S 2092 · 110th Congress 2007–2009, ended

Protecting Employees and Retirees in Business Bankruptcies Act of 2007

Fact sheet

Latest action · Sep 25, 2007 Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S12063-12067)

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedSep 25, 2007
  2. Passed SenateNot reached
  3. Passed HouseNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Protecting Employees and Retirees in Business Bankruptcies Act of 2007 - Amends federal bankruptcy law to increase the maximum amount per individual or corporation of unsecured claims ranked in the fourth (wages, salaries, or commissions) and fifth (employee benefit plan contributions) order of priority.

Includes within the scope of a claim in bankruptcy certain equity securities held in a defined contribution plan for the benefit of certain individuals.

Ranks in sixth order of priority the diminished value of debtor's equity securities held in a defined contribution plan if the employer or plan sponsor committed fraud regarding the plan.

Permits within administrative expenses certain severance pay for termination or layoffs.

Prohibits certain senior executive compensation from being disproportionate in light of economic concessions by debtor's nonmanagement workforce.

Disallows as an administrative expense specified executive compensation enhancements.

Revises requirements governing: (1) rejection of collective bargaining agreements; (2) insurance benefits for retired employees; and (3) the status of certain employee benefits in a sale of business assets.

Allows defined benefit plan participants to file claims for certain shortfalls in pension benefits.

Permits inclusion within the necessary costs and expenses of preserving property the mandatory recovery of unpaid obligations owed to employees.

Directs the court to consider the extent to which alternative reorganization plans maintain: (1) jobs; (2) defined benefit plans; and (3) retiree health benefits.

Prohibits assumption of deferred compensation for the benefit of insiders or senior management if an employee defined benefit plan has been terminated.

Limits the recovery of executive compensation if the debtor has reduced its contractual obligations under either a collective bargaining agreement or retiree benefits plan.

Excepts from an automatic stay: (1) a dispute resolution proceeding established by a collective bargaining agreement prior to commencement of bankruptcy; or (2) an award or settlement under such proceeding.

Authorizes the bankruptcy trustee to avoid transfers made for the benefit of an insider or certain consultants in anticipation of bankruptcy.

Revises prerequisites to court confirmation of a business reorganization plan which continues retiree benefits.

Cosponsors 11

Members who signed on, in the order they did. Signatures ran from Sep 25, 2007 to Nov 17, 2008, with 3 there on the day it was introduced.

SeatCosponsorSigned on
D-ILBarack ObamaOriginalSep 25, 2007
D-MAEdward M. KennedyOriginalSep 25, 2007
D-WIRussell D. FeingoldOriginalSep 25, 2007
D-OHSherrod BrownSep 26, 2007
D-NYHillary Rodham ClintonNov 13, 2007
D-CABarbara BoxerJan 22, 2008
D-IATom HarkinJul 17, 2008
D-NJRobert MenendezJul 28, 2008
D-MAJohn F. KerryJul 31, 2008
D-DEJoseph R. Biden Jr.Sep 15, 2008
D-CTChristopher J. DoddNov 17, 2008

Actions 3

Everything that happened, newest first.

  1. Sep 25, 2007Introduced in Senate
  2. Sep 25, 2007Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S12063-12067)
  3. Sep 25, 2007Sponsor introductory remarks on measure. (CR S12063)

Related bills 1

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
HR 3652Protecting Employees and Retirees in Business Bankruptcies Act of 2007Identical billOct 12, 2007

Subjects

Assigned by the Library of Congress. Policy area: Finance and Financial Sector.

Text 1

Each version as it was printed, newest first.

  1. Sep 25, 2007Introduced in Senate

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.