Summary: H.R.138 — 115th Congress (2017-2018)All Information (Except Text)

There is one summary for H.R.138. Bill summaries are authored by CRS.

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Introduced in House (01/03/2017)

Protecting Employees and Retirees in Business Bankruptcies Act of 2017

This bill amends federal bankruptcy law to modify provisions related to Chapter 11 bankruptcy, which typically involves the reorganization of a debtor company's assets and debts. Specifically, the bill modifies provisions governing: (1) employee and retiree recoveries and losses, and (2) executive compensation programs.

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;
  • 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
  • modifies other provisions.

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.

In addition, the bill grants creditor status to labor organizations for purposes of filing a proof of claim.