117 HR 5842 IH: Ending the Monopoly of Power Over Workplace Harassment through Education and Reporting Act
U.S. House of Representatives
2021-11-03
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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.
1.This Act may be cited as the Ending the Monopoly of Power Over Workplace Harassment through Education and Reporting Act
or the EMPOWER Act
. <enum>I</enum><header>Preventing and Responding to Workplace Harassment</header> <section id="H5A64345D02D548419A720A080D0479EB"><enum>101.</enum><header>Purpose and authority</header><text display-inline="no-display-inline">It is the purpose of this title, through the exercise by Congress of its power to regulate commerce among the several States, to deter, prevent, reduce, and respond to harassment in the workplace, including sexual harassment, sexual assault, and harassment based on other protected categories.</text></section>
<section id="H4BAAA84495E3411FAEBEDA4ED419DA68"><enum>102.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text> <paragraph id="H08FB88155C3144518FFC21637933F266"><enum>(1)</enum><header>Applicant</header><text>The term <term>applicant</term> means an applicant for employment as an employee, independent contractor, or outside worker.</text></paragraph>
<paragraph id="H87C933A79DCC46478B499F5CB8C9C4FF"><enum>(2)</enum><header>Charge of Discrimination</header><text display-inline="yes-display-inline">The term <term>Charge of Discrimination</term> means a charge or complaint of discrimination filed pursuant to section 706 of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e-5">42 U.S.C. 2000e–5</external-xref>), section 7 of the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/626">29 U.S.C. 626</external-xref>), section 107 of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12117">42 U.S.C. 12117</external-xref>), or section 207 of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff-6">42 U.S.C. 2000ff–6</external-xref>).</text></paragraph> <paragraph id="HC1817C2AC72340709E36C155B39F7D09"><enum>(3)</enum><header>Commission</header><text>The term <term>Commission</term> means the Equal Employment Opportunity Commission.</text></paragraph>
<paragraph id="HC5B3CC124C8C4B37BF64E92966758C69"><enum>(4)</enum><header>Employee</header><text>The term <term>employee</term> means—</text> <subparagraph id="H2F1A08572AFA4BDAA9D97C389354294E"><enum>(A)</enum><text>an individual employed by an employer described in paragraph (5), including an outside worker in such individual's office or place of employment;</text></subparagraph>
<subparagraph id="HDA36AA2D5CDC4C918D89DE2D4C5C5EAC"><enum>(B)</enum><text display-inline="yes-display-inline">an employee to which section 703, 704, or 717(a) of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e-2">42 U.S.C. 2000e–2</external-xref>, 2000e–3, 2000e–16(a)) applies, including an outside worker in such an employee's office or place of employment, section 4 of the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/623">29 U.S.C. 623</external-xref>), section 102 of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12112">42 U.S.C. 12112</external-xref>), or sections 202, 203, and 204 of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff-1">42 U.S.C. 2000ff–1</external-xref>, 2000ff–2, 2000ff–3);</text></subparagraph> <subparagraph id="HCDA7ED17C90D4D0287FA8BFEAE929000"><enum>(C)</enum><text>a State employee to which section 302(a) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)) applies, including an outside worker in such a State employee's office or place of employment; or</text></subparagraph>
<subparagraph id="H5F62A963F8AC4EB4BA464FC8162F6442"><enum>(D)</enum><text>a covered employee, as defined in section 101 of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>) or section 411(c) of title 3, United States Code, including an outside worker in such a covered employee's office or place of employment.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HC69F21A5013447159C1CC5FFE5C940B9"><enum>(5)</enum><header>Employer</header><text>The term <term>employer</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H25040F6D897D4904A985282189D6D8B6"><enum>(A)</enum><text>a person engaged in an industry affecting commerce, and any agent of such a person;</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H3BA54275869A46EF8D103F335101E7E3"><enum>(B)</enum><text display-inline="yes-display-inline">an entity to which section 703, 704, or 717(a) of the Civil Rights Act of 1964 applies, sections 4 and 15 of the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/623">29 U.S.C. 623</external-xref>, 633a), section 102 of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12112">42 U.S.C. 12112</external-xref>), or sections 202, 203, and 204 of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff-1">42 U.S.C. 2000ff–1</external-xref>, 2000ff–2, 2000ff–3);</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB3383B88532540A2859CD794F63E74DE"><enum>(C)</enum><text>an employing authority to which section 302(a)(1) of the Government Employee Rights Act of 1991 applies; or</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HA6F5F5A4A21544E08DBE7C0E7421F3E2"><enum>(D)</enum><text>an employing office, as defined in section 101 of the Congressional Accountability Act of 1995 or section 411(c) of title 3, United States Code.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H8547AF2DB4F64A4890B6747F8BF57594"><enum>(6)</enum><header>Fair employment practices agencies</header><text display-inline="yes-display-inline">The term <term>fair employment practices agencies </term> means State and local agencies with the authority to enforce laws or regulations to prohibit discrimination in employment, to grant or seek relief from discrimination, or to institute criminal proceedings.</text></paragraph> <paragraph commented="no" id="HC507E6D6901D49E6942D3AA89C608A1A"><enum>(7)</enum><header>Independent contractor</header><text display-inline="yes-display-inline">The term <term>independent contractor</term> means an individual who, with respect to an employer, is a contractor based on the common law of agency.</text></paragraph>
