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It does? When I had to wind down a company in Austin, Texas, pretty much everyone in arbitration and court on all sides of the table recognized that workers go
by ci5er 7y ago
It does?
When I had to wind down a company in Austin, Texas, pretty much everyone in arbitration and court on all sides of the table recognized that workers got paid first.
I wonder if that is local?
I seem to remember that just about everyone was terrified of contingent WARN_Act violation related claims that could take up to 4 years to trickle in, and that was definitely federal.
- bluGill 7y agoWorkers generally have everything except the last paycheck already. No sane business (don't take that as any claim that most businesses are sane) doesn't pay their people first. If you don't get a paycheck on a regular basis you won't come back, so even when things are going bad employees are getting their money while suppliers aren't getting anything. When it finally gets to bankruptcy employees aren't really owed much, so it shouldn't matter. Of course there are a lot of assumptions above. If any of the violations happen to you get ready to run before your good time is traded for more bad money.
- ci5er 7y agoFair enough. Thank you. I was mostly addressing the regulatory environment. I do not believe (unless I am very mis-informed) that employee paid wages are at the back-of-the-line in a liquidation procedure.