Sec. 204. Temporary staffing companies

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1938 Section 3(d) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(d) ), as amended by section 203(a)(1), is further amended by adding at the end the following: An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1)) provided by another employer to perform labor for the employer. . Section 2(2) of the National Labor Relations Act ( 29 U.S.C. 152(2) ), as amended by section 203(b)(1), is further amended by adding at the end the following:

An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor for the employer. . 1970 Section 3(5) of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 652(5) ), as amended by section 203(c), is further amended by adding at the end the following: An employer shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor for the employer. . 1977 Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 203(d)(1), is further amended by adding at the end the following:

An operator of a coal or other mine shall also be responsible for the rights and protections of this Act with regard to one or more covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor as miners for the operator. . Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 203(e), is further amended by adding at the end the following: A farm labor contractor, agricultural employer, or agricultural association shall also be responsible for the rights and protections of this Act with regard to one or more migrant agricultural workers or seasonal agricultural workers who— are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act of 1938); and are provided by another employer to perform labor for the farm labor contractor, agricultural employer, or agricultural association. .

Section 3144b of title 40, United States Code, as amended by section 203(f)(1), is further amended by adding at the end the following: A contractor or any subcontractor shall also be responsible for the rights and protections of this subchapter with regard to one or more laborers or mechanics who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor for the contractor or subcontractor under a contract to which this subchapter applies. .

Section 6701a of title 41, United States Code, as amended by section 203(g), is further amended by adding at the end the following: A contractor shall also be responsible for the rights and protections of this chapter with regard to one or more service employees who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor for the contractor under a contract to which this chapter applies. .

Section 6501b of title 41, United States Code, as amended by section 203(h), is further amended by adding at the end the following: A contractor shall also be responsible for the rights and protections of this chapter with regard to one or more individuals who are covered employees (as defined in section 6(c)(1) of the Fair Labor Standards Act ( 29 U.S.C. 206(c)(1) )) provided by another employer to perform labor in the manufacture or furnishing of materials, supplies, articles, or equipment for the contractor under a contract to which this chapter applies. . 1993 Section 101(4) of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2611(4) ), as amended by section 203(i), is further amended by adding at the end the following:

(8)of section 3(d) of such Act. . The amendment made by subparagraph

(A)shall apply to services rendered on or after January 1, 2022. Section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ) is amended by inserting after subsection

(b)the following: In this subsection, the term covered employee means an employee provided by another employer to perform labor for the employer, including a temporary or short-term contract employee. No employer shall pay wages to a covered employee provided by another employer to perform labor for the employer, or allow a covered employee provided by another employer to perform labor for the employer at wages, at a rate less than the prevailing rate at which the employer for whom the labor is performed pays wages to direct employees for similar work on jobs the performance of which requires similar skill, effort, and responsibility, and which are performed under similar working conditions, except as provided in subparagraph (B). An employer may pay a covered employee a wage at a rate less than the wage rate required under subparagraph

(A)if— such payment is made pursuant to— a seniority system; a merit system; a system that measures rate of pay by quantity or quality of production; or a differential based on any lawful factor other than employment status; and the rate is not less than 80 percent of the prevailing rate at which the employer for whom the labor is performed pays wages to direct employees for similar work on jobs the performance of which requires similar skill, effort, and responsibility, and which are performed under similar working conditions. In the case of a covered employee who is not provided with the same benefits as the employer for whom the labor is being performed provides to its direct employees, the employer for whom the labor is being performed shall pay the covered employee, or require the employer providing the covered employee to pay the covered employee, a wage rate that, subject to subparagraph (B), is not less than the sum of— the wage rate required under paragraph (2); and the lesser of— an amount equal to 25 percent of the wage rate required under paragraph (2); or the amount the employee would have to pay to secure equivalent benefits without an employer’s assistance. In no case shall the minimum wage rate required under subparagraph

(A)be less than 125 percent of the minimum wage rate required under subsection (a)(1). . Section 13 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 213 ) is amended— in the matter preceding paragraph

(1)of subsection (a), by inserting and section 6(c) after this subsection ; in subsection (d), by inserting (except for subsection

(c)of such section) after sections 6 ; and in subsection (f), by inserting (except for subsection

(c)of such section) after sections 6 . Section 9 of the Fair Labor Standards Act of 1938, as added by section 102(a)(6)(C)(i), is further amended by adding at the end the following: In this subsection, the term covered employee has the meaning given the term in section 6(c)(1). Each employer that provides covered employees to perform labor for another employer shall register with the Secretary each year, in accordance with this subsection and regulations of the Secretary. Each such providing employer shall include with the registration— proof of an employer account number for the purposes of the payment of unemployment insurance contributions; proof of valid workers' compensation insurance in effect at the time of registration and covering all covered employees performing labor for the employer; and a report containing the information described in paragraph (7)(A)(ix), in the aggregate for all covered employees of the providing employer that performed labor for another employer in the preceding calendar year and disaggregated by branch office. The Secretary shall assess each employer that registers under subparagraph

