1. Short title This Act may be cited as the Worker Dividend Act of 2018 . 2. Failure of employer to pay worker dividends (a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter: 37 Provisions relating to worker dividends Sec. 4501. Failure of employer to pay worker dividends. 4501. Failure of employer to pay worker dividends (a) General rule If, for a taxable year in which a covered employer repurchases any securities of the employer on the open market, the covered employer fails to pay to its employees a worker dividend meeting the requirements of subsection (b), then there is hereby imposed on the covered employer a tax equal to the lesser of the amounts determined under subparagraphs (A) and (B) of subsection (b)(1). (b) Worker dividend For purposes of this section— (1) In general The term worker dividend means a payment made by a covered employer to employees of the employer at locations in the United States, if the total of all such payments made during the taxable year is not less than the lesser of— (A) the amount paid by the employer to repurchase securities of the employer on the open market during the taxable year, and (B) 50 percent of the amount by which the earnings before interest, taxes, depreciation, and amortization of the employer during the taxable year in the United States exceed $250,000,000. (2) Payments to be in addition to compensation Such term shall not include any payment unless such payment is in addition to, and (including by election of the employee) is not included in (except as provided in paragraph (5)) or substituted for, any cash or other compensation ordinarily paid to the employee by the employer. (3) Payments to be equal Such term shall not include any payment unless the amount of the payment made to each employee of the employer in the United States is of an equal amount. Notwithstanding the preceding sentence, in the case of an employee employed at less than full time, the payment to such employee