I 
116TH CONGRESS 
2D SESSION 
H. R. 7279 
To amend title 11 of the United States Code to prohibit the payment of 
bonuses to highly compensated individuals employed by the debtor and 
insiders of the debtor to perform services during the bankruptcy case, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2020 
Mr. STEUBE 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 prohibit 
the payment of bonuses to highly compensated individ-
uals employed by the debtor and insiders of the debtor 
to perform services during the bankruptcy case, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Bonuses Ahead 
of Bankruptcy Filing Act of 2020’’. 
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SEC. 2. AMENDMENT. 
Section 503 of title 11 of the United States Code is 
amended by adding at the end the following: 
‘‘(d)(1) During the 2-year period ending 1 year after 
the date of the filing of the petition and notwithstanding 
any other provision of this section, there shall neither be 
allowed nor paid a bonus to— 
‘‘(A) an individual employed by the debtor at an 
annual rate of compensation exceeding $250,000; 
‘‘(B) an insider of the debtor; or 
‘‘(C) an individual employed by the debtor to 
the extent that such bonus would cause that individ-
ual’s annual rate of compensation to exceed 
$250,000. 
‘‘(2) For purposes of this subsection, the term ‘bonus’ 
means a transfer to, or obligation incurred for the benefit 
of, an individual employed by the debtor or insider of the 
debtor as compensation for services in an amount that— 
‘‘(A) is in addition to the existing wages, salary, 
or base compensation of an insider of the debtor or 
individual employed by the debtor; and 
‘‘(B) can be construed as a form of retention, 
incentive, or reward related to the services provided 
to the debtor by the insider or the individual em-
ployed by the debtor. 
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The term ‘bonus’ does not include a sales commission. Nor 
does the term ‘bonus’ include any transfer or obligation 
pursuant to the terms of a collective bargaining agree-
ment. 
‘‘(3) The term ‘an individual employed by the debtor’ 
includes, but is not limited to, an employee, consultant, 
or contractor.’’. 
SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendment made by this Act 
shall take effect on the date of the enactment of this Act. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by this Act shall apply only with respect to cases 
commenced under title 11 of the United States Code on 
or after the date of the enactment of this Act. 
Æ 
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