Not qualifying for payment from the Wage Earner Protection Program

In addition to establishing the Wage Earner Protection Program, the insolvency reform legislation enacted a new "limited super-priority" provision within the Bankruptcy and Insolvency Act (BIA) which puts unpaid wage claims ahead of secured creditors over the current assets of the bankrupt employer’s estate, up to a maximum of $2,000 per claim.

An individual who does not qualify for payment from the Wage Earner Protection Program may be able to pursue the wage claim through the limited super-priority and the existing preferred creditor status up to a $2,000 cap.

You are encouraged to contact the trustee or receiver appointed to your employer’s bankruptcy or receivership to obtain more information on pursuing a wage claim under the new limited super-priority provisions.