The Bankruptcy Code’s Automatic Stay Is Not So Automatic for DOL Wage and Hour FLSA Enforcement Actions

The U.S. Bankruptcy Code (the “Code”) § 11 U.S.C. § 362(a)(1) provides that when a party files for bankruptcy, an automatic stay is triggered. However, it turns out that there are limitations to the type of cases that these automatic stays extends, and in the employment context, this may not necessarily include wage and hour …