Introduced Version






HOUSE BILL No. 1481

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 22-2-10-1 .

Synopsis: Employee unpaid wage claims. Increases from $600 to $2,000 the maximum amount an employee may claim as unpaid compensation against an employer that goes out of business or files bankruptcy. Establishes: (1) an employee's claim for unpaid compensation as a secured interest; and (2) the employee as a secured creditor.

Effective: July 1, 2003.





Pflum, Liggett




    January 15, 2003, read first time and referred to Committee on Labor and Employment.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1481



    A BILL FOR AN ACT to amend the Indiana Code concerning labor and industrial safety.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 22-2-10-1; (03)IN1481.1.1. -->     SECTION 1. IC 22-2-10-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. Hereafter, When the property of any company, corporation, limited liability company, firm, or person, engaged in any manufacturing, mechanical, agricultural, or other business or employment, or in the construction of any work or building, shall be seized upon any mesne or final process of any court of the state, or where their business shall be suspended by the action of creditors or put into the hands of any assignee, receiver, or trustee, then in all such cases the debts owing to laborers or employees which have accrued by reason of their labor or employment to shall have a claim for an amount not exceeding six hundred two thousand dollars ($600) to each ($2,000) per employee for work and labor performed within three (3) months next preceding before the seizure of such property. This claim shall be considered and treated as preferred debts a secured interest, and such the laborers or employees having a claim for unpaid compensation shall be preferred secured creditors and

shall be first paid in full, and if there be not sufficient to pay them in full then the same shall be paid to them pro rata, after paying costs; however, the term employees as used in this section shall include traveling salesmen, traveling agents, and manufacturers' agents, whether they are employed under monthly or yearly contracts or otherwise.

SOURCE: ; (03)IN1481.1.2. -->     SECTION 2. [EFFECTIVE JULY 1, 2003] IC 22-2-10-1 , as amended by this act, applies to compensation first payable after June 30, 2003.