An employee of a bankrupt company could be able to receive up to $10,950 in unpaid wages and up to $10,950 in contributions to employee benefit plans, for a total of $21,900 before any money is paid to a consumer to compensate for deposits paid to the company for goods which were never delivered because of the company's going bankrupt.

Question

Quizplus · Accepted Answer

This is true according to the Wage and Hour Division of the US Department of Labor. The maximum amount of unpaid wages and employee benefit plan contributions that can be claimed as priority wage claims in bankruptcy is $10,950 each, for a total of $21,900. Any remaining funds would then be distributed among consumer deposit claims.

An Employee of a Bankrupt Company Could Be Able to Receive