Legal Question in Employment Law in California

Employer files bankruptcy

I work for a small company (5 employees). After not receiving a paycheck for 3 weeks, my employer announced that he has decided to file bankruptcy. What can I do? If he does file, does that mean that the wages I'm owed get wiped out and I never get paid?


Asked on 7/10/99, 12:06 am

1 Answer from Attorneys
Stuart Kaye Law Offices of Stuart M. Kaye

Re: Employer files bankruptcy

Wages have a priority in bankruptcy proceedings. That means that you may recover your unpaid wages or a proportionate share.

File a claim with the California Labor Commissioner, they may be able to assist you in your recovery, even if the employer files bankruptcy.

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Answered on 7/13/99, 6:00 pm


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