Reward Work Act
Sponsored By: Representative García, Jesús G. "Chuy" [D-IL-4]
Introduced
Summary
Ban on on-exchange stock buybacks would stop listed companies from repurchasing their own shares on national securities exchanges and pair that ban with a requirement for worker-chosen directors. The bill combines a market conduct change with a corporate governance mandate aimed at shifting buyback practice and board composition.
Show full summary
- Workers: Employees would elect at least one-third of a listed company's directors in one-employee-one-vote elections. The Securities and Exchange Commission would write rules to ensure those elections are fair and companies meet the 1/3 target within 2 years.
- Investors: Issuers would be prohibited from buying their own equity on national exchanges and the bill would remove the SEC buyback safe harbor, Rule 10b-18, limiting a common path for repurchases.
- Listed companies and exchanges: Firms could still pursue tender offers under existing rules, but listing on a national exchange would require compliance with the employee-director threshold and follow-up regulations from the SEC.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Ban on public-company share buybacks
If enacted, the bill would bar any issuer from buying its own equity on a national securities exchange. It would also state that 17 C.F.R. §240.10b-18, the SEC safe-harbor for certain buybacks, would have no force or effect. The bill clarifies that tender offers covered by existing SEC rules would not be affected. The prohibition would apply on enactment and uses the Securities Exchange Act definitions for "issuer," "equity security," and "national securities exchange."
Employees elect one-third of boards
If enacted, the bill would require public companies that register on a national securities exchange to have at least one-third of their board directors elected by the company’s employees. Employee directors would be chosen in one-employee–one-vote elections. The SEC would write rules, in consultation with the NLRB, to ensure fair elections and to make the one-third employee representation happen within two years of enactment. The bill relies on existing federal definitions for "employee" and "director."
Sponsors & CoSponsors
Sponsor
García, Jesús G. "Chuy" [D-IL-4]
IL • D
Cosponsors
Khanna
CA • D
Sponsored 4/30/2026
Rep. Hoyle, Val T. [D-OR-4]
OR • D
Sponsored 4/30/2026
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 5/11/2026
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 5/11/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 5/11/2026
Johnson (GA)
GA • D
Sponsored 5/11/2026
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 5/13/2026
Grijalva
AZ • D
Sponsored 5/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov