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S 1381 · in committee · major

Protecting Employees and Retirees in Business Bankruptcies Act of 2025

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

  1. 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?

  2. 02

    What trade-offs could emerge between protecting employee wages and ensuring companies have enough resources to reorganize and rehire workers?

  3. 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

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In Congress

5/ 100

Senators cosponsoring

Introduced 2025-04-09

Joining the bill

Legislative timeline

  1. 2025-04-09 · senate · IntroReferral

    Read twice and referred to the Committee on the Judiciary. (text: CR S2523-2527)

  2. 2025-04-09 · IntroReferral

    Introduced in Senate

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