More Than a Local Speed Bump - Wisconsin's Wage Lien Law Points to Change
The Wisconsin Bankers Association reports on a Wisconsin bill that could foretell things to come, if the "new" economy continues to slide: laws that protect the wage claims of workers at the expense of existing liens held by others.
Briefly, this Wisconsin statute recognizes the rights of employees (subject to certain exceptions excluded by the statute) to enforce a wage claim lien as a "super priority" lien even against pre-existing liens. Currently, there is a $3,000 per employee cap amount. However, legislation has been introduced in Wisconsin to remove the cap.
Why should you care (unless you're hibernating in the frozen tundra of Wisconsin)?
- It points to the importance of knowing the local law. When you exercise remedies, your first move should be to hire qualified, experienced local legal counsel who know the bumps in the local road – and who stay current on the most recent changes and trends.
- Expect pro-borrower changes to the law. Look for it. The prediction here is that we're going to see more and more of these types of pro-borrower laws in the near future – most certainly as the public becomes frustrated with the economy, the role lenders played in the financial melt down, the public "investment" in banks, _________ (you can fill in the blank). So, be on alert for changes to the default and foreclosure process.
Indeed, even in the State of Texas, a bastion of caveat emptor and "free" markets, we're seeing pro-borrower changes. Last fall, the Texas Attorney General proposed consumer-friendly changes to residential foreclosure laws – including requiring lenders to give longer cure periods, to contact the consumer by phone or in person (as a condition to starting the foreclosure process), and a time period to vacate the residence after foreclosure.
This is just one way that this real estate down turn will be different. Change is coming.
This will be a different tough time.
Please give us your comments, questions, predictions or incite to changes in your state.
