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Ch 11 and wage claims Illinois

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  • Ch 11 and wage claims Illinois

    I have unpaid vacation time after being terminated. The employer is saying they cannot pay out the full amount immediately but will repay over a four month period. If the employer files for Chapter 11; and I file a Wage Claim with the Ill Dept of Labor before the employer files for Ch 11.....will the Bankruptcy Court view the Wage Claim as being a higher priority than other creditors? Or is filing the Wage Claim or going to Small Claims Court a mute point?

  • #2
    Interesting question. Really.

    Some (maybe most) states have a pool of money to pay employees of companies that go belly up before paying the employee for wages earned, but I have NO idea if that pool extends to earned, unpaid vacation in my state or any other state.

    I will have to do some research on this subject.

    I have no idea how the Bankruptcy Court would treat your claim for unpaid vacation time.
    Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.