What is a priority wage claim?

A priority wage claim is an issue that arises when employers fail to pay employees the wages they are owed. In Washington state, creditors rights law provides that wage claims be given priority over other debts owed to creditors. This means that if an employer goes into bankruptcy or is unable to pay its debts, wage claims by employees must be paid off first before other claims by creditors. Priority wage claims are an important protection for employees. Without these laws, employers might be inclined to not pay employees or make slow payments, leaving employees with little or no recourse. By giving priority to wage claims, Washington protects employees from this unfair situation. Priority wage claims also apply to other payments owed to employees, such as vacation pay, bonuses, and severance pay. By ensuring that these claims are given priority over other creditors, Washington is ensuring employees are paid what they deserve in the event of a bankruptcy or other financial crisis. Priority wage claims also provide some financial security to employers as well. By guaranteeing that wage claims are paid off first, employers know that their employees will be taken care of regardless of their financial situation. This security helps employers feel more secure about making such payments in the first place.

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What is a priority wage claim?

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