32.0343 Preference of claim for wages when business is suspended for financial reasons.

Cite as [A.S.C.A. § 32.0343]

(a) When the business of any person, corporation, company or firm is suspended as a result of a writ of execution or attachment or is placed in the hands of a receiver, trustee or assignee or creditors, then all cases of claims for wages at not more than $300 for each claimant, earned within 6 months of the date such business is suspended or placed in the hands at a receiver, trustee or assignee for creditors, must be paid in full prior to the payment of taxes or any other debts except a debt secured by a mortgage duly recorded before the wages were earned.

(b) Any employee desiring to enforce his claim for wages shall present a statement under oath showing the amount due, the kind of work for which such wages are due, and when such work was performed, to the officer or person charged with such property, within 20 days after seizure of the property under any execution or writ of attachment or within 60 days after such property has been placed in the hands of a receiver, trustee, or assignee for creditors.

(c) Any interested party may contest any claim or part thereof by filing sworn exceptions thereto with the officer, or person to whom the claim was presented, within 10 days after the period for filing claims, and thereupon, the claimant is required to reduce his claim to judgment before any part thereof shall be paid.

(d) No claim may be paid until after the expiration of the time for filing and contesting claims.

(e) If the funds realized from the sale of the property are insufficient to pay the total claims for wages presented, then such funds must be prorated between such claims.

History: 1965, PL 9-23.