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- W2417263670 abstract "Evidences suggest that in many cases, in some states in most cases, employees are unable to enforce judgments they receive against their employers. An employee files a claim against her employer, her claim is declared justified, but the judgment often remains on paper. The employer is bankrupt or otherwise avoids payment. Currently, the most important solution to this problem is the bankruptcy priority. In bankruptcy employees' pre-petition wage claims are paid before other unsecured claims, so employees are more likely to receive full payment. Despite its prevalent use, the article argues that the bankruptcy wage priority is the wrong tool to address the plight of the employees. On the one hand a bankruptcy priority offers employees insufficient help. Often employers do not file for bankruptcy, and even if they do, they may have no assets with which to the pay the employees. On the other hand, the priority creates inefficiencies. The reasons for the employees' preferential treatment are primarily social, but the priority's costs are placed on the unsecured creditors. Instead of the bankruptcy priority the article suggests an insurance based model. The insurance based model, already implemented in many OECD countries, forces all employers and employees to pay a fee to a wage assurance fund, and the fund pays unpaid employees (with favorable judgments) in case of their employer's insolvency. The article justifies the implementation of an insurance based model with several theoretical justifications, and shows its practical advantages over the current legal regime." @default.
- W2417263670 created "2016-06-24" @default.
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- W2417263670 date "2015-01-01" @default.
- W2417263670 modified "2023-09-23" @default.
- W2417263670 title "Getting More Than Justice on Paper: Bankruptcy Priorities and the Crisis of Unpaid Wages" @default.
- W2417263670 hasPublicationYear "2015" @default.
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