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U.S. Senator Josh Hawley (R-Mo.) joined U.S. Senator Dick Durbin (D-Ill.) in introducing the Protecting Employees and Retirees in Business Bankruptcies Act. The bill would empower rank-and-file employees in the bankruptcy process, allowing them to retain more of their wages, benefits, and retirement savings when their employer files for bankruptcy.
Current laws don’t prioritize employees during bankruptcy proceedings–they prioritize the bankrupt business’s creditors. This bill would change that, granting employee claims higher priority and placing restrictions on golden parachutes for executives.
“When companies go bankrupt, workers—and not predatory creditors—should be taken care of first. This legislation would prioritize workers’ claims to wages, benefits, and retirement funds in bankruptcy proceedings, protecting compensation earned through years of hard work,” said Senator Hawley.
“Employees should not have to panic that they will lose their hard-earned wages, benefits, and retirement savings when their company files for bankruptcy,” said Senator Durbin. “The Protecting Employees and Retirees in Business Bankruptcies Act would ensure that all employees, not just those at the top, receive the benefits they were promised.”
“America’s corporate bankruptcy laws put executives first and workers last. The system is broken and must be reversed,” said Teamsters General President Sean M. O’Brien. “Greedy corporations are allowed to use bankruptcy to deprive workers and retirees of their hard-fought earnings, while padding the pockets of C-suite executives. The Teamsters Union applauds Sen. Durbin and Sen. Hawley for their bipartisan collaboration to protect working people. We will use the full weight of our powerful union to support such long overdue corporate bankruptcy reform.”
Cosponsoring the legislation are U.S. Senators Brian Schatz (D-Hawaii), Mazie Hirono (D-Hawaii), Tammy Duckworth (D-Ill.), Sherrod Brown (D-Ohio), Jeff Merkley (D-Ore.), and Amy Klobuchar (D-Minn.).
Senator Hawley has been a staunch supporter of workers’ rights. He has co-sponsored the Warehouse Worker Protection Act which prohibits dangerous work speed quotas that lead to high rates of worker injuries, stood with and and voted to support rail workers as they sought a fair deal with sick leave, fought to keep jobs here in the U.S., and advocated for United States Postal Service workers. More information about his past work in support of the American worker can be found on his website.
A copy of the legislation can be found here.