Question - about job loss

[ELLE-TN]

I have been surfing the internet most of the afternoon looking for the answer to this question....

In the case of a company closing down (completely), will employees be compensated for their accumulated sick & vacation days? I am hoping there is a law that requires a company to do so. If so, I would like to know where I can find such law so that I can read over and familiarize myself with it and keep it bookmarked for further use. If you know the answer I sure appreciate your help.

[melodyjg]

In my experience it is based on each individual company....Some will pay the Vacation, Sick with the last check like they did on my husband several years ago but I am hearing more and more about companies just up and closing and not even giving the employee's their last paycheck let alone the sick and vacation! One of the new car companies here was open one day and the next day the employee's came to work with padlocks on the doors....They were out their pay, vacation and sick! Whether there is a law I don't know but I think its happening both ways regardless. Sorry I cannot give you a definitive answer just wanted you to know my experience.

[ELLE-TN]

Thanks for your input Melody

[notsyourbeezwax]

I do not know if this is law in Virginia or not, but the last 2 companies I worked for stated in the employee manual that you would not be paid for unused vacation, etc if you worked for them less than 1 year.

When I was fired from a job a few years ago, my final check had my PTO time on it.

I know that neither of these situations actually applies to the situation that you asked about, but they are good guides. If the company is closing because they are bankrupt, I believe that employees are far down on the priority list for claims on the assets. But again, you need to know your state laws. The unemployment commission should be able to answer your questions.

HTH.

[ELLE-TN]

The company is not closing due to bankruptcy. It also states that they are not closing due to the recession. Basically, they are closing because it is the only plant besides another small one in VA (which they are closing also) that is still Union and they are getting rid of the Union.

[notsyourbeezwax]

Originally Posted by ELLE-TN The company is not closing due to bankruptcy. It also states that they are not closing due to the recession. Basically, they are closing because it is the only plant besides another small one in VA (which they are closing also) that is still Union and they are getting rid of the Union.

Have you talked to your shop steward about this? AFAIK, union contracts address this sort of issue, normally to the employee's benefit.

[ELLE-TN]

So far nobody is telling anybody anything. They want the employees to stay with them until the end so everything is being kept Hush Hush!

[BostonRed]

Vacation payouts are determined by two factors:

* State laws -- some states require companies to pay out vacation upon departure. Check with your state Dept. of Labor to be sure.

* Company policy -- if the employee handbook/benefit guide says these are payable on departure, then the company must pay them out


You may also want to get familiar with the WARN Act -- Fact Sheet - The Worker Adjustment and Retraining Notification Act -- it requires employers shutting down an operation to provide 60 days notice (or payment in lieu of notice). It doesn't apply to small employers, but it may apply in your case.

There may also be state laws that apply in your case. The state DOL is the best place to check.

[joshmamabear]

Originally Posted by notsyourbeezwax Have you talked to your shop steward about this? AFAIK, union contracts address this sort of issue, normally to the employee's benefit.

I agree. the union works for your protection.

since you have a union, they should address this issue with management asap if rumors are true that the company is closing.

[Mrs.Reese]

When I was laid off from my teaching position, I did get a check for all my personal and unused sick time.