Hawley, Durbin Reintroduce Bill Protecting Employees of Bankrupt Businesses

For information about Senator Hawley’s new RECA law to compensate Missourians,click here.
Thursday, April 10, 2025
U.S. Senator Josh Hawley (R-Mo.) joined U.S. Senator Dick Durbin (D-Ill.) in reintroducing theProtecting Employees and Retirees in Business Bankruptcies Act.Thebillwould empower rank-and-file employees whose companies are facing bankruptcy, allowing them to retain more of their wages, benefits, and retirement savings when their employer files for bankruptcy. The Senatorspreviously introducedthe legislation in 2024.Currently, the law fails to adequately look out for employees during bankruptcy proceedings. Instead, it prioritizes creditors. TheProtecting Employees and Retirees in Business Bankruptcies Actwould put workers first, granting employee claims higher priority and placing restrictions on golden parachutes for executives.
“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 Senator Hawley.“Our bill would safeguard workers’ claims to wages, benefits, and retirement funds throughout bankruptcy proceedings.”“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 Senator Durbin.“The Protecting Employees and Retirees in Business Bankruptcies Act would ensure that all employees, not just C-suite executives, receive the benefits they were promised.”
Senator Hawley has been a staunch supporter of workers’ rights. He was a leading voice inconfirmingpro-worker Labor Secretary Lori Chavez-DeRemer. Last month, hesponsoredtheFaster Labor Contracts Act, which would speed up first contracts for new unions. In addition, he has stood with and and voted to supportrail workersas they sought a fair deal with sick leave,foughtto keep jobs here in the U.S., andadvocatedfor United States Postal Service workers.Read the text of the legislationhere.

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