Core Provisions: This legislation would increase available benefits for employees and retirees who suffer losses because of their employers’ bankruptcy. This bill would increase the cap on wage claims from $10,000 to $20,000, permit a second claim for up to $20,000 of benefits earned, and remove the requirement that claims must be for wages and benefits earned within 180 days of the bankruptcy filing. It would also create a new priority claim for stock value losses in workers’ pensions, and establish a new priority administrative expense for severance pay owed under workers’ collective severance programs. The legislation would also limit a trustee’s ability to reject or amend collective bargaining agreements.

Status: H.R.3652 was introduced by Rep. Conyers (D-MI) on September 25, 2007, and was referred to the Judiciary Subcommittee on Commercial and Administrative Law on October 12, 2007. Sen. Durbin (D-IL) introduced S.2092 on September 25, 2007, and it was referred to the Judiciary Committee.