<paragraph id="H6BFDAD82157E49CB92320B234B6841C9"><enum>(8)</enum><header>Law enforcement agency</header><text>The term <term>law enforcement agency</term> means a government agency with criminal or civil law enforcement powers, which may include a government agency with regulatory or licensing authority.</text></paragraph> <paragraph id="HEA0A1A7DED2D407A9C297758ED70C750"><enum>(9)</enum><header>Nondisclosure clause</header><text>The term <term>nondisclosure clause</term> means a provision in a contract or agreement establishing that the parties to the contract or agreement agree not to disclose information covered by the terms and conditions of the contract or agreement.</text></paragraph>
<paragraph id="HEA5840740D914C638084CA17CCB82290"><enum>(10)</enum><header>Nondisparagement clause</header><text>The term <term>nondisparagement clause</term> means a provision in a contract or agreement requiring one or more parties to the contract or agreement not to make negative statements about the other.</text></paragraph> <paragraph id="H3222C549324A4695AB480B12F813A2F5"><enum>(11)</enum><header>Outside worker</header><text>The term <term>outside worker</term> means—</text>
<subparagraph id="H28E13F95FA514A3BB46283429F37468D"><enum>(A)</enum><text display-inline="yes-display-inline">a temporary worker hired through an employment agency (as defined in section 701 of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e</external-xref>)) to provide services to an employer pursuant to an agreement between the employment agency and the employer, section 11 of the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/630">29 U.S.C. 630</external-xref>), section 101 of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12111">42 U.S.C. 12111</external-xref>), or section 201 of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff">42 U.S.C. 2000ff</external-xref>)”;</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HF5C144DCAFB14F8F9FA5925601AA4ED4"><enum>(B)</enum><text>an independent contractor for an employer or a subcontractor thereof; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5969F19994E849E0B4206C7DB96A1197"><enum>(C)</enum><text>an intern or volunteer, whether paid or unpaid, for an employer.</text></subparagraph></paragraph> <paragraph id="HF069A85F6FAB4EA09D44AD10F99CF26D"><enum>(12)</enum><header>Sexual assault</header><text display-inline="yes-display-inline">The term <term>sexual assault</term> means any nonconsensual sexual act proscribed by Federal, tribal, or State law, including such an act that occurs when the victim lacks capacity to consent.</text></paragraph>
<paragraph id="H6D64EA495D9442F2BE7B2BCF3781497D"><enum>(13)</enum><header>Subcontractor</header><text>The term <term>subcontractor</term> means any employer having a contract with a prime contractor or another subcontractor calling for supplies or services required for the performance of a contract or a government contract.</text></paragraph> <paragraph commented="no" id="H4A4236B2F7EC41D6A0F781F01DE0FD22"><enum>(14)</enum><header>Workplace harassment</header><text display-inline="yes-display-inline">The term <term>workplace harassment</term> means unwelcome or offensive conduct based on sex (including such conduct based on sexual orientation, gender identity, and pregnancy), race, color, national origin, disability, age, religion, or genetic information including conduct that occurs in-person or through an electronic medium (which may include social media), in a work or work-related context, which affects any term, condition, or privilege of employment.</text></paragraph></section>
<section id="HF10151D556E240C5B3F7F302CEAB4D3C"><enum>103.</enum><header>Prohibiting nondisparagement and nondisclosure clauses that cover workplace harassment, including sexual harassment</header>
<subsection id="HB33749A910D241799D83658D00A54B33"><enum>(a)</enum><header>Unlawful practices</header>
<paragraph id="HA86D211BD5DA4BF5B24C0A1796F10362"><enum>(1)</enum><header>Prohibition on workplace harassment nondisclosure clause</header><text display-inline="yes-display-inline">Subject to subsection (b)(1), it shall be an unlawful practice for an employer to enter into a contract or agreement with an employee or applicant, as a condition of employment, promotion, compensation, benefits, or change in employment status or contractual relationship, or as a term, condition, or privilege of employment, if that contract or agreement contains a nondisparagement or nondisclosure clause that covers workplace harassment, including sexual harassment or retaliation for reporting, resisting, opposing, or otherwise participating in a workplace harassment proceeding.</text></paragraph> <paragraph id="HAB9D27E7B8AD45138B99CF33843298F4"><enum>(2)</enum><header>Prohibition on enforcement</header><text>Notwithstanding any other provision of law, it shall be an unlawful practice and otherwise unlawful for an employer to enforce or attempt to enforce a nondisparagement clause or nondisclosure clause described in paragraph (1).</text></paragraph></subsection>
<subsection id="H06332B012ED045BC942C82EFFA6D3EB2"><enum>(b)</enum><header>Settlement or separation agreements</header>
<paragraph id="H7F786E09BD9D47738E1EAB84C7685C3D"><enum>(1)</enum><header>In General</header><text>The provisions of subsection (a) do not apply to a nondisclosure clause or nondisparagement clause contained in a settlement agreement or separation agreement that resolves legal claims or disputes when—</text> <subparagraph id="H98A713635692444885ED7974A988524B"><enum>(A)</enum><text>such legal claims accrued or such disputes arose before the settlement agreement or separation agreement was executed; and</text></subparagraph>
