Wisconsin Workers Deserve Wages Earned when a Business Files for Bankruptcy

 

Madison - It seems whenever Republicans have control of the Legislature, they aim to further tilt the playing field against Wisconsin’s workers. This isn’t a new phenomenon, either.

 

Under a state law passed in 1975, wage claims filed by employees took precedence over all other debts and obligations owed by an employer; this was especially important when an employer filed for bankruptcy. It meant that wages owed to workers for hours worked were the first priority.

 

That radically changed in 2003, under a Republican-led Senate and Assembly. 2003 Assembly Bill 2 was originally a bipartisan bill, which I co-sponsored, that would allow more people to enroll in credit unions. It had already passed the Assembly when, on the Senate floor, the Republican majority amended the bill to add a provision placing employee wage claims behind banks, insurance companies and various other types of financial institutions in terms of priority of obligations. In essence, this meant that if an employer filed for bankruptcy, workers were highly unlikely to receive the wages they had worked hard for, as there was rarely money left over after the other obligations were settled. I immediately removed my name from the bill and objected to its passage but was outvoted by the Republican majority.

 

I think it’s time that we once again make workers the first priority. A sad reality of the current coronavirus pandemic is that some businesses will be forced to file for bankruptcy; their employees shouldn’t go without pay for work completed, through no fault of their own. I am announcing my intention to author legislation to once again make employee wage claims first priority when the new session begins in January 2021, and I also believe this should be part of the discussion during any special session that the Legislature takes up to address COVID-19.

 

Righting the wrong that was added to that bill in 2003 would be one big step in restoring fairness to workers’ rights.