Corporate bankruptcies may have become fairly commonplace in recent years—nearly 9,000 Chapter 11 cases were filed in 2013 alone—but that hasn’t made them any less confusing or distressing for employees of companies who have filed for bankruptcy protection. Fears about job security, unpaid wages, or pensions can make the period after a bankruptcy filing an extremely stressful time for employees at all levels of a company, and even employers themselves don’t always have the answers about what the future might hold.
The company intends to continue operating
Your company may be subject to the WARN Act.
Some of your unpaid wages may have priority status.
If you continue to be employed by your company even after the bankruptcy filing, your wage payments should continue as usual; typically, the company will seek permission from the bankruptcy court to keep paying its employees as long as the company remains in business.