17-6910. Employee's lien for wages when corporation insolvent. Whenever any corporation of this state, or any foreign corporation doing business in this state, shall become insolvent, the employees doing labor or service of whatever character in the regular employ of the corporation, shall have a lien upon the assets thereof for the amount of the wages due to them, not exceeding two months' wages, respectively, which shall be paid prior to any other debt or debts of the corporation. The word "employee" as used in this section shall not be construed to include any of the officers of the corporation.
History: L. 1972, ch. 52, § 113; L. 2004, ch. 143, § 71; L. 2016, ch. 110, § 98; July 1.
Source or Prior Law:
8 Del. C. § 300.
Cross References to Related Sections:
Officers of corporation, see 17-6302.
Claims of creditors, see 17-6905, 17-6906.
Law Review and Bar Journal References:
"The Kansas Corporation Code of 1972," William E. Treadway, 40 J.B.A.K. 301, 347 (1971).
CASE ANNOTATIONS
1. Although plain language of statute gives employees a lien on a corporation's assets for due wages, it does not provide that the lien is prioritized over existing liens on those assets. Bank Midwest v. R.F. Fisher Elec. Co., LLC, 514 F. Supp. 3d 1310, 1317 (D. Kan. 2021).
2. Majority shareholder in a company cannot be found liable for unjust enrichment when there is no evidence to show that the shareholder gained an individual benefit through corporate dealings. EST Inc. v. Royal-Grow Prods., LLC, 526 F. Supp. 3d 943 (D. Kan. 2021).
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