N.Y. LAB Law § 574

§ 574. Insolvency or bankruptcy. 1. Priority of contributions. In the\nevent of the dissolution, insolvency, composition, or assignment for\nbenefit of creditors of any employer, contributions then and thereafter\ndue from such employer under this article, together with any interest\nand penalties thereon, shall (1) be on a parity with taxes (other than\nreal property taxes), together with any interest and penalties thereon,\ndue the state of New York or any city thereof and (2) have priority over\nall other claims, except taxes due the United States and wages due for\nemployment performed within the three months preceding such event. In\nthe event of an employer's adjudication in bankruptcy, judicially\nconfirmed extension proposal, composition, or reorganization under the\nfederal bankruptcy act, contributions then and thereafter due under this\narticle, together with any interest and penalties thereon, shall be\nentitled to such priority as is provided in such act.\n 2. Discharge in bankruptcy. If the commissioner was given due notice\nor had knowledge of the bankruptcy proceedings, the payment of\ncontributions due, together with interest and penalties thereon, which\naccrued on or before the date of the petition for bankruptcy and which\nremain unpaid upon the discharge of the employer in bankruptcy by a\ncourt of competent jurisdiction, shall not be enforced unless civil\naction or warrant proceedings are begun not later than two years after\nthe date of such discharge and their total amount is two thousand\ndollars or more.\n