<subparagraph id="HA2326BC4C6624684AB1B1E1851953F6F"><enum>(B)</enum><text>such clauses are mutually agreed upon and mutually benefit both the employer and employee or applicant.</text></subparagraph></paragraph> <paragraph id="H06CE6BBBD68E4FA9B49E7E75E631D47A"><enum>(2)</enum><header>Unlawful practice</header><text>It shall be an unlawful practice for an employer to unilaterally include a nondisclosure clause or a nondisparagement clause that solely benefits the employer in a separation or settlement agreement.</text></paragraph></subsection>
<subsection id="HA99C362534E14AB78757A3F5CCA4C92D"><enum>(c)</enum><header>Right To report reserved</header><text>Notwithstanding signing (before or after the effective date of this title) any nondisparagement or nondisclosure clause including a clause referred to in subsection (a)(1), an employee or applicant retains any right that person would otherwise have had to report a concern about workplace harassment, including sexual harassment or another violation of the law to the Commission, another Federal agency (including an office of the legislative or judicial branch), a State or local fair employment practices agency or any State or local agency, or a law enforcement agency, and any right that person would otherwise have had to bring an action in a court of the United States.</text></subsection> <subsection id="H002BD1ECDA604D7F80384F61028A9A09"><enum>(d)</enum><header>Enforcement</header> <paragraph id="H918206327E674294A21BC5B5E1A8DD1E"><enum>(1)</enum><header>Enforcement powers</header><text>With respect to the administration and enforcement of this section in the case of a claim alleged by an employee or applicant for a violation of this section—</text>
<subparagraph id="H64DEB3F50C4E44819E92AD3DA89BD289"><enum>(A)</enum><text>the Commission shall have the same powers as the Commission has to administer and enforce—</text> <clause id="H5E86649D8EDC47ACA6E954065ED35D27"><enum>(i)</enum><text>title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>);</text></clause>
<clause id="H4E1F4138CCE642C9BA6E1C72CA657D6E"><enum>(ii)</enum><text display-inline="yes-display-inline">the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/621">29 U.S.C. 621 et seq.</external-xref>);</text></clause> <clause id="H4AE5BD4497C94802902D7F245B6BBA22"><enum>(iii)</enum><text>titles I and V of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et seq.</external-xref>);</text></clause>
<clause id="H046A7F8B21CC44A195DA5F900292E428"><enum>(iv)</enum><text>title II of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff">42 U.S.C. 2000ff et seq.</external-xref>); or</text></clause> <clause id="H127855AEC9274E569D480986EB7362E9"><enum>(v)</enum><text>sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c),</text></clause><continuation-text continuation-text-level="subparagraph">in the case of a claim alleged by an employee or applicant for a violation of the law specified in respective clause of this subparagraph; </continuation-text></subparagraph>
<subparagraph id="HDEF8F3C88D2344259D3A33B5456A7E4C"><enum>(B)</enum><text>the Librarian of Congress shall have the same powers as the Librarian of Congress has to administer and enforce title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of such title;</text></subparagraph> <subparagraph id="HC632E7D5ED3945B08CE01E0FC6949D55"><enum>(C)</enum><text>the Board (as defined in section 101 of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>)) shall have the same powers as the Board has to administer and enforce the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301 et seq.</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of section 201(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>);</text></subparagraph>
<subparagraph id="HB03AD0755A3442DB808099497168E07D"><enum>(D)</enum><text>the Attorney General shall have the same powers as the Attorney General has to administer and enforce—</text> <clause id="HA43740D3D5C143B6B950889F9DC519C6"><enum>(i)</enum><text>title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>); or</text></clause>
<clause id="H1634E7A8B431479A954DB8C4E28C54D4"><enum>(ii)</enum><text display-inline="yes-display-inline">sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c),</text></clause><continuation-text continuation-text-level="subparagraph">in the case of a claim alleged by an employee or applicant for a violation of the law specified in respective clause of this subparagraph; </continuation-text></subparagraph> <subparagraph id="H19556B036E1F4C6796CD490BCE46ABC4"><enum>(E)</enum><text>the President, the Commission, and the Merit Systems Protection Board shall have the same powers as the President, the Commission, and the Board, respectively, have to administer and enforce <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/3/5">chapter 5</external-xref> of title 3, United States Code, in the case of a claim alleged by an employee or applicant for a violation of section 411 of such title;</text></subparagraph>
<subparagraph id="H600E564F833B4AF0AD03F54BC7A3CB6B"><enum>(F)</enum><text>the Commission shall have the same powers as described in subparagraph (A) to administer and enforce a claim by any employee or applicant who is not otherwise able to seek remedy for a claim through an enforcement entity described in subparagraph (A) through (E); and</text></subparagraph> <subparagraph id="H76D1194499AA4BB0AC5086A12BFA1953"><enum>(G)</enum><text>a court of the United States shall have the same jurisdiction and powers as the court has to enforce—</text>
<clause id="HADCE11780F4D4A4D9AD5A00F52820289"><enum>(i)</enum><text>title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of such title or in the case of a claim described in subparagraph (F);</text></clause> <clause id="H125BDDBF6AA744AB95BAF2930D9A2BCC" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/621">29 U.S.C. 621 et seq.</external-xref>);</text></clause>
