N.Y. Debtor & Creditor Law § 22: Wages and commissions and preferred claims

§ 22. Wages and commissions and preferred claims. 1. In all

distribution of assets under all assignments made in pursuance of this

article, the wages or salaries actually owing to the employees of the

assignor or assignors at the time of the execution of the assignment for

services rendered within three months prior to the execution of the

assignment, not exceeding one thousand dollars to each employee, and

after payment of the foregoing, all claims for cash deposits not

exceeding three hundred dollars made and left with an assignor or

assignors on account of purchases at retail of merchandise or services,

where such deposits were made within six months before the execution of

the assignment and such merchandise has not been delivered or the

services performed, shall be preferred before any other debt except

wages or salaries as aforesaid; and should the assets of the assignor or

assignors not be sufficient to pay in full all the claims preferred,

pursuant to this section, they shall be applied to the payment first of

wages or salaries to the full amount of each such wage or salary, and

thereafter pro rata to payment of such cash deposits.

2. For the purposes of this section, wages or salaries shall mean; (a)

all compensation and benefits payable by an employer to or for the

account of the employee for personal services rendered by such employee.

These shall specifically include but not be limited to salaries,

overtime, vacation, holiday and severance pay; employer contributions to

or payments of insurance or welfare benefits; employer contributions to

pension or annuity funds; and any other moneys properly due or payable

for services rendered by such employee. Vacation and severance pay due

and owing at the time of the filing of an assignment, or which became

due and owing after the filing of an assignment, but prior to the

closing of the estate, shall be considered as wages or salaries owed for

services rendered within three months prior to the execution of the

assignment, or (b) commissions due traveling or city salesmen on

salaries or commission basis, whole or part-time, whether or not selling

exclusively for the assignor or assignors, and for the purpose of this

section, traveling or city salesmen, shall include all such salesmen

whether or not they are independent contractors selling products or

services of the bankrupt with or without a drawing account or formal

contract.