Bill > S1381

This bill, the Protecting Employees and Retirees in Business Bankruptcies Act of 2025, aims to strengthen protections for workers and retirees during corporate bankruptcy proceedings. The legislation makes several key changes to existing bankruptcy law, including increasing wage and benefit priorities, limiting executive compensation, and providing more robust protections for employees and labor organizations. Specifically, the bill raises the priority for unpaid wages from $10,000 to $20,000, allows employees to make claims for stock value losses in defined contribution plans, provides greater protections for collective bargaining agreements, and restricts executives from receiving excessive compensation or bonuses while workers face benefit reductions. The bill also establishes new requirements for bankruptcy courts to consider job preservation and employee welfare when approving corporate reorganization plans. Additionally, it creates mechanisms for recovering executive compensation if employees' benefits are significantly reduced and provides labor organizations with more input and legal standing during bankruptcy proceedings. The legislation responds to concerns that current bankruptcy laws disproportionately favor corporate management over workers' interests, particularly in large and complex business bankruptcies.

Justice

https://www.congress.gov/bill/119th-congress/senate-bill/1381/all-info