U.S. Senator Josh Hawley (R-Mo.) joined U.S. Senator Dick Durbin (D-Ill.) in reintroducing the Protecting Employees and Retirees in Business Bankruptcies Act. The bill would empower rank-and-file employees whose companies are facing bankruptcy, allowing them to retain more of their wages, benefits, and retirement savings when their employer files for bankruptcy. The Senators previously introduced the legislation in 2024.
Currently, the law fails to adequately look out for employees during bankruptcy proceedings. Instead, it prioritizes creditors. The Protecting Employees and Retirees in Business Bankruptcies Act would put workers first, granting employee claims higher priority and placing restrictions on golden parachutes for executives.
“Employees shouldn’t be the ones left holding the bag when companies go under. Rather than giving precedence to the desires of predatory creditors, we should prioritize workers and protect the compensation they’ve earned through years of hard work,” said Senator Hawley. “Our bill would safeguard workers’ claims to wages, benefits, and retirement funds throughout bankruptcy proceedings.”
“When their company files for bankruptcy, employees should not have to worry that they will lose their hard-earned wages, benefits, and retirement savings,” said Senator Durbin. “The Protecting Employees and Retirees in Business Bankruptcies Act would ensure that all employees, not just C-suite executives, receive the benefits they were promised.”
Senator Hawley has been a staunch supporter of workers’ rights. He was a leading voice in confirming pro-worker Labor Secretary Lori Chavez-DeRemer. Last month, he sponsored the Faster Labor Contracts Act, which would speed up first contracts for new unions. In addition, he has 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.
Read the text of the legislation here.