Once Hertz files Chapter 11, will they be required to continue to pay severance for those employees that received a layoff in April 2020?
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correct... US code below.
https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section507&num=0&edition=prelim
No it will then be a bankruptcy court decision on any spend at all.. Sadly for the employees, of firms that end up like this (Hertz) it's how it works... every penny of spending will now be up to the BK court. So those laid off prior to this that got severance is good... being employed but losing your job after bankruptcy filing... every creditor has more standing to get their money before you get any severance.