H.R. 4599: Protections and Transparency in the Workplace Act

This bill, known as the Protections and Transparency in the Workplace Act, aims to enhance transparency and accountability in public companies regarding sexual harassment and discrimination claims. Here are the key provisions included in the bill:

1. Disclosure Requirements

Public companies will be required to disclose detailed information regarding sexual harassment and discrimination claims in their annual and quarterly reports. This includes:

• The total number of claims received during the reporting period.
• The number of ongoing investigations at the time of the report.
• The total number of claims resolved within the reporting period.
• The number of settlements related to these claims.
• The number of court judgments connected to the claims.
• The aggregate amount paid in settlements, including payments made by the company or other related parties.
• The outcomes of adjudicated cases, including any settlements and their nature.

2. Additional Disclosure Requirements

Companies must also report:

• The number of repeat claims against a specific individual.
• The measures taken to prevent harassment and discrimination, including mandatory training programs.
• The average time taken to resolve claims.
• Disclosure must include data related to parent, subsidiary, or affiliate companies.

3. Independent Investigations

When investigating claims of discrimination or harassment, companies must hire a third-party law firm to conduct impartial investigations. The choice of the law firm must be agreed upon by all employees involved in the claim.

4. Mandatory Training Programs

The bill mandates that companies implement comprehensive training programs for employees, with specific provisions for:

• New hires must complete training within 60 days of starting their job.
• All employees must undergo training annually.
• Employees who have committed harassment must retake the training promptly.

The training must cover topics such as what constitutes harassment, reporting procedures, employee rights, and bystander intervention strategies.

5. Annual Employee Survey

Companies are required to conduct an annual employee survey to assess:

• Employees' feelings of safety in the workplace.
• Comfort levels regarding reporting harassment.
• Suggestions for improving reporting mechanisms.

6. Establishment of a Whistleblower Tip Line

Each covered issuer must create an anonymous tip line for employees to report harassment or discrimination. Reports made to this line must be immediately directed to key management and board members of the company.

7. Attestation of Compliance

Each company must include an attestation from its senior leadership, including the general counsel and board members, affirming that the company has the required policies in place and is in compliance with the new disclosure and training requirements.

Definitions

The bill also provides definitions for terms used such as "covered issuer," which refers to any issuer of a registered security, and clarifies who qualifies as an employee under the terms of the bill.

Relevant Companies

• AMZN - Amazon is likely to be affected due to its size and numerous employees, necessitating compliance with the new reporting and training requirements.
• AAPL - Apple, as a major public company, will need to adapt to the expanded disclosure and investigation protocols laid out in the bill.
• GOOGL - Alphabet Inc. will be required to implement extensive training programs and reporting mechanisms for harassment claims.
• TSLA - Tesla may need to enhance its training and reporting structures in light of the new legal requirements set forth in the bill.