,,ii #aagth ,,congress #ast ,session ,s4 #ahae ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #be1 #bjba,mr4 ,warner introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,securities ,exchange ,act of #aicd to require issuers to disclose to the ,securities and ,exchange ,commission information regarding workforce management policies1 practices1 and performance1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,workforce ,investment ,disclosure ,act of #bjba4 #b4 ,findings ,congress finds the following3 7#a7 ,one of the keys to the #bjth century post-war economic success of the ,united ,states was the ability to prepare workers over the course of their lives for success through multiple sectors across society4 ,unfortunately1 during the several decades preceding the date of enactment of this ,act1 there has been a shift in business norms and in society4 ,while ,congress recognizes that the technology and job skills required for some jobs has changed dramatically1 the private and public partnership to hire workers at different education levels and invest in them for the long-term is broken4 7#b7 ,available data from the #aj-year period preceding the date of enactment of this ,act suggests that businesses are investing less in worker training during that time period1 not more4 7#c7 ,in the wake of the #bjjh global financial crisis1 there was a well-documented decline in overall business investment4 ,that decline coincides with the wage polarization of workers and an increase in spending on share buybacks and dividends1 leading several researchers to conclude that companies are de-emphasizing investment at the expense of increasing returns for shareholders4 ,the onset of a global pandemic may make that trend worse1 especially with respect to investments in workers4 7#d7 ,as part of the overall decline in investment described in paragraph 7#c71 publicly traded companies are being provided with incentives to prioritize investments in physical assets over investments in their workforces1 meaning that those companies are investing in robots instead of individuals4 ,in fact1 there are already signs that automation has increased during the ,,covid-#ai pandemic4 7#e7 ,more than ever1 the ,federal ,government1 through company disclosure practices1 needs to understand exactly how companies are investing in their workers4 ,over the several months preceding the date of enactment of this ,act1 companies across the ,united ,states have taken extreme actions to adapt and respond to evolving workforce challenges presented by ,,covid-#ai4 7#f7 ,,just ,capital has been tracking the responses of the ,standard and ,poor's #ajj largest public companies to their workers and has found wide variation in the policies implemented1 as well as with respect to the disclosure of those policies4 ,through different responses to their workforces1 from layoffs to workplace safety to paid leave1 the ,,covid-#ai pandemic is exposing the myriad ways that workforce management practices of companies pose operational and reputational risks for short- and long-term financial performance4 7#g7 ,even before the ,,covid-#ai pandemic1 there was a growing body of research establishing a relationship between measurable workforce management1 which is the way that companies manage their employees1 and firm performance4 ,in a study of #b1jjj large companies1 ,harvard ,law ,school's ,labor and ,work ,life ,program found that forward-thinking workforce policies that prioritize workers1 such as how companies train1 retain1 and pay their workers1 are correlated with long-term financial performance4 7#h7 ,disclosure of workforce management policies should be part of a ,government-wide economic recovery strategy4 ,just as a set of generally accepted accounting principles 7commonly known as ,,gaap7 was urgently adopted after the ,great ,depression1 standardized1 comparable metrics of workforce disclosure requirements in the context of the ,,covid-#ai pandemic are critical for investors to accurately measure and project company performance1 both in the present and in the future4 7#i7 ,because many companies already track workforce metrics internally1 moving towards a transparent disclosure regime would allow investors to better judge whether companies are managing risks and making the investments in their workforces that are needed for long-term growth4 7#aj7 ,businesses increasingly rely on workforce innovation and intellectual capital for competitiveness4 ,workplace benefits1 particularly paid sick leave1 medical leave1 and flexible work arrangements1 critically support employee mental and physical well-being4 7#aa7 ,race- and gender-based workplace discrimination have been tied to negative health outcomes1 as well as lower productivity1 trust1 morale1 and satisfaction and higher rates of absenteeism and turnover4 ,organizational reporting on practices to reduce discrimination can increase employee job satisfaction1 performance1 and engagement4 7#ab7 ,according to the ,centers for ,disease ,control and ,prevention1 work-related stress is the leading occupational health risk and1 per the ,american ,institute of ,stress1 job stress costs ,united ,states industry more than #cjj1jjj1jjj1jjj per year in accidents1 absenteeism1 employee turnover1 diminished productivity1 and medical1 legal1 and insurance costs4 7#ac7 ,employee health and well-being is a key asset to delivering long-term value1 with #hj percent of public companies that took concrete actions on health and well-being having seen larger improvements in financial performance4 7#ad7 ,organizational well-being interventions can create cost savings of up to #aj dollars for every dollar invested4 ,specifically1 for every dollar that employers spend on workplace disease prevention and well-being programs1 there is a #c4bg reduction in employee medical costs and a #b4gc reduction in absenteeism costs4 ,employers that implement workplace health promotion programs have seen reductions in sick leave1 health plan costs1 and workers' compensation and disability