Employment Benefits in Bankruptcy (CRS Report for Congress)
Premium Purchase PDF for $24.95 (14 pages)
add to cart or
subscribe for unlimited access
Pro Premium subscribers have free access to our full library of CRS reports.
Subscribe today, or
request a demo to learn more.
| Release Date |
June 19, 2003 |
| Report Number |
RL30641 |
| Report Type |
Report |
| Authors |
Robin Jeweler, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
This report provides an overview of the status of employee wages and benefits, including retiree benefits, when an employer files in bankruptcy. Private pensions, regulated by the Employee Retirement Income Security Act, are generally protected. Health and life insurance benefits, which are not required by federal law, are more vulnerable to an employer's bankruptcy-driven modification or termination. This report examines special provisions in the U.S. Bankruptcy Code which govern the priority of employee wage and benefit claims; procedures for a chapter 11 debtor to modify benefits under a collective bargaining agreement; and, procedures for a chapter 11 debtor to modify retiree life and health insurance benefits.
