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Are wages paid to an employee when a company files for Chapter 7?
Wiki User
∙ 14y ago
Generally yes. The larger the Co the more so. Within a few days of filing the Court will grant the approval to pay wages and whatever is vital), while the company irderly liquidates. It is likely they will put a limit (normally very high) on how much can be paid now, and things like expense accounts/reimbursement may not be included. While perhaps not actually legally so, the Courts and most everyone involved in a BK give getting the employees paid the highest of priorities.
Wiki User
∙ 14y ago
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What percentage can a company garnish an employee's wages?
First, a company can not garnish an employee's wages. A court order is required to begin a garnishment of wages which a company is legally required to follow. Federal law mandates that a maximum of 60% of an employee's income can be garnished. This amount is determined by a judge and varies from situation to situation.
Can an employer withhold wages while employee is still working for the company?
Nope
What happens to your wage garnishment when the company files bankruptcy?
your wages still garnished
Is an employer required by law to notify the employee before garnishing wages?
The company does have to notify the employee before deduct from their wages. Many states have laws covering this and in some states thay cannot deduct without the employee's written authorization.
If an LLC declares bankruptcy how are owed employee wages handled?
If an LLC declares Chapter 11 bankruptcy the employees wages will continue to be paid as normal. However, under a Chapter 7 bankruptcy, the employees are listed as creditors, and wages are paid out with other creditors from any remaining assets, if any remain.
I need to get paid. Company as closed?
Contact your local employment office. If the company is bankrupt then employee wages are one of the first debts paid.
Can a Ca employer hold an employees wages?
There are situations where a California employer can hold an employee's wages. If the employee's wages are being garnished the employer can hold them.
Is an employer responsible for paying wages for an employee serving jury duty in Illinois?
Wages while on jury duty are up to the employer and are usually covered in the company's employee handbook, if one exists. The only requirement is that the employer allow the employee to serve jury duty and deploy no retaliation for time off.
Who is going to pay your wages when your employer files Chapter 11?
The employer. It continues in operation and basically must be able to pay wages or it couldn't do a C 11 and would have had to dissolve. They are paid with the oversight of the court and the creditors committee. It is possible that some benefits may be cut back...as part of making a plan where the company can continue operating...but this is not always true.
If an employee steals from his employer can this amount be added to the employee's wages as taxable income?
This money cannot be added to the employee's wages as taxable income. This money is not theirs and should be reported to the police.
Can an employer garnish wages of an employee that fails to return company property?
No the employer must still until time the employer feels the employee will fail at paying(usually 6 months to pay) then he may discuss with the employee about taking it out of his/her pay.
Can a credit card company garnish your wages in ny state for unsecured debt?
Yup. Though its usually done by a company that buys debts and then files suit. But yes, absolutely.
