Whenever a receiver shall be appointed to manage or close up any business, the receiver shall immediately report to the court the amount due the employees in such business; and said court shall order the receiver to pay out of the first receipts of said business, after the payment of costs, debts due the United States or this state, taxes and assessments and the current expenses of carrying on or closing said business, the wages, including pension, welfare and vacation benefits, of such employees earned during the last 3 months of employment and within one year prior to the receiver’s appointment.
813.17.Receiver; payment of employees’ wages.
Ch. 813: Injunctions, Ne Exeat and Receivers · Last amended 1993 · Last verified July 15, 2026
In one sentenceSection 813.17 requires a receiver managing or closing a business to report the wages owed to its employees, and directs the court to order those wages, including pension, welfare, and vacation benefits earned in the last three months of employment, paid from the business’s first receipts after certain priority costs.
Full Text of Section 813.17
Plain-English Summary
When a receiver takes over a business, its employees can be left waiting on paychecks. Section 813.17 requires the receiver to report to the court, immediately, the amount due the employees of the business being managed or closed.
The court then orders that amount paid out of the business’s first receipts, after paying costs, debts owed to the United States or Wisconsin, taxes and assessments, and the current expenses of running or closing the business. The wages covered include pension, welfare, and vacation benefits, but only those earned during the employee’s last three months of employment and within one year before the receiver’s appointment.
Frequently Asked Questions
What must a receiver do about unpaid employee wages when taking over a business?
Section 813.17 requires the receiver to report to the court, immediately, the amount due the business’s employees.
Which wages get priority payment once the report is made?
Wages, including pension, welfare, and vacation benefits, earned during the employees’ last three months of employment and within one year before the receiver’s appointment.
Do employee benefits like pension and vacation pay count toward this priority?
Yes. Section 813.17 expressly includes pension, welfare, and vacation benefits along with wages.
What gets paid before the employees under this section?
Costs, debts due the United States or Wisconsin, taxes and assessments, and the current expenses of carrying on or closing the business are paid first, with employee wages coming out of the first receipts after that.
Does this section apply to any receiver, or only one closing a business?
It applies whenever a receiver is appointed to manage or close up a business, covering both an ongoing operation and a wind-down.
Amendment History
History: 1971 c. 63; Sup. Ct. Order, 67 Wis. 2d 585, 760 (1975); Stats. 1975 s. 813.17; 1993 a. 486.
Source & verification. Section text and official notes are
reproduced verbatim from the Wisconsin Statutes, published by the
Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026.
· Official source
Also known as: receiver unpaid wages wisconsinemployee wage priority receivership wisconsinwisconsin business receiver employee payreceiver wage report wisconsin