<clause id="H3DD97782FAB04B02BAB969F2B7C35175"><enum>(iii)</enum><text>titles I and V of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et seq.</external-xref>);</text></clause> <clause id="HB499E40E60C34C6DA48DB18237D43173"><enum>(iv)</enum><text>title II of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff">42 U.S.C. 2000ff et seq.</external-xref>);</text></clause>
<clause id="HEAF39C61A22C4AE5AF0FEB2614CFFFE2"><enum>(v)</enum><text display-inline="yes-display-inline">sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c) in the case of a claim alleged by an employee or applicant for a violation of section 302(a)(1) of such Act (42 U.S.C. 2000e–16b(a)(1));</text></clause> <clause id="HC011CD12BF8D4AACA03B4B9354EDD918"><enum>(vi)</enum><text>the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301 et seq.</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of section 201(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>); and</text></clause>
<clause id="HD60CEFDD5B96424B97284BF23FD6984C"><enum>(vii)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/3/5">chapter 5</external-xref> of title 3, United States Code, in the case of a claim alleged by an employee or applicant for a violation of section 411 of such title.</text></clause></subparagraph></paragraph> <paragraph id="H70F00237E766479B9FCF3318E724156E"><enum>(2)</enum><header>Procedures and remedies</header><text>The procedures and remedies applicable to a claim alleged by an employee or applicant for a violation of this section are—</text>
<subparagraph id="HAC94B0192E574DCC8307C9355D2256E2"><enum>(A)</enum><text>the procedures and remedies applicable for a violation of title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of such title or in the case of a claim described in paragraph (1)(F);</text></subparagraph> <subparagraph id="HC2EDF0961EEA493B9EFFCDCE8A0BDD88" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/621">29 U.S.C. 621 et seq.</external-xref>);</text></subparagraph>
<subparagraph id="HB6C76DF2005A42BD951996390036ADA8"><enum>(C)</enum><text>titles I and V of the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et seq.</external-xref>);</text></subparagraph> <subparagraph id="HC21DF16C921F45A087B7AB8EB4EACA7A"><enum>(D)</enum><text>title II of the Genetic Information Nondiscrimination Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000ff">42 U.S.C. 2000ff et seq.</external-xref>);</text></subparagraph>
<subparagraph id="H6E2A4EE6010E49D3BEC9FAFE808CB6AC"><enum>(E)</enum><text>the procedures and remedies applicable for a violation of section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in the case of a claim alleged by an employee or applicant for a violation of such section;</text></subparagraph> <subparagraph id="HD8979EE15E6749E089D3CD226FC46053"><enum>(F)</enum><text>the procedures and remedies applicable for a violation of section 201(a)(1) of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>) in the case of a claim alleged by an employee or applicant for a violation of such section; and</text></subparagraph>
<subparagraph id="H1375020F77F34A82B18313C0A09FEE1F"><enum>(G)</enum><text>the procedures and remedies applicable for a violation of section 411 of title 3, United States Code, in the case of a claim alleged by an employee or applicant for a violation of such section.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HB78DDAD2282C492A82D5C323CAEE2907"><enum>(3)</enum><header>Other applicable provisions</header><text>With respect to a claim alleged by a covered employee (as defined in section 101 of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>)) for a violation of this section, title III of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1381">2 U.S.C. 1381 et seq.</external-xref>) shall apply in the same manner as such title applies with respect to a claim alleged by such a covered employee for a violation of section 201(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>).</text></paragraph></subsection>
<subsection id="H3784BB436E7D4C65B4395EF3702A98E6"><enum>(e)</enum><header>Regulations</header>
<paragraph id="H42C931CDE01647E7975C724C7A46E455"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2), (3), and (4), the Commission shall have authority to issue regulations to carry out this section.</text></paragraph> <paragraph id="H217D104A05F948AB9DD75CDA8249F17F"><enum>(2)</enum><header>Librarian of Congress</header><text>The Librarian of Congress shall have authority to issue regulations to carry out this section with respect to employees or applicants for employment of the Library of Congress.</text></paragraph>
<paragraph id="H135AFD93871D4718B82C1F7E64026535"><enum>(3)</enum><header>Board</header><text>The Board referred to in subsection (d)(1)(C) shall have authority to issue regulations to carry out this section, in accordance with section 304 of the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1384">2 U.S.C. 1384</external-xref>), with respect to covered employees, as defined in section 101 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H890B43C448894371B2DD0F0A488DDD9B"><enum>(4)</enum><header>President</header><text>The President shall have authority to issue regulations to carry out this section with respect to covered employees, as defined in section 411(c) of title 3, United States Code, and applicants for employment as such employees.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H85202121F8734D528673FCD0C8E2D98A"><enum>(f)</enum><header display-inline="yes-display-inline">State and Federal immunity</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6ED82337CFC24A90879C4ECBDFF6755C"><enum>(1)</enum><header display-inline="yes-display-inline">Abrogation of State immunity</header><text display-inline="yes-display-inline">A State shall not be immune under the 11th Amendment to the Constitution from a suit brought in a Federal court of competent jurisdiction for a violation of this section.