§ 1205
87 words·~1 min read·
/ca/code-of-civil-procedure/1205A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Upon the sale or transfer of any business or the stock in trade, in bulk, or a substantial part thereof, not in the ordinary and regular course of business or trade, unpaid wages of employees of the seller or transferor earned within ninety
(90)days prior to the sale, transfer, or opening of an escrow for the sale thereof, shall constitute preferred claims and liens thereon as between creditors of the seller or transferor and must be paid first from the proceeds of the sale or transfer.