§ 28-14-6.1 - Priority of wages due from employer in receivership or insolvency proceedings.
SECTION 28-14-6.1
§ 28-14-6.1 Priority of wages due fromemployer in receivership or insolvency proceedings. – In the event of any distribution of an employer's assets pursuant to an orderof any court under the laws of this state, including receivership, assignmentfor benefit of creditors, adjudicated insolvency, composition, or similarproceeding, the wages or compensation earned and unpaid not exceeding threehundred dollars ($300) to each wage earner earned within three (3) months ofthe commencement of the proceeding shall have the same priority in advance ofpayment of dividends to creditors as is given to wages under the federalBankruptcy Act, 11 U.S.C. § 101 et seq. That amount shall be paid as soonas sufficient sums are available, to employees entitled to the same accordingto the records of the employer; the employees being relieved of the necessityof filing claims with the receiver, assignee, or trustee unless the amountpayable as shown on the books of the employer is not acceptable to anyemployee, in which case, the employee shall file his or her claim in the samemanner as other creditors of the employer.