Priority for severance pay and contributions to employee welfare benefit plans
Title III — Protecting workers when companies go bankrupt
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Section 503(b) of title 11, United States Code, is amended— (1) in paragraph (8)(B), by striking and at the end; (2) in paragraph (9), by striking the period and inserting a semicolon; and (3) by adding at the end the following: (10) severance pay owed to employees of the debtor (other than to an insider of the debtor or a senior executive officer of the debtor), under a plan, program, or policy generally applicable to employees of the debtor (but not under an individual contract of employment), or owed pursuant to a collective bargaining agreement, for layoff or termination on or after the date of the filing of the petition, which pay shall be deemed earned in full upon such layoff or termination of employment; and (11) any contribution due on or after the date of the filing of the petition under an employee welfare benefit plan, as defined in section 3 of the Stop Wall Street Looting Act..