ABSTRACT
In addition to procedural and substantive challenges that employees face during bankruptcy reorganisation proceedings under Chapter 11 of the US Code, there are other challenges that employees face during reorganisation proceedings involving their employer. This chapter examines the impact of the federal-state law division under the US system of government and its impact on the treatment of employee interests during bankruptcy reorganisations. The diffusion of power between state and federal jurisdictions that dictates the way stakeholder interests, such as those of employees are handled during bankruptcy reorganisations in the US is analysed. The supremacy of federal law over state law provides an analytical lens through which social and economic policy issues that affect the debtor-creditor relationships during bankruptcy reorganisations are analysed. In addition, the impact of bankruptcy venue forum shopping and how this impedes employee involvement or/participation in the bankruptcy reorganisation proceedings of their employer is analysed.
