Michael Perelman writes: >> Aren't workers' claims capped? Also, do you know of a case when permission >> was >> denied?
No, they are not capped as general unsecured claims. I think you may confusing a separate provision that singles out employee claims for special preferable treatment. Section 507(a)(4) of the Bankruptcy Code provides that claims for wages, benefits, etc. earned within 180 days of the bankruptcy, which are conceptually no different than any other unpaid general unsecured claim as of a bankruptcy, are entitled to a priority payment ahead of all other general unsecured claims up to a maximum of around $11,000. This is really meaningful -- it is normal in chapter 11 for such claims to be paid in full promptly upon the commencement of the bankruptcy case (while other creditors have to wait until the conclusion of the case and may receive pennies on the dollar). This priority is even ahead of unsecured tax claims, which is pretty remarkable. I am separately sending you a law review article that examined the empirical effect of the change in the law protecting labor agreements, which was passed in 1984 in response to a Supreme Court ruling. The article is from 1994, but should get you started. David Shemano _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
