Senate Bill 4089
116th Congress(2019-2020)
Protecting Employees and Retirees in Business Bankruptcies Act of 2020
Introduced
Introduced
Introduced in Senate on Jun 25, 2020
Overview
Text
Introduced
Jun 25, 2020
Latest Action
Jun 25, 2020
Origin Chamber
Senate
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
4089
Congress
116
Policy Area
Finance and Financial Sector
Finance and Financial Sector
Primary focus of measure is U.S. banking and financial institutions regulation; consumer credit; bankruptcy and debt collection; financial services and investments; insurance; securities; real estate transactions; currency. Measures concerning financial crimes may fall under Crime and Law Enforcement. Measures concerning business and corporate finance may fall under Commerce policy area. Measures concerning international banking may fall under Foreign Trade and International Finance policy area.
Sponsorship by Party
Illinois
California
Minnesota
Rhode Island
Rhode Island
No Senate votes have been held for this bill.
Summary

Protecting Employees and Retirees in Business Bankruptcies Act of 2020

This bill modifies provisions related to Chapter 11 bankruptcy, which typically involves the reorganization of a debtor company's assets and debts. Specifically, the bill (1) expands available claims and priorities for employees and retirees, and (2) places additional restrictions on the compensation of executives and other high level employees.

With respect to employee and retiree recoveries and losses, the bill

  • increases the maximum value and age of specified wage and benefit claims entitled to priority payment;
  • allows certain claims for losses related to defined contribution plans, if the employer or plan sponsor has committed fraud or otherwise breached its fiduciary duty;
  • allows, as an administrative expense of the estate, severance pay owed to employees and contributions to an employee benefit plan;
  • establishes certain restrictions regarding the rejection or amendment of a collective bargaining agreement;
  • revises specified procedures related to the reduction or denial of retiree benefits;
  • requires a court, in approving a sale of business assets, to consider the extent to which a bidder has offered to maintain existing jobs and assume benefit obligations; and
  • allows claims related to pension losses.

With respect to executive compensation, the bill

  • establishes specified limitations related to executive compensation enhancements,
  • prohibits executives from receiving certain retiree benefits if such benefits were reduced or eliminated for other employees or retirees, and
  • revises other requirements related to court approval of such compensation.
Text (1)
Actions (2)
06/25/2020
Read twice and referred to the Committee on the Judiciary. (text: CR S3314-3319)
06/25/2020
Introduced in Senate
Public Record
Created
Jun 26, 2020 4:42:09 AM
Updated
Sep 9, 2020 6:19:33 AM