According to a recent press release, Senator Dick Durbin (D-IL) and Representative John Conyers (D-MI) have introduced legislation that would create a fairer environment for employees in wage and benefits disputes.

Named the Protecting Employees and Retirees in Business Bankruptcies Act (S. 3033, H.R. 4677), the legislation would “ensure that back pay awarded through [the Worker Adjustment and Retraining Notification (WARN) Act] damages would be given priority in the bankruptcy claims process.”

The Act would also limit bonuses that could be distributed when a company becomes bankrupt.

Historically, the U.S. Army and other branches of the federal government are where the first conscious efforts of employee performance review were instituted; however, the employers were more focused on personality traits than behavior and results.

In fact, General Cass, who is credited with the first-known, formal evaluation of soldiers in 1813, treated the process with a good bit of humor, “This officer has talents, but has kept them well hidden” and “He is open to suggestions, but never follows same.” Since the general had established no specific goals for his men, he was left with a half-hearted attempt that was of no value to anyone, except as a chuckle during the officer’s mess.
Lord & Taylor, a New York department store, may have been the first private business to implement a formal evaluation procedure of its employees, which motivated other businesses, following World War I, to do likewise.

Although government and business have made numerous attempts to develop a “universal” evaluation system throughout the 20th century (and into the 21st), today half of all large businesses and most of small businesses either do not have formal employee performance reviews or still incorrectly focus their reviews on traits instead of results.