Wage Liens
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Statutes
"1m. A lien under par. (a) takes precedence over all other debts, judgments, decrees, liens, or mortgages against the employer, except a lien of a commercial lending institution as provided in subd. 2. and 3. or a lien under s. 292.31 (8) (i) or 292.81, regardless of whether those other debts, judgments, decrees, liens, or mortgages originate before or after the lien under par. (a) takes effect. A lien under par. (a) may be enforced in the manner provided in ss. 779.09 to 779.12, 779.20, and 779.21, insofar as those provisions are applicable. The lien ceases to exist if the department of workforce development or the employee does not bring an action to enforce the lien within the period prescribed in s. 893.44 for the underlying wage claim.
2. Except as provided in this subdivision, a lien under par. (a) does not take precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect. Subject to subd. 3., a lien under par. (a) takes precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect only as to the first $3,000 of unpaid wages covered under the lien that are earned by an employee within the 6 months preceding the date on which the employee files the wage claim under sub. (1) or brings the action under s. 109.03 (5) or the date on which the department receives the wage claim under s. 109.10 (4) (a), whichever is applicable. (109.09(2)(c)1m.)"
2. Except as provided in this subdivision, a lien under par. (a) does not take precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect. Subject to subd. 3., a lien under par. (a) takes precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect only as to the first $3,000 of unpaid wages covered under the lien that are earned by an employee within the 6 months preceding the date on which the employee files the wage claim under sub. (1) or brings the action under s. 109.03 (5) or the date on which the department receives the wage claim under s. 109.10 (4) (a), whichever is applicable. (109.09(2)(c)1m.)"
Cases
Comments
In the event a wage lien claim is filed subsequent to a petition for bankruptcy by the debtor-employer, the automatic stay prevents it from becoming effective because any act to perfect, create or enforce any lien against an estate after a petition for bankruptcy has been filed is stayed. 11 U.S.C. ยง 362(a)(4); In re Napco Graphic Arts Inc., Wisconsin Department of Industry, Labor and Human Relations v. Ludwig, 83 B.R. 558, 561-562 (E.D.Wis. 1988); Peltz v. Wisconsin Department of Workforce Development, 283 B.R. 259, 262-265 (E.D.Wis. 2002).
Contributors
Roy L. Prange, Elizabeth A. Orelup, Katherine M. Perhach
The statutory information was edited and reviewed with the support of MultiState
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