When can I expect to get my last paycheck after company files bankruptcy?
State/Country relating to question: Oregon
nothing, I just got this information.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
This is a common situation, if your employer has filed bankruptcy, the Court does not require them to pay the Wages owed to their employees, in fact you may not receive wages, what you will be receiving from the bankruptcy Court is a proof of claim letter which you have to file claiming how much is owed to you.
If the employer filed a chapter 11, that would be best, XXXXX XXXXX would be trying to continue to operate, in Chapter 11, your wages are part of the restructuring plan and will continue to be paid. In the case of Chapter 7, your employer may not have enough money to pay any creditors, including employees, in which case you will not get your money. In all cases of bankruptcy, employee wages are considered a top priority. Once you know your employer has filed bankruptcy you can contact the bankruptcy trustee to file as a preferred creditor. This standing means the money the company has will be used to pay you before it is used to pay most other creditors. Employees come ahead of suppliers, landlords etc
If you have not been paid, either way, contact the State department of labor and advise them of the fact, as in OR, you are to be paid as per the law. They will advise you if the company actually filed a bankruptcy and what type.
Under OR law, If you are fired, the employer must pay you the next business day.
Lay offs. If you are (honestly) laid off, then you get paid on the next regular payday. But what is a "lay off" under Oregon law? For purposes of the final paycheck rules, if there is no recall date or the layoff will last more than 35 days, then the termination rules apply, and you must be paid on the next business day.
Resignation or quit. The answer depends on the situation. If you give two-weeks resignation notice, and the employer fires you on the spot, then the termination rules apply. If you give at least 48 hours notice, then an Oregon employer must pay you on your last day. If the employee quits with less than 48 hours notice, then an Oregon employer must give you the severance paycheck on the sooner of (a) the next regular payday or (b) five business days.
Exceptions. As with most laws, there are exceptions to every rule, which is why you should never rely on the stuff you read on the Internet. The biggest exception is for union workers, who are paid according to final paycheck rules in the collective bargaining agreement.
10 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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