EXECUTIVE–WORKER PAY ALIGNMENT ACT
Alyce WittensteinSUMMARY
Executive–Worker Pay Alignment Act
The Executive–Worker Pay Alignment Act aligns increases in executive compensation with wage growth for workers at large employers. When a company increases total compensation for its highly paid executives, worker wages must increase by the same percentage during the same fiscal year. If executive compensation does not increase, the Act does not apply.
The Act does not set wages, mandate bonuses, or cap executive pay outright. It targets a specific driver of wage disparity: raising executive pay while leaving workers out. Executive compensation is treated as a connected system, preventing evasion through re-labeling, new executive hires at higher rates, equity restructuring, or compensation paid through affiliates.
PRESS RELEASE
FOR IMMEDIATE RELEASE
WASHINGTON — March 12, 2029 — Legislation introduced in Congress today would require large employers to align increases in executive compensation with wage growth for workers. Under the Executive–Worker Pay Alignment Act, companies that increase total compensation for highly paid executives must increase worker wages by the same percentage during the same fiscal year.
The bill does not set wages or cap executive pay. Instead, it applies only when executive compensation rises, preventing companies from increasing pay at the top while workers are left out. The Act treats executive compensation as a single system—covering salary, bonuses, equity, and other remuneration—and closes loopholes that allow compensation increases through reclassification or new executive hires. Supporters say the measure addresses wage disparity by ensuring executive rewards reflect shared economic outcomes rather than one-sided pay growth.
FULL BILL
EXECUTIVE–WORKER PAY ALIGNMENT ACT
A BILL
To require alignment between increases in executive compensation and worker wage growth at large employers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Executive–Worker Pay Alignment Act.”
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings. Congress finds that—
In recent decades, increases in executive compensation have far outpaced wage growth for workers.
Compensation practices that permit executive pay increases without corresponding worker wage increases contribute to wage disparity and economic inequality.
Corporations operating in the United States benefit from public infrastructure, legal protections, and economic systems supported by public investment.
Aligning increases in executive compensation with worker wage growth promotes shared economic outcomes and long-term stability.
(b) Purpose.
The purpose of this Act is to align increases in executive compensation with worker wage growth, while preserving employer discretion over compensation decisions.
SEC. 3. DEFINITIONS.
Covered Employer.
Any for-profit corporation that employs more than 1,000 employees and reports annual gross revenue exceeding $500,000,000, and that operates in, sells into, or is listed on a United States financial exchange.Covered Executive.
Any employee or officer whose total annual compensation exceeds the threshold for highly compensated employees under section 414(q) of the Internal Revenue Code.Total Executive Compensation.
The aggregate value of all remuneration provided to a covered executive, including salary, bonuses, incentives, equity, deferred compensation, and compensation paid through affiliates or controlled subsidiaries.Workforce.
All non-executive employees employed by a covered employer or its controlled subsidiaries.Median Worker Wage.
The median annual wages of all non-executive employees within the workforce.Controlled Subsidiary.
As defined in section 1563 of the Internal Revenue Code.
SEC. 4. WAGE ALIGNMENT REQUIREMENT.
(a) Triggering Event.
This section applies only in a fiscal year in which a covered employer increases total executive compensation.
(b) Worker Wage Condition.
A covered employer may not increase total executive compensation unless the median worker wage increased during the same fiscal year by the same percentage.
(c) Proportionality Requirement.
The percentage increase in executive compensation may not exceed the percentage increase in the median worker wage.
(d) Anti-Evasion Rule.
Increases include salary changes, bonuses, equity gains, compensation for newly hired executives, affiliate payments, or any restructuring that increases total remuneration.
SEC. 5. COMPLIANCE OPTIONS.
A covered employer complies by:
Increasing worker wages by the same percentage as executive compensation;
Holding executive compensation flat; or
Redirecting excess compensation into worker wages, profit-sharing, or qualified benefit plans.
SEC. 6. DISCLOSURE AND RULEMAKING.
Covered employers shall disclose wage and compensation data annually to the Securities and Exchange Commission. The SEC may issue rules to prevent evasion and standardize reporting.
SEC. 7. ENFORCEMENT.
Non-compliant compensation is non-deductible for tax purposes, subject to civil penalties equal to 200% of excess compensation, and must be clawed back and redistributed to workers or the Treasury.
SEC. 8. EFFECTIVE DATE.
This Act applies to the first full fiscal year following enactment.