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The Fruits of Labor: Worker Priorities in Bankruptcy

Abstract

Professor Keating's Article is the first to explore comprehensively the numerous issues that arise when workers assert their unique rights as claimants in the bankruptcy of their employer. Whenever Congress creates special rights for certain parties outside of bankruptcy, the nature and priority of those rights will invariably have to be translated into the bankruptcy forum. The labor arena is one field in which there are a number of statutorily created rights that workers enjoy outside of bankruptcy.

Professor Keating examines the Bankruptcy Code-created priorities for workers' wages and benefits, and considers the troublesome questions that arise when workers attempt to leapfrog past other creditors by exerting their inherent leverage as employees of the business. After exploring two major sources of nonbankruptcy priorities enjoyed by workers, the Fair Labor Standards Act and the Worker Adjustment Retraining and Notification Act, Professor Keating concludes by questioning whether the benefits created by the worker priorities are indeed worth the litigation and uncertainty that such priorities have often created.

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35 Ariz. L. Rev. 905 (1993)

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Authors

Daniel Keating (Washington University)

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