(A)a nonrefundable registration fee equal to the sum of— $1,000 per year; and an additional $250 for each branch office of the employer. In any case where the workers' compensation insurance of an employer required to register under subparagraph

(A)lapses— the employer shall report the lapse to the Secretary; and the Secretary shall suspend the employer’s registration until the employer’s workers’ compensation insurance is reinstated. The Secretary shall have the authority to deny, suspend, or revoke the registration of an employer under subparagraph

(A)if warranted by violations of this subsection or of any other Federal, State, or local worker protection law. An employer whose registration under subparagraph

(A)is denied, suspended, or revoked shall notify, both by telephone and in writing, each of its covered employees and each of the employers for whom its covered employees perform labor within 24 hours of any denial, suspension, or revocation of its registration. An employer requesting to register with the Secretary under subparagraph

(A)is ineligible if, within the 5 years immediately preceding the date of the employer's registration request, the employer or any of its officers, directors, partners, or managers, or any owner of 25 percent or greater beneficial interest, has been involved, as officer, director, partner, manager, or owner, in another employer whose registration under such subparagraph was revoked or suspended without being reinstated. The Secretary shall create and maintain a public website that includes— a list of all employers whose registration under subparagraph

(A)is in good standing; a list of all employers whose registration under subparagraph

(A)has been suspended, including the reason for the suspension, the date the suspension was initiated, and, if known, the date the suspension is to be lifted; and a list of all employers whose registration under subparagraph

(A)has been revoked, including the reason for the revocation and the date the registration was revoked. No employer for whom a covered employee is provided by another employer to perform labor may enter into a contract or any other agreement for such labor with any employer not registered under paragraph (2)(A). An employer for whom a covered employee is provided by another employer to perform labor shall verify the providing employer’s status with the Secretary of Labor before entering into a contract or other agreement with the providing employer, and at annual intervals thereafter. An employer that provides a covered employee to another employer to perform labor shall provide any employer for whom its covered employee performs labor with proof of valid registration under paragraph (2)(A) before entering into any contract or other agreement with the receiving employer. Upon request, the Secretary shall provide to any requesting party a list of employers registered under paragraph (2)(A) and an employer may rely in good faith on the information on such list provided by the Secretary. No employer that provides a covered employee to perform labor for another employer shall— restrict the right of a covered employee to accept direct employment with an employer for whom the covered employee has performed labor; restrict the right of an employer for whom the covered employee has performed labor to offer such direct employment; or charge any fee, either to the covered employee or an employer for whom the covered employee has performed labor, for the covered employee converting to direct employment with such employer. After a covered employee performs labor for an employer for 1,040 total hours during any 12-month period, such employer shall convert the covered employee to a direct employee of such employer. An employer shall not terminate or end the agreement under which a covered employee is providing labor to the employer and then reengage such covered employee at a later date in order to evade the requirements of this subsection. An employer shall not terminate or end the agreement under which a covered employee is providing labor to the employer and then engage a different covered employee in order to evade the requirements of this subsection. Whenever an employer agrees to provide 1 or more covered employees to perform labor for another employer, the providing employer shall provide to each covered employee and to the other employer, at the time of dispatch, a statement containing the following information on a form approved by the Secretary: The name of the covered employee. The name, address, and phone number of the providing employer that has agreed to the dispatch. The name, address, and phone number of the employer for whom the covered employee will perform labor. The name, address, and phone number of the providing employer’s workers’ compensation insurance carrier. The address and phone number of the nearest regional office of the Department of Labor. The name of the position, the nature of the work to be performed, and the types of equipment, clothing, and training that are required for the task. The wages offered, including the hourly rate of pay and the hourly rate of overtime pay, should overtime hours be performed. The designated pay day. The anticipated daily start times and daily end times. The anticipated duration of the dispatch. The terms of transportation. Whether meals or equipment, or both, are provided and the cost of the meal and equipment to the covered employee, if any. If a covered employee who is provided by an employer to perform labor for another employer is assigned to the same employer for more than 1 day, the providing employer is required to provide the employment information described in subparagraph

(A)only on— the first day of the assignment; and if any of the terms described in subparagraph

