Legal Question in Employment Law in Utah

Employer Hasn't Paid Wages

My company laid off all employees (8) about 3 weeks ago because of financial problems. None of us has been paid our wages owed. What will happen if they file bankruptcy? They have an outstanding SBA loan and all equipment, furniture, assets, etc. are attached as collateral. Will we ever be paid? Thank you!


Asked on 9/08/04, 9:57 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Employer Hasn't Paid Wages

I do not know the specifics of the finances of your company. However, unpaid wages are a priority claim in bankruptcy - meaning wages are paid in front of many other claims. Whether or nor you get paid will depend on the amount of money that is raised through liquidation of assets.

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Answered on 9/08/04, 11:26 pm


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