October 15, 2021
The House Financial Services Subcommittee on Consumer Protection and Financial Institutions discussed a measure that would impose an annual pay ratio tax, significant reporting requirements, and other labor and employment mandates on companies in the financial services sector.
As currently drafted, the Financial Services Bill of Rights Act would:
Each financial institution would be required to file an annual or quarterly report to disclose:
Outlook: Representative Maxine Waters (D-CA), Chair of the House Committee on Financial Services, is expected to formally introduce the bill, which is currently in draft form. In the meantime, HR Policy Association proactively provided feedback to Committee staff, expressing our concerns with the measure's pay ratio, union organizing, and additional disclosure requirements. While we anticipate introduction of this bill, it may only serve as a messaging tactic without being considered for a House floor vote. However, it is important to take note of this proposal as we expect to see more of these types of initiatives in the current Congress and administration.