(A)are changed, the first day of such change. If an employer that provides covered employees to other employers to perform labor does not place a covered employee with an employer for whom to perform labor for a particular day, the providing employer shall, upon request, provide the covered employee with a written and signed confirmation that the covered employee sought work, which shall include the name of the providing employer, the name and address of the covered employee, and the date and time that the covered employee received the confirmation. No employer may provide a covered employee to perform labor at any workplace where a strike, lockout, or other labor dispute exists. Whenever an employer provides covered employees to perform labor for another employer, the providing employer shall keep the following records with respect to the covered employees: The name, address, and telephone number for each employer to whom covered employees were sent to perform labor, including each worksite to which covered employees were sent, and the date of the transaction effectuating the agreement between employers. For each covered employee, the name, address, and specific location of the worksite, the type of labor performed, the number of hours worked, and the hourly rate of pay. The name and title of all individuals responsible for the transaction on behalf of the employer for whom the covered employee is performing labor. Any specific qualifications or attributes of an employee that are requested by the employer for whom the covered employee performs labor. Copies of all contracts (if any) or other agreements with, and all invoices from, the employer for whom the covered employee performs labor. Copies of all employment notices provided in accordance with paragraph (6)(A). Deductions to be made from the covered employee’s compensation, made by either the providing employer or the employer for whom the covered employee performs labor, for the covered employee’s transportation, food, equipment, withheld income tax, withheld social security payments, and any other deduction. Documentation verifying the actual cost of any equipment or meal charged to a covered employee. The race and gender of each covered employee performing labor. Any additional information as shall be required by regulation of the Secretary. The employer for whom the covered employee is performing labor shall transmit all information required under subparagraph (A)(ii) to the employer who has provided such covered employee not later than 7 days following the last day of the work week worked for which the covered employee performed work for the employer. The failure of an employer for whom a covered employee is performing labor to transmit the information required under this subparagraph shall not exempt the covered employee’s providing employer from any other recordkeeping requirements of this subsection. If a covered employee is provided with a meal, the covered employee shall not be charged more than the actual cost of the meal. A covered employee shall not be charged for any meal not consumed by the covered employee. Purchase of a meal by a covered employee shall not be a condition of employment or performance of labor. A covered employee may not be charged any fee for transport to or from a designated worksite by either the employer who is providing the covered employee for the performance of labor or the employer for whom the covered employee is performing labor. The employer who is providing a covered employee to perform labor for another employer is responsible for the conduct and performance of any person whom the employer secures to transport the covered employee to or from a designated worksite and for the safety of the vehicle used for such transport, unless the transporter is a part of public mass transportation or a common carrier. The employer who is providing a covered employee to perform labor for another employer may not refer the covered employee to any person for transportation to or from a worksite unless that person is— part of public mass transportation; or providing the transportation for no fee. Any motor vehicle owned or operated by an employer who is providing a covered employee to another employer that is used for the covered employee’s transportation to or from a worksite must have a seat and safety belt for each passenger and must be operated by a driver with a valid license to operate such motor vehicle. If a covered employee is provided with transportation to a worksite by either the covered employee’s providing employer or the employer for whom the covered employee is performing labor, then the covered employee shall be provided with transportation back to the point of origin unless the covered employee agrees prior to leaving for the worksite that the covered employee already has secured or will secure alternative transportation at the end of the covered employee’s shift. In any case where an employer providing a covered employee to perform labor for another employer dispatches a covered employee to a job that does not exist, the providing employer shall— refund the covered employee’s reasonable transportation costs; and pay the covered employee compensation equivalent to 2 hours of work. For any safety equipment, specialized clothing, accessories, or any other items required by the nature of the work, either by law, custom, or the employer for whom a covered employee is performing labor, the covered employee— shall not be charged for the items provided by the providing employer or the employer for whom the covered employee is performing labor, unless the covered employee negligently damages or destroys such items; and if the covered employee is required to purchase any such items, the employer for whom the covered employee is performing labor shall refund the cost of such items, including any related shipping or handling, to the covered employee. No covered employee shall be charged by the employer who is providing the covered employee to perform labor, or the employer for whom the covered employee is performing work, for any of the following: Registering with the covered employee’s providing employer. Obtaining work assignments. Drug tests. Background checks. Debit cards used for payment of wages or any other method of wage payment. . Section 15(a) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 215(a) ), as amended by section 102(a)(3)(B), is further amended by adding at the end the following: to violate any of the provisions of section 9(b). . Section 16(e) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216(e) ), as amended by section 102(a)(7)(B), is further amended by adding at the end the following: The Secretary may, after notice and an opportunity for a hearing, assess a civil penalty not to exceed $6,000 against any employer that violates any of the provisions of section 9(b) (except for paragraph (2)(A) or

(3)of such section). Each violation of such section 9(b) for each day of the violation and for each covered employee shall constitute a separate and distinct violation of such section 9(b). The Secretary may, after notice and an opportunity for a hearing, assess a civil penalty against any employer that fails to register with the Secretary of Labor in accordance with section 9(b)(2)(A), including any rules issued under such section, of $500 per violation. Each day during which an employer operates without registering shall be a separate and distinct violation of such section. Any employer for whom a covered employee performs labor that violates section 9(b)(3) shall be subject to a civil penalty of $500. Each day during which such employer contracts with a covered employee’s employer who is not registered with the Secretary of Labor under section 9(b)(2)(A) shall constitute a separate and distinct offense. The Secretary may revoke the registration of an employer under section 9(b)(2)(A) in any case where an employer willfully, as determined by the Department, commits a violation of this section within 3 years of an earlier violation of such section. .

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Sec. 204

Temporary staffing companies

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