Columbia Standard

U.S. Senators Dick Durbin (D-IL) and Josh Hawley (R-MO) have introduced the Protecting Employees and Retirees in Business Bankruptcies Act, aiming to address the disadvantages faced by employees and retirees during business bankruptcies. The legislation proposes changes to Chapter 11 bankruptcy proceedings to offer better claims, priorities, and protections for employees, while curbing excessive executive compensation.

Durbin highlighted the current predicament where employees face the risk of losing wages and benefits when their companies declare bankruptcy, stating, "When their company files for bankruptcy, employees should not have to worry that they will lose their hard-earned wages, benefits, and retirement savings."

Echoing this sentiment, Hawley expressed the need to prioritize the protection of workers over creditors in bankruptcy scenarios. "Employees shouldn’t be the ones left holding the bag when companies go under," he said.

Support for the bill comes from multiple organizations, including the Teamsters Union. Sean M. O’Brien, General President of the Teamsters, commended the legislation, stating, "If America is truly going to look out for workers, we have got to stop putting corporate interests ahead of working people and retirees."

Key provisions of the bill include doubling the maximum value of employee wage claims entitled to priority payment, improving the conditions under which collective bargaining agreements are treated, and heightening the threshold for court approval of executive bonuses.

The bill is co-sponsored by Senators Brian Schatz (D-HI), Tammy Duckworth (D-IL), Amy Klobuchar (D-MN), and Sheldon Whitehouse (D-RI). It has also received endorsements from various labor and professional associations.

The Protecting Employees and Retirees in Business Bankruptcies Act seeks to ensure that the main goal of Chapter 11 remains job preservation and the continuation of productive economic activities.