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HC901A18430A14DFCB6AA6903987958CD"><enum>(2)</enum><header display-inline="yes-display-inline">Waiver of State immunity</header> <subparagraph commented="no" display-inline="no-display-inline" id="HA56D83F66B1D477BBC0DFF045750B32F"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header> <clause commented="no" display-inline="no-display-inline" id="H35D2AC4B7C4844FA85F3D1BBBA92207C"><enum>(i)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">A State’s receipt or use of Federal financial assistance for any program or activity of a State shall constitute a waiver of sovereign immunity, under the 11th Amendment to the Constitution or otherwise, to a suit brought by an employee or applicant for employment of that program or activity under this section for a remedy authorized under subsection (d).</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H6903473B32FA4DC5B3434605F6A26C15"><enum>(ii)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this paragraph, the term <term>program or activity</term> has the meaning given the term in section 606 of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000d-4a">42 U.S.C. 2000d–4a</external-xref>).</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HBC2015EB41844D629013C42E6AB79539"><enum>(B)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">With respect to a particular program or activity, subparagraph (A) applies to conduct occurring on or after the day, after the date of enactment of this Act, on which a State first receives or uses Federal financial assistance for that program or activity.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H74AA8D277D294C35ADD73E994F2BB5F9"><enum>(3)</enum><header display-inline="yes-display-inline">Remedies against State officials</header><text display-inline="yes-display-inline">An official of a State may be sued in the official capacity of the official by any employee or applicant for employment who has complied with the applicable procedures of subsection (d), for equitable relief that is authorized under this section. In such a suit the court may award to the prevailing party those costs authorized by section 722 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/42/1988">42 U.S.C. 1988</external-xref>).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HC9478C197689481781D1FAE2736F4CD3"><enum>(4)</enum><header display-inline="yes-display-inline">Remedies against the United States and the States</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this title, in an action or administrative proceeding against the United States or a State for a violation of this section, remedies (including remedies at law and in equity, and interest) are available for the violation to the same extent as the remedies are available for a violation of title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>) by a private entity, except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE7971739644C431A8E033536F6DB62DB"><enum>(A)</enum><text display-inline="yes-display-inline">punitive damages are not available; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H112B9BF332D24847871F3559E51078BD"><enum>(B)</enum><text display-inline="yes-display-inline">compensatory damages are available to the extent specified in section 1977A(b) of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/42/1981a">42 U.S.C. 1981a(b)</external-xref>).</text></subparagraph></paragraph></subsection></section>
<section id="H3A54704B4690403CBA641C7D8D7FB7F4"><enum>104.</enum><header>SEC filings and material disclosures at public companies</header>
<subsection id="H03E34D97029E4AA5BF604162A6F6C5F2"><enum>(a)</enum><header>Definitions</header><text>In this section—</text> <paragraph id="H2844A00B8D9A42C687C127E2F751E975"><enum>(1)</enum><text>the term <term>Form 10–K</term> means the form described in section 249.310 of title 17, Code of Federal Regulations, or any successor regulation; and</text></paragraph>
<paragraph id="H051B745F18AA4D618D73D2152CD357BD"><enum>(2)</enum><text>the term <term>issuer</term> has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>).</text></paragraph></subsection> <subsection id="H8C4EBD250B6644A6B6442A1D27A00CA8"><enum>(b)</enum><header>Findings</header><text>Congress finds that—</text>
<paragraph id="H851472D19CCE4B3C96CE337750D453BB"><enum>(1)</enum><text>shareholders and the public should know whether corporations—</text> <subparagraph id="H6F5701FB8154479DA92198B4CB5C4A28"><enum>(A)</enum><text>are expending company funds to resolve, settle, or litigate claims of workplace harassment, including sexual harassment; and</text></subparagraph>
<subparagraph id="H3858961569074F1696297A49CFC6144C"><enum>(B)</enum><text>along with the executives and managers of those corporations—</text> <clause id="HE535B84CFE924D77861154E82D0C7BEF"><enum>(i)</enum><text>are complying with prohibitions against workplace harassment, including sexual harassment; and</text></clause>
<clause id="H374C99DDCB944B9F802F5004C80EF36E"><enum>(ii)</enum><text>facilitate a culture of silence, disrespect, intimidation, and abuse that negatively impacts the health and safety of the workers of those corporations and the value of those corporations; and</text></clause></subparagraph></paragraph> <paragraph id="HEE3A7B6BCCFC482CA511C3818AFDA5E6"><enum>(2)</enum><text>the requirements of this section will—</text>
<subparagraph id="H500EE5CC7100454F83256FE8A340F5EF"><enum>(A)</enum><text>establish necessary transparency and accountability; and</text></subparagraph> <subparagraph id="H313C0C28B1F74CD8B7E331BE16744456"><enum>(B)</enum><text>provide an incentive for corporations to—</text>
