Also known as: earned incomes · wages · salary income
Written by attorneys · grounded in primary & secondary sources — see below
Income derived from personal labor or services rather than from investments or other passive sources.
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Ethan Evans worked as an assembly line employee at Elite Dynamics and signed an agreement directing a fixed portion of each upcoming paycheck to a lender until a personal loan was repaid. The arrangement transferred rights to compensation earned through his labor. Because the transfer involved employee compensation, it remained outside the coverage of secured transactions rules.
Paula worked extended shifts as a nurse at a state hospital under a defective scheduling system that failed to record overtime hours. She sought back pay for the additional compensation she had earned through her services. The claim turned on whether sovereign immunity barred recovery of those amounts in federal court.
Earned income consists of wages or net earnings from self-employment obtained through personal labor. Unearned income includes dividends, interest, and gifts that do not require active participation.
An assignment of wages or other compensation of an employee falls outside Article 9. The exclusion prevents ordinary wage claims from being subjected to the statute's filing and priority rules.
A child's earned income from after-school work is considered a financial resource of the child. Courts weigh it as one factor when determining the amount of parental support but do not treat it as a complete substitute for parental obligations.
…the private 93 sectors of the labor market. Federal rules outlawing discrimination in the workplace, like the regulation of wages and hours or health and safety standards, may be enforced against public as well as private employers. In my opinion, Congress' power to authorize federal remedies against state agencies…