization, or its agents, representing employees 
of an employer having employees subject to any provision of this 
section shall cause or attempt to cause such an employer to 
discriminate against an employee in violation of paragraph (1).
    ``(3) For purposes of administration and enforcement of paragraph 
(1), any amount owing to any employee that has been withheld in 
violation of paragraph (1) shall be deemed to be unpaid minimum wages 
under subsection (a) or unpaid overtime compensation under section 7.
    ``(4) As used in paragraph (2), the term `labor organization' means 
any organization of any kind, or any agency or employee representation 
committee or plan, in which employees participate and which exists for 
the purpose, in whole or in part, of dealing with employers concerning 
grievances, labor disputes, wages, rates of pay, hours of employment, 
or conditions of work.''.

SEC. 3. OCCUPATIONAL SAFETY AND HEALTH.

    (a) Amendment.--Section 5(a)(1) of the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 654(a)(1)) is amended to read as follows:
            ``(1) shall furnish employment and a place of employment 
        that are free from recognized hazards that are causing or are 
        likely to cause death or serious physical harm to the employees 
        of the employer or to individuals who are employed by another 
        employer and are performing services at such place of 
        employment;''.
    (b) Study.--The Secretary of Labor shall conduct a study to 
determine if the health and safety of part-time or temporary employees 
are being adequately monitored and, if the monitoring is not adequate, 
to determine how such monitoring can be made adequate.

SEC. 4. FAMILY AND MEDICAL LEAVE.

    (a) Family and Medical Leave Act.--Section 101(2)(A) of the Family 
and Medical Leave Act (29 U.S.C. 2611(2)(A)) is amended--
            (1) by striking ``at least 12 months'' and inserting ``at 
        least 3 months''; and
            (2) by striking ``at least 1,250 hours of service with such 
        employer during the previous 12-month period'' and inserting 
        ``at least 125 hours of service with such employer during the 
        previous 3-month period''.
    (b) Federal Employees.--Section 6381(1)(B) of title 5, United 
States Code, is amended by striking ``12 months'' and inserting ``3 
months''.
    (c) Congressional Employees.--Section 202(a)(2)(B) of the 
Congressional Accountability Act of 1995 is amended--
            (1) by striking ``for 12 months'' and inserting ``for 3 
        months''; and
            (2) by striking ``at least 1,250 hours of employement 
        during the previous 12 months'' and inserting ``at least 125 
        hours of employment during the previous 3-month period''.

SEC. 5. CONTINGENT WORKFORCE SURVEY.

    The Secretary of Labor, acting through the Commissioner of the 
Bureau of Labor Statistics, shall establish and carry out an annual 
survey identifying--
            (1) the characteristics of temporary workers in the United 
        States;
            (2) the relationship between such workers and the 
        establishments at which such workers are temporarily employed; 
        and
            (3) where appropriate, the relationship between such 
        workers and their permanent employers.

SEC. 6. COLLECTIVE BARGAINING RIGHTS.

    Section 9(b) of the National Labor Relations Act (29 U.S.C. 195(b)) 
is amended--
            (1) by striking ``; or (2)'' and inserting ``2'';
            (2) by striking ``or (3)'' and inserting ``; (3)''; and
            (3) by inserting before the period the following: ``; or 
        (4) decide that an employee shall be excluded from a unit 
        otherwise appropriate for the purposes of collective bargaining 
        based on the employee's part-time or temporary status, if such 
        employee (A) has a reasonable expectation of continued 
        employment; and (B) is employed by the employer on the date on 
        which eligibility for participation in a representation 
        election is determined and on the date of the election.''.

SEC. 7. PROTECTION OF PART-TIME AND TEMPORARY WORKERS.

    (a) Treatment of Employees Working at Less Than Full-Time Under 
Participation, Vesting, and Accrual Rules Governing Pension Plans.--
            (1) Participation rules.--
                    (A) In general.--Section 202(a)(3) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1052(a)(3)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the 12-month period referred to in 
subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such 12-month period shall be 
treated as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) Conforming amendment.--Section 204(b)(1)(E) of 
                such Act (29 U.S.C. 1054(b)(1)(E)) is amended by 
                striking ``section 202(a)(3)(A)'' and inserting 
                ``subparagraphs (A) and (E) of section 202(a)(3)''.
            (2) Vesting rules.--
                    (A) In general.--Section 203(b)(2) of such Act (29 
                U.S.C. 1053(b)(2)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) 1-Year breaks in service.--Section 203(b)(3) of 
                such Act (29 U.S.C. 1053(b)(3)) is amended by adding at 
                the end the following new subparagraph:
    ``(F)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 250 hours of service within such period shall be treated 
as completion of 500 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
            (3) Accrual rules.--Section 204(b)(4)(C) of such Act (29 
        U.S.C. 1054(b)(4)(C)) is amended--
                    (A) by inserting ``(i)'' after ``(C)''; and
                    (B) by adding at the end the following new clauses:
    ``(ii) For purposes of this subparagraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to clause (i)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(iii) For purposes of clause (ii), the extent to which employment 
in any type of position customarily constitutes less than 1,000 hours 
of service per year shall be determined with respect to each pension 
plan in accordance with such regulations as the Secretary shall 
prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
    (b) Treatment of Employees Working at Less Than Full-Time Under 
Group Health Plans.
            (1) In general.--Part 2 of subtitle B of title I of such 
        Act is amended--
                    (A) by redesignating section 211 (29 U.S.C. 1061) 
                as section 212; and
                    (B) by inserting after section 210 (29 U.S.C. 1060) 
                the following new section:

