Enhanced Protection for Employees and Retirees in Business Bankruptcies
This act aims to strengthen financial protection for employees and retirees during business bankruptcies. It introduces new rules for overdue wages, severance pay, and retirement benefits, while also limiting high executive compensation during a company's financial distress. This means citizens can expect greater security for their benefits if their employer faces financial difficulties.
Key points
Increased priority for unpaid wages and employee benefits during business bankruptcies.
Allows claims for stock value losses in defined contribution plans if employer fraud caused the loss.
Makes it harder for companies to unilaterally reject collective bargaining agreements and modify retiree benefits, requiring negotiation and court approval.
Restricts high executive compensation and bonuses during bankruptcy, especially when employees face benefit reductions.
Requires bankruptcy reorganization plans to prioritize job preservation and employee benefit maintenance.
Expired
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