Jonathan Noble Edel

Jonathan Noble Edel

December 06, 2019 | Law.com

Overview of Limitations on Employee Compensation in Bankruptcy

Recognizing the potential consequences, companies in Chapter 11 bankruptcy often try to reduce employee uncertainty by seeking authority from the bankruptcy court. The Bankruptcy Code, however, imposes a variety of limitations on the ability of a debtor-employer to provide certain types of compensation and benefits to "insiders," a term that is broadly defined in the Bankruptcy Code.

By Carl E. Black and Jonathan Noble Edel

16 minute read