Legal Question in Employment Law in Maryland

I was not paid for the last 5 months of my employment with company A. They are filing Chapter 11 today after 30 days of my termination. What are the chances of getting my backwages? they have to pay IRS a huge money too. Will my salary for past 90 days from today will be given highest priority? Atleast I will get 2 months of salary?? Employer says there will not be fund to give after paying IRS. Please suggest ...


Asked on 1/27/10, 1:13 pm

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

Hello. Maryland has wage and hour laws that give you two options with an employer who fails to pay wages. You can either report this to appropriate governmental officials who can investigate and take action or you can sue the company for up to three times the wages withheld. Bankruptcy does complicate this right to sue -- once the company files for bankruptcy, collection efforts must usually be put on hold.

In the bankruptcy proceedings your wages should be listed as an obligation and you are technically a creditor (that is, someone to whom the company owes money). You may have priority over other claims but that does not guarantee payment. Under these circumstances, you have certain rights in the bankruptcy proceedings. This can get complicated and it is very difficult to give a precise answer as to how much you may eventually receive without an attorney actually knowing what assets and debts the employer has.

You may find it helpful to engage the services of an attorney to review the bankruptcy filing and help you assert your claims.

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Answered on 2/02/10, 7:03 am


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