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What impact does the filing of a bankruptcy by an employer have on a 132(a) worker's compensation discrimination claim?

San Diego, CA |

Hi. I am representing myself in a workers comp. against my former employer. I was terminated during the workers comp action. I then filed a 132(a) action for discrimination. The corporation is about to file bankruptcy. What affect does the filing of bankruptcy have only on the 132(a) claim?

There has been no award yet. The claim was just filed last month. Employer has his own insurance, but according to him the insurance company isn't going to cover my 132(a) claim and he is going to file for bankruptcy.

Attorney Answers 3


The filing of a bankruptcy places an automatic stay on all pending litigation. If the company files bankruptcy, you will be noticed. You will then have to file a motion for release from the stay in the appropriate bankruptcy court in order to proceed with your case.

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In order to continue to pursue the claim against your employer, you will either need to bring this claim through the bankruptcy or ask the bankruptcy court to order a "lift stay" of the bankruptcy to allow your case to proceed.

The debt owed to you may be discharged in the company's bankruptcy case, so check with a bankruptcy creditor's attorney before making any decisions on whether to proceed.

Hope this perspective helps!

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Has the 132a claim been ruled on by the Workers' Comp Board? If not, there is no award against your employer and nothing to collect.

If you have a 132a ruling did the judge attach it to a Workers' Comp settlement in total or did she issue a specific 132a finding and penalty amount. If it was incorporated in the Workers' Comp award, your employer's Workers' Comp insurance company must pay the award.

Only if there was a separate 132a award and/or your employer pays his own workers' comp claim, would the above answers apply to your situation.

This is a very complicated area of law. If you have a Workers' Comp attorney, he or she could help you. If not, I recommend contacting the Information and Assistance Office at the Workers' Comp Board (800-736-7401). They provide excell ent advice to unrepresented workers with a Workers' Comp claim.

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