UPDATE: H.R.7370 – Protecting Employees and Retirees in Business Bankruptcies Act of 2020

LATEST ACTION: September 29, 2020 - Ordered to be Reported (Amended) by Voice Vote.

BILL TITLE: Protecting Employees and Retirees in Business Bankruptcies Act of 2020

BILL SUMMARY:

Protecting Employees and Retirees in Business Bankruptcies Act of 2020

This bill modifies provisions related to Chapter 11 bankruptcy, which typically involves the reorganization of a debtor company's assets and debts. Specifically, the bill (1) expands available claims and priorities for employees and retirees, and (2) places additional restrictions on the compensation of executives and other high level employees.

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 and contributions to an employee benefit plan;

-- 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

-- allows claims related to pension losses.

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.

[NOTE: The contents of this legislative update are current as of 06:00 AM on October 5, 2020.]

BILL NUMBER: 116th Congress: House Bill 7370 (H.R.7370)

CHAMBER OF ORIGIN: U.S. House of Representatives

CURRENT CHAMBER: U.S. House of Representatives

For DETAILED LEGISLATIVE INFORMATION on H.R.7370, visit: https://www.congress.gov/bill/116th-congress/house-bill/7370

BILL TEXT: https://www.congress.gov/bill/116th-congress/house-bill/7370/text

ACTIONS-TO-DATE (ordered by most recent first):

09/29/2020 -- House -- Ordered to be Reported (Amended) by Voice Vote.

09/15/2020 -- House -- Committee Consideration and Mark-up Session Held.

06/25/2020 -- House -- Referred to the House Committee on the Judiciary.

06/25/2020 -- House -- Introduced in House.

SPONSOR(S)*:

-- Rep. Nadler, Jerrold [D-NY-10]

CO-SPONSOR(S)*:

[*Note: Sponsors and co-sponsors are current as of September 29, 2020. For the most up-to-date version of the sponsor and co-sponsor lists, visit: https://www.congress.gov/bill/116th-congress/house-bill/7370/cosponsors ]

-- Rep. Norcross, Donald [D-NJ-1]

-- Rep. Cicilline, David N. [D-RI-1]

-- Rep. Demings, Val Butler [D-FL-10]

-- Rep. Johnson, Henry C. "Hank," Jr. [D-GA-4]

-- Rep. Jayapal, Pramila [D-WA-7]

-- Rep. Scanlon, Mary Gay [D-PA-5]

-- Rep. Dean, Madeleine [D-PA-4]

-- Rep. Garcia, Sylvia R. [D-TX-29]

-- Rep. Brownley, Julia [D-CA-26]

-- Rep. Visclosky, Peter J. [D-IN-1]

-- Rep. Levin, Mike [D-CA-49]

-- Rep. Napolitano, Grace F. [D-CA-32]

-- Rep. Davis, Danny K. [D-IL-7]

-- Rep. Cooper, Jim [D-TN-5]

-- Rep. Pocan, Mark [D-WI-2]

-- Rep. Schakowsky, Janice D. [D-IL-9]

-- Rep. Pingree, Chellie [D-ME-1]

-- Rep. Beatty, Joyce [D-OH-3]

-- Rep. Lowenthal, Alan S. [D-CA-47]

-- Rep. Omar, Ilhan [D-MN-5]

-- Rep. Escobar, Veronica [D-TX-16]

-- Rep. Swalwell, Eric [D-CA-15]

-- Rep. Hastings, Alcee L. [D-FL-20]

-- Rep. Lieu, Ted [D-CA-33]

-- Rep. Jackson Lee, Sheila [D-TX-18]

-- Rep. Smith, Adam [D-WA-9]

-- Rep. Neguse, Joe [D-CO-2]

-- Rep. Kildee, Daniel T. [D-MI-5]

COMMITTEES: House Judiciary Committee.

SUBJECTS: Bankruptcy, Corporate finance and management, Employee benefits and pensions, Health care costs and insurance, Labor-management relations, Securities, Unemployment, Wages and earnings.