<clause id="H67AAB8E634BA46558B5D6BE1D1592CD2"><enum>(i)</enum><text>promptly address workplace harassment, including sexual harassment, as that misconduct occurs; and</text></clause> <clause id="HFA1583A60B0340BE86E499624AD7B5D8"><enum>(ii)</enum><text>foster a culture in which workplace harassment is not protected and does not occur.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H33952632245442F183AE7DF31C6A6515"><enum>(c)</enum><header>Information required</header><text>Not later than 1 year after the date of enactment of this Act, the Securities and Exchange Commission shall promulgate a regulation that requires any issuer that is required to submit annually a report using Form 10–K to include in any such submission—</text> <paragraph id="HD30BD4E0387E43A18CF64BF59CAE02C8"><enum>(1)</enum><text>during the then most recent 5-year period covered by the submission—</text>
<subparagraph id="H1E5E4D4FC80B4195B7499D01AB698CE9"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to workplace harassment, including sexual harassment, and retaliation for reporting, resisting, opposing, assisting, or otherwise participating in a workplace harassment proceeding—</text> <clause id="HE7CDCD20D8BD4DCCB3C661CD0E37281E"><enum>(i)</enum><text>the number of settlements reached by the issuer as a signatory or when the issuer is a beneficiary of a release of claims; and</text></clause>
<clause id="HAA709FEABF684EBC9067FA64E769B55E"><enum>(ii)</enum><text>whether any judgments or awards (including awards through arbitration or administrative proceedings) were entered against the issuer in part or in whole, or any payments made in connection with a release of claims; and</text></clause></subparagraph> <subparagraph id="HDBD1961B755C4E2D81DC0AC0ADDE940E"><enum>(B)</enum><text>the total amount paid by the issuer or another party as a result of—</text>
<clause id="HC45CB0DE7B6C4274AEC16A31F2E05B37"><enum>(i)</enum><text>the settlements described in subparagraph (A)(i); and</text></clause> <clause id="HD29A7CC29C054872B1C3D39E6970D794"><enum>(ii)</enum><text>the judgments described in subparagraph (A)(ii); and</text></clause></subparagraph></paragraph>
<paragraph id="HF4275738939B4BCDADC376BFBD85E3FE"><enum>(2)</enum><text display-inline="yes-display-inline">information regarding whether, in the aggregate, including the period covered by the submission, there have been three or more settlements reached by, or judgments against, the issuer with respect to workplace harassment, including sexual harassment, or retaliation for reporting, resisting, opposing, assisting, or otherwise participating in a workplace harassment proceeding that relate to a particular individual employed by the issuer, without identifying that individual by name.</text></paragraph></subsection></section> <section id="H0786688E4CAB41AC81A812FB8A2FF41B"><enum>105.</enum><header>Professional training, including bystander training, and public education campaigns</header> <subsection id="H90872D129CDD4F8795739989DF86D87B"><enum>(a)</enum><header>Commission authority</header><text>The Commission shall have the authority to—</text>
<paragraph id="H07A171986F224ED4991C791670CC6E19"><enum>(1)</enum><text>reasonably adjust the fees the Commission charges for any education, technical assistance, or training the Commission offers in accordance with section 705(j)(1) of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e-4">42 U.S.C. 2000e–4(j)(1)</external-xref>);</text></paragraph> <paragraph id="HC981B941097246819754E065F3090FE8"><enum>(2)</enum><text>use the materials developed by the Commission for any education, technical assistance, or training offered by the Commission in accordance with section 705(j)(1) of the Civil Rights Act of 1964 in any education and outreach activities carried out by the Commission; and</text></paragraph>
<paragraph id="H52FF1494312B424A92831D8BB681A42B"><enum>(3)</enum><text>use funds from the EEOC Education, Technical Assistance, and Training Revolving Fund, established under section 705(k) of the Civil Rights Act of 1964, to pay the full salaries of any Commission employees that develop and administer any education, technical assistance, or training programs offered by the Commission.</text></paragraph></subsection> <subsection id="HB798966A36B9495BB3532A69C66A5BF8"><enum>(b)</enum><header>Workplace training</header> <paragraph id="HD9D734D370F947D09EEAD2980E58552A"><enum>(1)</enum><header>In general</header><text>The Commission shall provide for the development and dissemination of workplace training programs and information regarding workplace harassment, including sexual harassment.</text></paragraph>
<paragraph id="HAFE8FAB496DC4B0B9469CB7D869A058B"><enum>(2)</enum><header>Contents of training</header><text>The training provided by the Commission under this subsection to managers and nonmanagers shall be consistent with the findings of the Commission, on matters including—</text> <subparagraph id="HA4E17F14E2974A7E99CC4455A5F0EF9B"><enum>(A)</enum><text>what constitutes workplace harassment, including sexual harassment;</text></subparagraph>
<subparagraph id="H9236CEE7631D42008C81694F6D75B6CA"><enum>(B)</enum><text>the rights of individuals with respect to workplace harassment and how to report workplace harassment;</text></subparagraph> <subparagraph id="H30DE678303CE44D88674D4B3383DDF27"><enum>(C)</enum><text>how individuals, including bystanders, who encounter workplace harassment can intervene or report the harassment; and</text></subparagraph>
<subparagraph id="HD8D71F70CAD845E9841F1E7ECE451D1C"><enum>(D)</enum><text>how employers and managers can prevent workplace harassment, including sexual harassment, from occurring in the workplace.</text></subparagraph></paragraph> <paragraph id="H3ACA7394F00D41F29F1EB8F504ACB76E"><enum>(3)</enum><header>Contents of information</header><text>In providing information under this subsection, the Commission shall—</text>
<subparagraph id="HE68486F2172B4B75B26D28B5F5326C55"><enum>(A)</enum><text>prepare and distribute information that is consistent with the findings of the Commission; and</text></subparagraph> <subparagraph id="H7C4BEE3EF206470883DF1708318D0446"><enum>(B)</enum><text>develop and disseminate a public service advertisement campaign that distributes information with respect to the matters described in paragraph (2).</text></subparagraph></paragraph></subsection>
