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[Music] lets take a look at bankruptcy and employee rights from an employment law perspective financially struggling companies often file for bankruptcy and are likely to away jiz to their employees and have obligations under benefit programs or labor agreements employees are not considered secured creditors however some employers file for bankruptcy under Chapter 11 and to continue to operate as they reorganize the wages and benefits earned following the bankruptcy filing have a high priority claim and the companys resources these payments are treated as administrative expenses necessary to maintain the viability of the enterprise employees have a weaker claim for wages and benefits earned prior to petitions for bankruptcy these claims have lower priority and are limited to amounts earn within 90 days before the filing of the bankruptcy petition non-union employers are generally free to cancel expected raises or bonuses cut wages or reduce benefits as a means of lowering costs emplo
