S 1381 · in committee · major
Protecting Employees and Retirees in Business Bankruptcies Act of 2025
- labor
What this bill does
- This bill increases wage claim limits in bankruptcy from $10,000 to $20,000 and prioritizes employee benefits and back pay.
- Employees, retirees, and their benefit plans are protected by restricting executive compensation during company reorganizations.
- Changes take effect upon enactment and apply to Chapter 11 bankruptcy proceedings going forward.
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Community Threads
Started by Cosponsor
- 01
How might raising wage claim limits from $10,000 to $20,000 affect the likelihood that employees recover back pay in Chapter 11 bankruptcies?
- 02
What trade-offs could emerge between protecting employee wages and ensuring companies have enough resources to reorganize and rehire workers?
- 03
How would restricting executive compensation during reorganization influence management decisions about whether to pursue bankruptcy versus other financial options?
Cosponsor writes these to seed civic discussion — they aren't user posts. Sign in to reply.

Sponsor · D-IL
Richard J. Durbin
Citizen cosponsors
0
In Congress
5/ 100
Senators cosponsoring
Introduced 2025-04-09
Joining the bill
Legislative timeline
2025-04-09 · senate · IntroReferral
Read twice and referred to the Committee on the Judiciary. (text: CR S2523-2527)
2025-04-09 · IntroReferral
Introduced in Senate

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