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  1. #1
    dittomom2 Guest

    Followup questions - employee wages and employer Chapter 11 bankruptcy

    What is the name of your state? live/work in CA, employer in NC

    Timeline : Sept 13, employer 'X''s (a Nevada corporation) offices are taken over by new company 'Y' (led by former CEO of 'X'), who bought out 'X's' bank loan that was in default, all employees laid off (verbally). Sept 15, new company 'Y' asks me to work for them. I said yes. Sept 20, employer X files Chapter 11, and files adversary suit against new company 'Y' for taking over offices and business.

    Oct 3. I am expecting a paycheck tomorrow from new company 'Y' for work done from Sept 21-30. No wages have been paid to me for work Sept 1-20.

    Question 1.: Do I need to file a claim with bankruptcy court to get paid for earned wages and unpaid expense reports, or is paying employee wages and expenses part of the normal proceedings?

    Question 2: Am I putting myself in any legal jeopardy by accepting wages from new company 'Y'?

    This is a very small company, ceo of X and ceo of Y started the business together many years ago. As of Oct 1, they appear to be trying to work together to resolve this mess, but meanwhile I don't a full paycheck. And I can't really file for unemployment.

    Thanks for your response.

    Ann
  2. #2
    loku Guest
    QUESTION 1.: DO I NEED TO FILE A CLAIM WITH BANKRUPTCY COURT TO GET PAID FOR EARNED WAGES AND UNPAID EXPENSE REPORTS, OR IS PAYING EMPLOYEE WAGES AND EXPENSES PART OF THE NORMAL PROCEEDINGS?
    In this case, you should file a claim in bankruptcy court for your wages—all that are due. You have no reason to trust these people to do the right thing.

    QUESTION 2: AM I PUTTING MYSELF IN ANY LEGAL JEOPARDY BY ACCEPTING WAGES FROM NEW COMPANY 'Y'?
    If you have done nothing wrong in earning the wages, then there is no legal jeopardy. Wages have a very hight priorigy in bankruptcy.

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