H.R. 8612
Reward Work Act
Sponsor: Jesús G. "Chuy" García
Official summary
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Text of the bill
(a) Definitions. In this section—
(1) the term director has the meaning given the term in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c); and
(2) the term employee—
(A) has the meaning given the term in section 2 of the National Labor Relations Act (29 U.S.C. 152); and
(B) includes any individual employed by an employer subject to the Railway Labor Act (45 U.S.C. 151 et seq.).
(b) Registration requirements for securities. Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) is amended by adding at the end the following:
(m) No issuer may register securities on a national exchange unless at least 1/3 of the issuer’s directors are chosen by the issuing company’s employees in a one-employee-one-vote election process.
(c) Policy. The Securities and Exchange Commission, in consultation with the National Labor Relations Board, shall promulgate regulations—
(1) to ensure that director elections at issuing firms are fair and democratic; and
(2) to ensure that 1/3 of an issuer’s board of directors will be composed of employee representatives within 2 years of the date of enactment of this Act.