Legal Question in Employment Law in Pennsylvania

chapter eleven bankruptcy

The company my husband works for has recently filed for chapter eleven bankruptcy. Currently they owe him over $1500 in expense checks. In addition, his paydays are now becoming 3-4 days past the scheduled weekly payday. We are worried that they will close the doors and he will not be able to collect the expense check money, or continue to get a paycheck at all. The expenses are part of his sales job.

If we are able to file a complaint with the Dept. of labor, can his company terminate his employment? We live in Pennsylvania which is an at will state.

Are they protected from paying us the expense money due to chapter eleven? The majority of the expense checks were filed before the company filed for chapter eleven.

In addition, what happens when the company misses the date of the payday? Is there a labor law that requires the company to pay the employees' salary at the scheduled time, or is there a certain timeline?

Any information you can provide would be very helpful.


Asked on 12/01/02, 4:50 pm

1 Answer from Attorneys
Thomas Martin Law Office of Thomas Martin

Re: chapter eleven bankruptcy

Under the Pennsylvania Wage Payment and Collection law, officers and directors of a corporation may be held responsible for unpaid wages. "Wages" includes expense reimbursement in most cases. Therfore, even if the company is unable to pay, you should be able to hold the individuals involved responsible. Some delay in getting paid may be inevitable, however, while the company attempts to reorganize.

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Answered on 12/02/02, 8:43 am


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