insurance costs of approximately #be percent4 7#ae7 ,the ,centers for ,disease ,control and ,prevention has found that preventable chronic conditions are a major contributor to insurance premium and employee medical claim costs1 which are at an all-time high1 and a ,milken ,institute study shows that employers paid #b1fjj1jjj1jjj1jjj in #bjaf for the indirect costs of employee chronic disease due to work absences1 lost wages1 and reduced economic productivity4 7#af7 ,the ,,covid-#ai pandemic has severely impacted employee physical1 mental1 and emotional well-being by increasing stress1 depression1 burnout1 and mortality rates of chronic disease and by reducing work-life balance and financial security1 with these challenges likely to persist due to uncertainty and instability even as employees return to work4 ,before the ,,covid-#ai pandemic1 but especially in the face of that pandemic1 employers that advance policies and practices that support workforce health1 safety1 and well-being are likely to outperform competitors and benefit from lower costs4 #c4 ,disclosures relating to workforce management ,section #ac of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7 is amended by adding at the end the following3 7s7 ,disclosures relating to workforce management 7#a7 ,definition ,in this subsection1 the term contingent worker includes an individual performing work on a temporary basis or as an independent contractor4 7#b7 ,regulations ,not later than #b years after the date of enactment of this subsection1 the ,commission1 in consultation with the ,secretary of ,labor1 the ,secretary of ,commerce1 the ,secretary of ,treasury1 and the ,attorney ,general1 shall promulgate regulations that require each issuer required to file an annual report under subsection 7a7 or section #ae7;d7 to disclose in that report information regarding workforce management policies1 practices1 and performance with respect to the issuer4 7#c7 ,rules ,consistent with the requirement under paragraph 7#d71 each annual report filed with the ,commission in accordance with the regulations promulgated under paragraph 7#b7 shall include disclosure of the following with respect to the issuer filing the report for the year covered by the report3 7,a7 ,workforce demographic information1 including-- 7i7 the number of full-time employees1 the number of part-time employees1 and the number of contingent workers 7including temporary and contract workers7 with respect to the issuer1 which shall include demographic information with respect to those categories of individuals1 including information regarding race1 ethnicity1 and gender2 7ii7 any policies or practices of the issuer relating to subcontracting1 outsourcing1 and insourcing individuals to perform work for the issuer1 which shall include demographic information with respect to those individuals1 including information regarding race1 ethnicity1 and gender2 and 7iii7 whether the percentage of contingent workers with respect to the issuer has changed1 including temporary and contract workers1 as compared with the previous annual report filed by the issuer under this subsection4 7,b7 ,workforce stability information1 including information about the voluntary turnover or retention rate1 the involuntary turnover rate1 the internal hiring rate1 and the internal promotion rate1 and the horizontal job change rate by quintile and demographic information4 7,c7 ,workforce composition1 including-- 7i7 data on diversity 7including racial1 ethnic1 and gender composition7 for senior executives and other individuals in the workforce2 and 7ii7 any policies1 audits1 and programming expenditures relating to diversity4 7,d7 ,workforce skills and capabilities1 including-- 7i7 information about training and cross-training of employees and contingent workers by quintile and demographic information1 distinguishing between compliance training1 career development training1 job performance or technical training1 and training tied to recognized postsecondary credentials2 7ii7 average number of hours of training for each employee and contingent worker2 7iii7 total spending on training for all employees and contingent workers2 7iv7 average spending per employee or contingent worker2 7v7 training utilization rates2 and 7vi7 whether completion of training opportunities translates into value added benefit for workers1 as determined by wage increases or internal promotions4 7,e7 ,workforce health1 safety1 and well-being1 including information regarding-- 7i7 the frequency1 severity1 and lost time due to injuries1 physical and mental illness1 and fatalities2 7ii7 the scope1 frequency1 and total expenditure on workplace health1 safety1 and well-being programs2 7iii7 the total dollar value of assessed fines under the ,occupational ,safety and ,health ,act of #aigj 7#bi ,u4,s4,c4 #fea et seq472 7iv7 the total number of actions brought under section #ac of the ,occupational ,safety and ,health ,act of #aigj 7#bi ,u4,s4,c4 #ffb7 to prevent imminent dangers2 7v7 the total number of actions brought against the issuer under section #aa7;c7 of the ,occupational ,safety and ,health ,act of #aigj 7#bi ,u4,s4,c4 #ffj7;c772 7vi7 any findings of workplace harassment or workplace discrimination during the #e fiscal year period of the issuer preceding the fiscal year in which the report is filed2 and 7vii7 communication channels and grievance mechanisms in place for employees and contingent workers4 7,f7 ,workforce compensation and incentives1 including information regarding-- 7i7 total workforce costs1 including salaries and wages1 health benefits1 other ancillary benefit costs1 and pension costs2 7ii7 workforce benefits1 including paid leave1 health care1 child care1 and retirement1 including information regarding benefits that are provided-- 7,i7 to full-time employees and not to part-time employees2 or 7,,ii7 to employees and not to contingent workers2 7iii7 total contributions made to unemployment insurance by the issuer1 how many employees to whom those contributions apply1 and the total amount