<subsection commented="no" id="H3D7A82637AD742AAA3A6D89E71DF431C"><enum>(c)</enum><header>Effective date</header><text>This section shall not take effect in any fiscal year for which less than $1,500,000 is appropriated to carry out this section.</text></subsection></section> <enum>II</enum><header>Modification of Tax Treatment of Amounts Related to Employment Discrimination and Workplace Harassment</header> <section id="H3CD3E788347945EFA55650D2E2C8D4BA" section-type="subsequent-section"><enum>201.</enum><header>Tax treatment of amounts related to judgments</header> <subsection id="H545C594FC65F405784710702797A2A19"><enum>(a)</enum><header>Denial of deduction</header> <paragraph id="HA16CE1E0098943DDA8E6921F16F838D2"><enum>(1)</enum><header>In general</header><text>Part IX of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H60FCC4EDC07E49ECB78A2C6D88D6BBA1" style="OLC">
<section id="H4408B353466D4FFC92028B06EFBC9F98"><enum>280I.</enum><header>Amounts related to judgments with respect to workplace harassment, including sexual harassment</header><text display-inline="no-display-inline">No deduction shall be allowed under this chapter for amounts paid or incurred by the taxpayer—</text> <paragraph id="H214479763FD54924A5634AC4C8E272AC"><enum>(1)</enum><text>pursuant to any judgment or award in litigation related to workplace harassment, including sexual harassment, or</text></paragraph>
<paragraph id="HD6AAC67D44EC4F78937F02F84EA37F4F"><enum>(2)</enum><text display-inline="yes-display-inline">for expenses and attorney's fees in connection with the litigation resulting in the judgment or award described in paragraph (1) (other than expenses or attorney's fees paid by the workplace harassment plaintiff or claimant), or for any insurance covering the defense or liability of the underlying claims with respect to such litigation.</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H8C060001A7F5455A957F35B20C166159"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:</text>
<quoted-block id="H8BA0CF2DFF0F40BBB1D54EBD03C6B59A" style="OLC">
<toc>
<toc-entry idref="H4408B353466D4FFC92028B06EFBC9F98" level="section">Sec. 280I. Amounts related to judgments with respect to workplace harassment, including sexual harassment.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE67A065576AB4690AB04A6EC3993ACB6"><enum>(3)</enum><header>Conforming amendment</header><text>Section 162 of such Code is amended by striking subsection (q).</text></paragraph> <paragraph id="H9E0751B6AB084805AEF5CC4F57B84FA7"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection>
<subsection id="H11A706333D07447CB936E67B0CAC84DA"><enum>(b)</enum><header>Exclusion from income</header>
<paragraph id="H5827672D3F4E428E88AD68CD103DDCC0"><enum>(1)</enum><header>In general</header><text>Part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 139G the following new section:</text> <quoted-block display-inline="no-display-inline" id="HC4A253310DBC40C2BDFE36CC421A0BC5" style="OLC"> <section id="H5E6FD12A9DF84ACE8F0CFF162266F216"><enum>139H.</enum><header>Amounts received in connection with judgments, awards, and settlements with respect to workplace harassment</header><text display-inline="no-display-inline">Gross income shall not include any amount received in connection with a judgment or award in, or a settlement of—</text>
<paragraph id="HAFF4D3308ABF4187B65C637C829AF76A"><enum>(1)</enum><text display-inline="yes-display-inline">a claim related to workplace harassment, including sexual harassment or other unlawful discrimination, or</text></paragraph> <paragraph id="HA934D8673B85421B9F33563030C46234"><enum>(2)</enum><text display-inline="yes-display-inline">any other claim of unlawful discrimination (as defined by section 62(e)).</text></paragraph><continuation-text continuation-text-level="section">The preceding sentence shall not include any employment discrimination compensation to which section 1302 applies.</continuation-text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HC1B947B36C854935BC232B6B1AA1DA57"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139G the following new item:</text> <quoted-block id="H2C0FC2F882D6499FA4EBF63644F36E8C" style="OLC"> <toc> <toc-entry idref="H5E6FD12A9DF84ACE8F0CFF162266F216" level="section">Sec. 139H. Amounts received in connection with judgments, awards, and settlements with respect to workplace harassment.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HE5DD33BDAEB9473CA3607B2B4B307838"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to amounts received in taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection></section>
<section id="HE0407FC5A5794CE7897D61E338F3DA53"><enum>202.</enum><header>Limitation on tax based on income averaging for compensation received on account of certain unlawful employment discrimination</header>
<subsection id="H2CBD2E2CCC5E40288A154782ACC18296"><enum>(a)</enum><header>In general</header><text>Part I of subchapter Q of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to income averaging) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="HCCCA6A4A0B074026AAFAC3A10A9DCB00" style="OLC"> <section id="HAB445DA7C39D47EB840AD7E3A5C6B063" display-inline="no-display-inline"><enum>1302.</enum><header>Income from backpay and frontpay received on account of certain unlawful employment discrimination</header> <subsection id="HF221DB41080946C4B1EADA9F92936AB9"><enum>(a)</enum><header>General rule</header><text>If employment discrimination backpay or frontpay is received by a taxpayer during a taxable year, the tax imposed by this chapter for such taxable year shall not exceed the sum of—</text>
