Justia Bankruptcy Opinion Summaries

Articles Posted in Washington Supreme Court
The United States District Court for the Western District of Washington certified two questions to the Washington Supreme Court about the application of RCW 49.52.050, the wage rebate act (WRA), in circumstances of chapter 7 bankruptcy: (1) whether an officer, vice principal, or agent of an employer liable for a deprivation of wages under RCW 49.52.050 when his or her employment with the employer (and his or her ability to control the payment decision) was terminated before the wages became due and owing; and (2) whether an officer, vice principal, or agent's participation in the decision to file the Chapter 7 bankruptcy petition that effectively terminated his or her employment and ability to control payment decisions alter the analysis. The Washington Supreme Court answered both questions in the affirmative: (1) officers, vice principals, or agents may be held personally liable under the WRA, even if the payday date for those wages came after the employer filed for chapter 7 bankruptcy; and (2) an officer's participation in the decision to file the chapter 7 bankruptcy petition tends to show a willful withholding of wages-the second element required by the WRA. View "Allen v. Dameron" on Justia Law