Durbin, Hawley Introduce Bipartisan Bill To Protect Employees When Businesses File For Bankruptcy

WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, and U.S. Senator Josh Hawley (R-MO) today introduced theProtecting Employees and Retirees in Business Bankruptcies Act.  The bipartisan legislation would correct abuses of the bankruptcy process that deprive employees and retirees of their hard-earned wages, benefits, and retirement savings.
As businesses’ bankruptcy filings have increased, jobs, pensions, and long-promised benefits are at risk.  Yet, laws have not adapted to give employees and retirees a fair shake in the bankruptcy process.  TheProtecting Employees and Retirees in Business Bankruptcies Actwould modify Chapter 11 bankruptcy procedures by expanding available claims for employees and retirees and granting them improved priority, while placing restrictions on excessive compensation for executives.
“When their company files for bankruptcy, employees should not have to worry that they will lose their hard-earned wages, benefits, and retirement savings,”said Durbin.“TheProtecting Employees and Retirees in Business Bankruptcies Actwould ensure that all employees, not just C-suite executives, receive the benefits they were promised.”
“Employees shouldn’t be the ones left holding the bag when companies go under.  Rather than giving precedence to the desires of predatory creditors, we should prioritize workers and protect the compensation they’ve earned through years of hard work,”said Hawley.“Our bill would safeguard workers’ claims to wages, benefits, and retirement funds throughout bankruptcy proceedings.”
“For far too long, our country’s corporate bankruptcy laws have prioritized executives and investors over the workers who face the most devastating impacts of any employer’s bankruptcy,”said Teamsters General President Sean M. O’Brien.“The Teamsters Union applauds Sen. Durbin and Sen. Hawley for their bipartisan approach, and our union will fight aggressively for the passage of this important legislation. If America is truly going to look out for workers, we have got to stop putting corporate interests ahead of working people and retirees. Workers have earned every dime and they must be first in line.”
Specifically, theProtecting Employees and Retirees in Business Bankruptcies Actwould:
Cosponsoring the legislation are U.S. Senators Brian Schatz (D-HI), Tammy Duckworth (D-IL), Amy Klobuchar (D-MN), and Sheldon Whitehouse (D-RI).
TheProtecting Employees and Retirees in Bankruptcies Acthas earned the endorsement of the International Brotherhood of Teamsters; AFL-CIO; American Federation of Teachers; Transport Workers Union; United Mine Workers of America; Airline Pilots Association; Alliance for Retired Americans; and the Association of Professional Flight Attendants.
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