<paragraph id="HB4072E6716E84CC486DF4799EF9D4074"><enum>(1)</enum><text>the tax which would be so imposed if—</text> <subparagraph id="H68A46A7971E94E73A84970C665092587"><enum>(A)</enum><text>no amount of such backpay or frontpay were included in gross income for such year, and</text></subparagraph>
<subparagraph id="HC6065EEF6B3644C38F59598C1403E379"><enum>(B)</enum><text>no deduction were allowed for such year for expenses (otherwise allowable as a deduction to the taxpayer for such year) in connection with making or prosecuting any claim of unlawful employment discrimination by or on behalf of the taxpayer, plus</text></subparagraph></paragraph> <paragraph id="HE84716AC78CD41B5B1BBEF644ABBA28A"><enum>(2)</enum><text>the product of—</text>
<subparagraph id="HDF2329DE67584ECEAB0BEADA3671B44B"><enum>(A)</enum><text>the number of years in the backpay period and frontpay period, and</text></subparagraph> <subparagraph id="H8FF79DD72FCF4107B659740F69BCEDC1"><enum>(B)</enum><text>the amount by which the tax determined under paragraph (1) would increase if the amount on which such tax is determined were increased by the average annual net backpay and frontpay amount.</text></subparagraph></paragraph></subsection>
<subsection id="HDB341AEC80FD4E7DA2937F402583A9DE"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="H60DFEB22CDB648F388FD9D92635DA07A"><enum>(1)</enum><header>Employment discrimination backpay or frontpay</header><text>The term <term>employment discrimination backpay or frontpay</term> means backpay or frontpay receivable (whether as lump sums or periodic payments) on account of a claim of unlawful employment discrimination.</text></paragraph>
<paragraph id="H3C32650FD3F34C3F8398D90CE6547FCD"><enum>(2)</enum><header>Unlawful employment discrimination</header><text>The term <term>unlawful employment discrimination</term> has the meaning provided the term <term>unlawful discrimination</term> in section 62(e).</text></paragraph> <paragraph id="H580B360A246E48928A833E9B3D5848BB"><enum>(3)</enum><header>Backpay and frontpay</header><text>The terms <term>backpay</term> and <term>frontpay</term> mean amounts—</text>
<subparagraph id="H471570ACB08649F2ACB9C695DA37330D"><enum>(A)</enum><text>which are includible in gross income in the taxable year as compensation which is attributable—</text> <clause id="H2F77B5E77E5A413984521815EA317154"><enum>(i)</enum><text>in the case of backpay, to services performed, or that would have been performed but for a claimed violation of law, as an employee, former employee, or prospective employee before such taxable year for the taxpayer’s employer, former employer, or prospective employer, and</text></clause>
<clause id="H3DF594DB117D48B38412A0A5D5EF8C9D"><enum>(ii)</enum><text>in the case of frontpay, to employment that would have been performed but for a claimed violation of law, in a taxable year or taxable years following the taxable year, and</text></clause></subparagraph> <subparagraph id="H74E9E5B0AF10498EBDD818C0D51F9AC3"><enum>(B)</enum><text>which are received on account of a judgment or settlement resulting from a claim for a violation of law.</text></subparagraph></paragraph>
<paragraph id="HEB52F9270E074AACA3C2C5D600662531"><enum>(4)</enum><header>Backpay period</header><text>The term <term>backpay period</term> means the period during which services are performed (or would have been performed) to which backpay is attributable. If such period is not equal to a whole number of taxable years, such period shall be increased to the next highest number of whole taxable years.</text></paragraph> <paragraph id="H3EB0ABDD43014C09997288E8CC7E0314"><enum>(5)</enum><header>Frontpay period</header><text>The term <term>frontpay period</term> means the period of foregone employment to which frontpay is attributable. If such period is not equal to a whole number of taxable years, such period shall be increased to the next highest number of whole taxable years.</text></paragraph>
<paragraph id="HD34C881B9DB940FB96A6F7B8B44B9A82"><enum>(6)</enum><header>Average annual net backpay and frontpay amount</header><text>The term <term>average annual net backpay and frontpay amount</term> means the amount equal to—</text> <subparagraph id="H74D2902A2B2D4254A896F5640579B6C0"><enum>(A)</enum><text>the excess of—</text>
<clause id="H996AA619F042458F81D2B253C2F862D5"><enum>(i)</enum><text>employment discrimination backpay and frontpay, over</text></clause> <clause id="H8937931F2C2E4A0B8572B8F08EEFF16E"><enum>(ii)</enum><text>the amount of deductions that would have been allowable but for subsection (a)(1)(B), divided by</text></clause></subparagraph>
<subparagraph id="H20E9998681494B6290E0CDD948CD502F"><enum>(B)</enum><text>the number of years in the backpay period and frontpay period.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H94C998B1B047482BB0CEC0A297561530"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part I of subchapter Q of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 1301 the following new item:</text>
<quoted-block id="H5FEF159C9D904F76AED7E277041F1CB7" style="OLC">
<toc>
<toc-entry level="section">Sec. 1302. Income from compensation received on account of certain unlawful employment discrimination.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA467713799194D9FA38D36B4AC94884B"><enum>(c)</enum><header>Income averaging not To increase alternative minimum tax liability</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(c)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H4F5DA89875DD4B16BD4C67DF6D97AA42" style="OLC"> <paragraph id="H5764D84F85CC46C694611D86B5784316"><enum>(3)</enum><header>Coordination with income averaging for amounts received on account of employment discrimination</header><text>Solely for purposes of this section, section 1302 shall not apply in computing the regular tax liability.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE6FC5547FC1C4BD38C8F75BF91C15D65"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></subsection></section>