Bill > S2589

This bill, the Protecting Employees and Retirees in Business Bankruptcies Act of 2014, aims to strengthen the protections for workers and retirees when a company files for bankruptcy. It proposes several key changes, including increasing the priority of wage claims so employees can recover more of their unpaid wages, up to $20,000, and expanding the types of claims that receive priority, such as severance pay and damages for violations of the WARN Act (Worker Adjustment and Retraining Notification Act), which requires employers to provide advance notice of plant closings or mass layoffs. The bill also seeks to protect retirement savings by allowing claims for losses in defined contribution plans if fraud or a breach of duty by the employer caused the loss, and by ensuring that retiree benefits are continued at their established levels. Furthermore, it places stricter limits on executive compensation during and after bankruptcy, requiring it to be reasonable and not disproportionate to what non-management employees receive, and allows for the recovery of excessive executive pay. The bill also modifies the process for rejecting collective bargaining agreements, ensuring that unions have a greater role in negotiations and that any modifications are not overly burdensome to employees. Finally, it emphasizes the preservation of jobs and benefits as a primary purpose of business reorganizations under Chapter 11 bankruptcy.