Employment Contract Protection Act of 2001

Employment Contract Protection Act of 2001 - Amends the Federal bankruptcy code with respect to priority of claims to revise the third level of priority (allowed unsecured claims) to repeal the limitation of claims to $4,000 of wages, salaries, or commissions earned by an individual or corporation within 90 days before the filing date of debtor's petition in bankruptcy or the debtor's cessation of business (thus allowing any such claim earned before petition filing or business cessation).

Revises the fourth level of priority, allowed unsecured claims for contributions to an employee benefit plan, to: (1) repeal the limitation to claims arising from services rendered within 180 days before petition filing or business cessation, thus allowing any claim for services rendered before such date; and (2) reduce the current deduction from such amount to a deduction of only the aggregate amount paid by the estate in bankruptcy on behalf of such employees to any other employee benefit plan.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3415 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3415

  To amend title 11 of the United States Code to extend the priority 
   provided to claims for compensation and benefits of all employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2001

 Mr. Kucinich introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend title 11 of the United States Code to extend the priority 
   provided to claims for compensation and benefits of all employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employment Contract Protection Act 
of 2001''.

SEC. 2. AMENDMENTS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) in paragraph (3) by striking ``, but only'' and all 
        that follows through ``90 days'', and inserting ``earned'', and
            (2) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``within 180 days'', and
                            (ii) by striking ``but only'' and inserting 
                        ``less'', and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) the aggregate amount paid by the estate on 
                behalf of such employees to any other employee benefit 
                plan.''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendments made by this Act shall take effect on the date of 
the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this Act 
shall apply only with respect to cases pending under title 11 of the 
United States Code in a bankruptcy court of the United States on or 
after the date of the enactment of this Act.
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