15 U.S.C. § 9096: Limitation on certain…

Summary

The Secretary can only give money to a passenger airline or its contractor if that company signs an agreement that limits pay for certain workers during the two-year period beginning October 1, 2020 and ending October 1, 2022. Any officer or employee who made more than $425,000 in 2019 (except those paid under a collective bargaining deal made before December 27, 2020) cannot earn more in any 12-month span of that period than they did in 2019, and their severance or other termination pay cannot exceed twice what they got in 2019. Any officer or employee who made more than $3,000,000 in 2019 cannot earn in any 12-month span more than $3,000,000 plus half of the amount they made over $3,000,000 in 2019. “Total compensation” means salary, bonuses, stock awards, and other money benefits the airline or contractor gives an officer or employee.

Title 15, §9096

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(a)In general

The Secretary may only provide financial assistance under this part to a passenger air carrier or contractor after such carrier or contractor enters into an agreement with the Secretary that provides that, during the 2-year period beginning October 1, 2020, and ending October 1, 2022—

(1)no officer or employee of the passenger air carrier or contractor whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to December 27, 2020) will receive from the passenger air carrier or contractor—

(A)total compensation that exceeds, during any 12 consecutive months of such 2-year period, the total compensation received by the officer or employee from the passenger air carrier or contractor in calendar year 2019; or

(B)severance pay or other benefits upon termination of employment with the passenger air carrier or contractor which exceeds twice the maximum total compensation received by the officer or employee from the passenger air carrier or contractor in calendar year 2019; and

(2)no officer or employee of the passenger air carrier or contractor whose total compensation exceeded $3,000,000 in calendar year 2019 may receive during any 12 consecutive months of such period total compensation in excess of the sum of—

(A)$3,000,000; and

(B)50 percent of the excess over $3,000,000 of the total compensation received by the officer or employee from the passenger air carrier or contractor in calendar year 2019.

(b)Total compensation defined

In this section, the term “total compensation” includes salary, bonuses, awards of stock, and other financial benefits provided by a passenger air carrier or contractor to an officer or employee of the passenger air carrier or contractor.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This part, referred to in subsec. (a), was in the original “this subtitle”, meaning subtitle A (§§ 401–412) of title IV of div. N of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 2052, which enacted this part and amended section 9041, 9071, and 9074 of this title. For complete classification of subtitle A to the Code, see Tables. Codification Section was enacted as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and also as part of the Consolidated Appropriations Act, 2021, and not as part of the CARES Act which in part comprises this chapter.

§9096 Limitation on Certain Employee Compensation

Summary

Title 15, §9096

Notes & Related Subsidiaries

Editorial Notes

References in Text

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