Back wages due to furloughed employee
Question Details: I was put on furlough on August 10, 2009, after nearly two years of service. I am a salaried employee and I am owed over $1,500 in back wages. I have a claim number which I filed with NYS Dept. of Labor. I have made numerous attempts to my employer asking for my paycheck. Last Saturday, 10/31 I received a note and a direct deposit stub for $300 from my employer asking me to accept this as partial payment. Today I receive notice that my employer has filed Chapter 7. What can I do to obtain the rest of my wages and vacation time due? There is a hearing schedule for November 19th.
Employment and Labor Law Answers
You should check with the Department of Labor to make sure, but I'd expect that your claim will be safely made part of the company's bankruptcy proceeding for you. I can't tell you, though, just how long you will have to wait for the rest of your money.
The good news is, claims for back wages get a higher priority, in getting paid from whatever assets are available, than almost any other debt the company might have, with the big exception being back taxes, which always get paid first. You and anyone else claiming back wages from the company will be paid before, for example, the company's bank, landlord or suppliers.
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