paid in unemployment compensation to individuals who were laid off by the issuer2 7iv7 policies and practices regarding how performance1 productivity1 equity1 and sustainability are considered when setting pay and making promotion decisions2 and 7v7 policies and practices relating to any incentives and bonuses provided to employees and any policies or practices designed to counter any risks created by such incentives and bonuses4 7,g7 ,workforce recruiting and needs1 including-- 7i7 the number of new jobs created1 seeking to be filled1 and filled1 disaggregated based on classification status2 7ii7 the share of new jobs that require a bachelor's degree or higher2 7iii7 information regarding the quality of hire for jobs described in clause 7i72 and 7iv7 the retention rate for individuals hired to fill the jobs described in clause 7i74 7,h7 ,workforce engagement and productivity1 including information regarding policies and practices of the issuer relating to-- 7i7 engagement1 productivity1 and mental well-being of employees and contingent workers1 as determined in consultation with the ,department of ,labor2 and 7ii7 freedom of association and work-life balance initiatives1 including flexibility and the ability of the workforce to work remotely1 as determined in consultation with the ,department of ,labor4 7#d7 ,disaggregation of information ,to the maximum extent feasible1 the information described in paragraph 7#c7 shall be disaggregated by-- 7,a7 the workforce composition described in subparagraph 7,c7 of that paragraph2 7,b7 wage quintiles of the employees of the issuer for the year covered by the applicable annual report2 and 7,c7 the employment status of individuals performing services for the issuer1 including whether those individuals are full-time employees1 part-time employees1 or contingent workers4 7#e7 ,treatment of emerging growth companies ,the ,commission may exempt emerging growth companies from any disclosure required under subparagraph 7,d71 7,e71 7,f71 7,g71 or 7,h7 of paragraph 7#c7 if the ,commission determines that such an exemption is necessary or appropriate in the public interest4 7#f7 ,false or misleading statements 7,a7 ,in general ,except as provided in subparagraph 7,b71 it shall be unlawful for any person1 in any report or document filed under this subsection1 to make or cause to be made any untrue statement of a material fact or omit to state a material fact required to be stated in the report or document or necessary to make the statement made1 in the light of the circumstances under which it is made1 not misleading4 7,b7 ,exception ,a person shall not be liable under subparagraph 7,a7 if the person shows that the person had1 after reasonable investigation1 reasonable ground to believe1 and did believe1 at the time the applicable statement was made1 that the statement was true and that there was no omission to state a material fact necessary to make the statement made1 in the light of the circumstances under which it is made1 not misleading4 7,c7 ,no private right of action ,nothing in this paragraph may be construed as creating a private right of action4 7#g7 ,exemption ,this subsection shall not apply to an investment company registered under section #h of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#h74 4 #d4 ,backstop 7a7 ,definitions ,in this section-- 7#a7 the term ,commission means the ,securities and ,exchange ,commission2 7#b7 the term covered issuer means an issuer that is required to file an annual report under section #ac7;a7 or section #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a71 #gho7d772 and 7#c7 the term issuer has the meaning given the term in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7b7 ,compliance ,if1 as of the date that is #b years after the date of enactment of this ,act1 the ,commission has not promulgated the regulations required under subsection 7s7 of section #ac of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm71 as added by section #c of this ,act1 a covered issuer1 during the period beginning on that date and ending on the date on which the ,commission promulgates those regulations1 shall be deemed to be in compliance with such subsection 7s7 if disclosures set forth in the annual report of the covered issuer satisfy the public disclosure standards of the ,international ,organization for ,standardization's ,,iso #cjdad1 or any successor standards for external workforce reporting1 as supplemented or adjusted by rules1 guidance1 or other comments from the ,commission4 #e4 ,,sec study 7a7 ,definitions ,in this section1 the terms ,commission and issuer have the meanings given those terms in section #d7;a74 7b7 ,study ,the ,commission shall conduct a study about the value to investors of-- 7#a7 information about the human rights commitments of issuers required to file annual reports under section #ac7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a771 including information about any principles used to evaluate risk1 constituency consultation processes1 and supplier due diligence2 and 7#b7 with respect to issuers required to file annual reports under section #ac7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a771 information about-- 7,a7 violations of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 by those issuers2 7,b7 violations of worker misclassification by those issuers2 7,c7 surveys regarding employee satisfaction1 well-being1 and engagement2 7,d7 the number and overall percentage of quality jobs1 as determined by compensation above median wage and comprehensive employer-provided benefits2 and 7,e7 information about workforce investment trends1 as determined by at least a #c-year time period4 7c7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,commission shall submit to ,congress a report that contains the results of the study required to be conducted under subsection 7b71 with recommendations for additional disclosure regulations based on the findings1 and any actions the ,commission plans to take to enhance disclosures based on the findings4