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Am I entitled to my accrued PTO when a company declares bankruptcy?

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New member

At the end of August, the company I was working for declared bankruptcy. It was an LLC, and the case is still going on in Nebraska bankruptcy court.

They paid my final paycheck, but I have not been paid 40 hours of PTO.

According to a representative at the Nebraska Board of Labor, the company is not required to pay this, however Nebraska State law states that there is no exception to a rule stating that companies must pay PTO to employees who have been let go.

The representative also suggested that I file a claim on the bankruptcy court website, but there is a lot of jargon and language that I don't understand, and I don't want to be responsible for filing a fraudulent claim.

Can anyone help with some answers or advice?



I'm a Northern Girl
Why did the Board of Labor representative say that they company was not required to pay? What reason did they give?


I'm a Northern Girl
Well, there is something to that. A certain proverb about blood and turnips comes to mind.

Sounds like filing a claim she suggested is about the only way to go.


Senior Member
Well, there is something to that. A certain proverb about blood and turnips comes to mind.

Sounds like filing a claim she suggested is about the only way to go.
I agree, but I wouldn't hold out much, if any hope that filing a claim will result in actually getting paid.


Senior Member
PTO and other benefits due are included with wages in being a "priority" claim in bankruptcy which gets you ahead of most of the unsecured debts. However, if there's no money, there's no money...

You should inquire who is the trustee and make sure you make your claim.
Your Paid Time Off is a claim in the bankruptcy and might be paid if there are funds to pay it. File a Proof of Claim and hope that there will be funds available for distribution - but don't count on it.

Your claim is a "priority claim" up to $12,850 for "wages, salaries or commissions, including vacation, severance, and sick leave pay earned by an individual" within the 180 days before the case was filed. Your claim is a "general unsecured claim" for any amount over $12,850 and/or for any amount due that is outside the 180 day window. See 11 USC 507(a)(4)



Senior Member
Aside from the obvious problem to squeeze blood out of a turnip, others here may have better knowledge as to if federal bankruptcy law is in lieu of state wage payment laws or in addition to state wage payment laws .

Plus is some States , directors can be personally liable for failure to pay wages ( or things classified as wages by state law ). ...and I simply don't know what applies in Neb.

Follow Des above and file a proof of claim ...if you fal to file a proof of claim you can kiss that option good bye so get to it!

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