       ``treatment of part-time workers under group health plans

    ``Sec. 211. (a) In General.--A reduction in the employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage solely because the employee's customary employment 
is less than full-time may be provided under such plan only if the 
employee is described in subsection (b) and only to the extent 
permitted under subsection (c).
    ``(b) Reductions Applicable to Employees Working Less Than Full-
Time.--
            ``(1) In general.--An employee is described in this 
        subsection if such employee, as of the beginning of the period 
        of coverage referred to in subsection (a)--
                    ``(A) has customarily completed less than 30 hours 
                of service per week, or
                    ``(B) is employed in a type of position in which 
                employment customarily constitutes less than 30 hours 
                of service per week.
            ``(2) Regulations.--For purposes of paragraph (1), whether 
        employment in any type of position customarily constitutes less 
        than 30 hours of service per week shall be determined with 
        respect to each group health plan in accordance with such 
        regulations as the Secretary shall prescribe providing for 
        consideration of facts and circumstances peculiar to the work-
        force constituting the participants in such plan.
    ``(c) Amount of Permissible Reduction.--The employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage, after the reduction permitted under subsection (a), 
shall not be less than a ratable portion of the employer-provided 
premium which would be provided under such plan for such period of 
coverage with respect to an employee who completes 30 hours of service 
per week.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Group health plan.--The term `group health plan' has 
        the meaning provided such term in section 607(1).
            ``(2) Employer-provided premium.--
                    ``(A) In general.--The term `employer-provided 
                premium' under a plan for any period of coverage means 
                the portion of the applicable premium under the plan 
                for such period of coverage which is attributable under 
the plan to employer contributions.
                    ``(B) Applicable premium.--For purposes of 
                subparagraph (A), in determining the applicable premium 
                of a group health plan, principles similar to the 
                principles applicable under section 604 shall apply.''.
            (2) Conforming amendments.--
                    (A) Section 201(1) of such Act (29 U.S.C. 1051(1)) 
                is amended by inserting ``, except with respect to 
                section 211'' before the semicolon.
                    (B) The table of contents in section 1 of such Act 
                is amended by striking the item relating to section 211 
                and inserting the following new items:

``Sec. 211. Treatment of part-time workers under group health plans.
``Sec. 212. Effective date.''.
    (c) Expansion of Definition of Employee To Include Certain 
Individuals Whose Services Are Leased or Contracted for.--Paragraph (6) 
of section 3 of such Act (29 U.S.C. 1002(6)) is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Such term includes, with respect to any employer, any person 
who is not an employee (within the meaning of subparagraph (A)) of such 
employer and who provides services to such employer, if--
            ``(i) such person has (pursuant to an agreement with such 
        employer or any other person) performed such services for such 
        employer (or for such employer and related persons (within the 
        meaning of section 144(a)(3) of the Internal Revenue Code of 
        1986)) for a period of at least 1 year (6 months in the case of 
        core health benefits) at the rate of at least 500 hours of 
        service per year, and
            ``(ii) such services are of a type historically performed, 
        in the business field of the employer, by employees (within the 
        meaning of subparagraph (A)).''.
    (d) Effective Dates.
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        plan years beginning on or after January 1, 1997.
            (2) Special rule for collectively bargained plans.--In the 
        case of a plan maintained pursuant to 1 or more collective 
        bargaining agreements between employee representatives and 1 or 
        more employers ratified on or before the date of the enactment 
        of this Act, paragraph (1) shall be applied to benefits 
        pursuant to, and individuals covered by, any such agreement by 
        substituting for ``January 1, 1997'' the date of the 
        commencement of the first plan year beginning on or after the 
        earlier of--
                    (A) the later of--
                            (i) January 1, 1997, or
                            (ii) the date on which the last of such 
                        collective bargaining agreements terminates 
                        (determined without regard to any extension 
                        thereof after the date of the enactment of this 
                        Act), or
                    (B) January 1, 1999.
            (3) Plan amendments.--If any amendment made by this section 
        requires an amendment to any plan, such plan amendment shall 
        not be required to be made before the first plan year beginning 
        on or after January 1, 1998, if--
                    (A) during the period after such amendment made by 
                this section takes effect and before such first plan 
                year, the plan is operated in accordance with the 
                requirements of such amendment made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after such amendment made by this section 
                takes effect and such first plan year.
        A plan shall not be treated as failing to provide definitely 
        determinable benefits or contributions, or to be operated in 
        accordance with the provisions of the plan, merely because it 
        operates in accordance with this paragraph.

SEC. 8. UNEMPLOYMENT COMPENSATION.

    (a) Part-Time Employees; Independent Contractors.--Subsection (a) 
of section 3304 of the Internal Revenue Code of 1986 (relating to 
requirements for approval of State unemployment compensation laws) is 
amended by striking ``and'' at the end of paragraph (17), by 
redesignating paragraph (18) as paragraph (20), and by inserting after 
paragraph (17) the following new paragraphs:
            ``(18) in applying the State law provisions relating to 
        availability for work, active search for work, or refusal to 
        accept work, to an individual seeking part-time employment, the 
        term `suitable work' shall not include any work where the 
        individual would normally perform services for more hours per 
        week than the number of hours per week for which the individual 
        is available if the individual demonstrates good cause for the 
        individual's limited availability and such limitation does not 
        substantially impair the individual's current attachment to the 
        labor force;
            ``(19) the determination of whether an individual is an 
        employee of another person shall be made in accordance with 
        section 3306(i); and''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on January 1, 
        1997.
            (2) Special rule.--In the case of any State the legislature 
        of which has not been in session for at least 30 calendar days 
        (whether or not successive) between the date of the enactment 
        of this Act and January 1, 1997, the amendments made by this 
        section shall take effect 30 calendar days after the 1st day on 
        which such legislature is in session on or after January 1, 
        1998.
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