CHAPTER 10. EMPLOYEES AS PREFERRED CREDITORS

IC 22-2-10
    Chapter 10. Employees as Preferred Creditors

IC 22-2-10-1
Assignments for benefit of creditors; bankruptcy; salesmen
    Sec. 1. Hereafter, when the property of any company, corporation,limited liability company, firm or person, engaged in anymanufacturing, mechanical, agricultural or other business oremployment, or in the construction of any work or building, shall beseized upon any mesne or final process of any court of the state, orwhere their business shall be suspended by the action of creditors orput into the hands of any assignee, receiver, or trustee, then in allsuch cases the debts owing to laborers or employees, which haveaccrued by reason of their labor or employment to an amount notexceeding six hundred dollars ($600) to each employee, for work andlabor performed within three (3) months next preceding the seizureof such property, shall be considered and treated as preferred debtsand such laborers or employees shall be preferred creditors and shallbe first paid in full, and if there be not sufficient to pay them in fullthen the same shall be paid to them pro rata, after paying costs;however, the term employees as used in this section shall includetraveling salesmen, traveling agents and manufacturers' agents,whether they are employed under monthly or yearly contracts orotherwise.
(Formerly: Acts 1879(ss), c.62, s.1; Acts 1885(ss), c.3, s.1; Acts1917, c.109, s.1; Acts 1967, c.104, s.1.) As amended by P.L.8-1993,SEC.277.