109 HR 5998 IH: To provide for livable wages for Federal Government U.S. House of Representatives 2006-07-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5998 IN THE HOUSE OF REPRESENTATIVES July 28, 2006 Mr. Gutierrez (for himself, Mr. Hastings of Florida, Mr. Nadler, Mr. Cummings, Ms. Corrine Brown of Florida, Mr. Strickland, Mr. Sanders, Mr. Owens, Mr. Thompson of Mississippi, Mr. Capuano, Mr. McGovern, Mr. McNulty, Ms. Waters, Ms. Schakowsky, Mr. Evans, Mr. Fattah, Mr. Hinchey, Ms. Baldwin, Mr. Lantos, Mr. Jackson of Illinois, and Mr. Tierney) 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.

1.

Short title

This Act may be cited as the Federal Living Wage Responsibility Act.

2.

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, not less than 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).

3.

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 2 has engaged in a pattern or practice of violations of section 2, 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 canceled 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 canceled 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 2 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 of such determination in an appropriate court.

4.

Emergencies

The President may suspend the provisions of this Act in times of emergency.

5.

Private right of action

(a)

Action

A worker aggrieved by a violation of section 2 may, in a civil action, recover appropriate relief. A civil action under this section shall be filed not later than 2 years after the commission of such violation. A civil action may not be brought under this section if an employer subject to section 2 has paid or reinstated the worker as a result of an administrative action under section 3. (b)

Relief

In this section, the term appropriate relief means— (1)injunction of a violation of section 2; (2)actual damages or, if the court finds that the employer willfully violated section 2, 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.

6.

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.

7.

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.