Increased priority for wages

Section 507(a) of title 11, United States Code, is amended— (1) in paragraph (4)— (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (B) in the matter preceding clause (i), as so redesignated, by inserting (A) before Fourth; (C) in subparagraph (A), as so designated, in the matter preceding clause (i), as so redesignated— (i) by striking $10,000 and inserting $20,000; (ii) by striking within 180 days; and (iii) by striking or the date of the cessation of the debtor’s business, whichever occurs first; and (D) by adding at the end the following: (B) Severance pay described in subparagraph (A)(i) shall be deemed earned in full upon the layoff or termination of employment of the individual to whom the severance pay is owed.; and (2) in paragraph (5)— (A) in subparagraph (A)— (i) by striking within 180 days; and (ii) by striking or the date of the cessation of the debtor’s business, whichever occurs first; and (B) by striking subparagraph (B) and inserting the following: (B) for each such plan, to the extent of the number of employees covered by each such plan multiplied by $20,000..