34-26-1. Extent and condition of preference.
If any property of any person is seized through any process of any court, or when his
business is suspended by the act of creditors or is put into the hands of a receiver, assignee, or
trustee, either by voluntary or involuntary action, the amount owing to workmen, clerks, traveling
or city salesmen, or servants, for work or labor performed within five months next preceding the
seizure or transfer of the property shall be considered and treated as preferred debts, and the
workmen, clerks, traveling and city salesmen, and servants shall be preferred creditors, the first to
be paid in full. If there are not sufficient proceeds to pay them in full, then the proceeds shall be
paid to them pro rata, after paying costs. No officer, director, or general manager of a
corporation employer or any member of an association employer or partner of a partnership
employer is entitled to this preference.
Amended by Chapter 206, 1987 General Session
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Last revised: Thursday, May 28, 2009