As expected, many of the failed labor and employment-related bills from the 110th Congress are being recycled this year. Just last week, the Eagle Employers Act (H.R. 989) was reintroduced by Rep. Jim Gerlach (R-PA). This bill would use the tax code as an incentive to encourage U.S. companies to create and maintain domestic jobs instead of outsourcing positions abroad. The Act would provide a 1% tax credit to employers with 50 or more employees that do the following:

• Maintain their headquarters in the United States;
• Pay at least 60% of their employees’ health care premiums;
• Maintain or increase the number of their full-time workers in the United States relative to their full-time workers outside of the country;
• Provide full differential salary and insurance benefits for all National Guard and Reserve employees called to active duty; and
• Provide its employees with certain higher levels of compensation and retirement benefits.

The bill may garner wider appeal and pass in some form during this legislative session for the following reasons: 1) the choice to become an “Eagle Employer” is completely voluntary; 2) the bill had bi-partisan support in the last Congress; and 3) President Obama has emphasized the need to create jobs for Americans.

This bill was referred to the House Committee on Ways and Means.