Temp Staffing Co. - Stuck with payroll

[zoledude]

What is the name of your state? Michigan


I operate a temporary staffing business and one of my industrial customers just notified me that they are unable to keep up with their bills and may close their doors in the next few weeks. Of course, I immediately stopped supplying them with workers.

I have been supplying them with 80 employees and they've been paying me $35-$45k each week however, they still owe me $178,000 for payroll services, all provided to them within the last thirty days.

If they go into bankruptcy, will the money they owe my corporation for employment services be viewed as "wages" affording my company a priority
to be paid before most other creditors, or will it be considered otherwise?

Thanks for any helpful advice.

 

[Beth3]

You're a supplier, not an employee therefore the money they owe you is not wages. YOU owe your employees wages; the company owes you payment for your invoices in the same manner that they owe money to any other supplier.

 

[JETX]

Yep, and even wages are not 'secured'. I know of several (former) employees of bankrupt firms owed wages... and never got a dime.