Does an employee's trust need to be subordinated?
MultiRegion, United States of America
The following excerpt is from Weis Securities, Inc., Matter of, 605 F.2d 590 (2nd Cir. 1978):
The district court held, 428 F.Supp. at 219, that the term "wages" in this context is limited to "money directly due (employees) in back wages", citing United States v. Embassy Restaurant, 359 U.S. 29, 32 (1959); and that a contract whereby an employees' trust loans money to an employer at higher than normal interest rates in consideration of subordination is not within the classic pattern of "back wages". We agree.
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