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Proposal:EMPOWER Act—Part 2

This proposal is archived and closed to further debate. It was introduced in the 116th Congress, which has concluded, and the bill was not enacted into law.
Geographic Scope
National

Description

Ending the Monopoly of Power Over Workplace harassment through Education and Reporting Act--Part 2 or the EMPOWER Act--Part 2

This bill modifies the tax treatment of expenses and payments related to workplace harassment and employment discrimination.

The bill prohibits a tax deduction for amounts paid or incurred by the taxpayer

  • pursuant to any judgment or award in litigation related to workplace harassment, including sexual harassment;
  • for expenses and attorney's fees in connection with the litigation resulting in the judgment or award (other than expenses or fees paid by the workplace harassment plaintiff or claimant); or
  • for insurance covering the defense or liability of the underlying claims in the litigation.

The bill also (1) excludes from gross income amounts received in connection with a judgment, award, or settlement related to workplace harassment, including sexual harassment or other unlawful discrimination; and (2) limits the taxation of and the application of the alternative minimum tax to compensation received under a settlement or judgment for employment discrimination.

Bill Title

EMPOWER Act—Part 2

Linked Goals

Steps

  • 2019-02-27: Read twice and referred to the Committee on Finance.
  • 2019-02-27: Introduced in Senate

Projected Outcome

A more informed proposal or public response aligned with the Promote General Welfare goal.