Am I entitled to accrued paid time off when a company closes?

UPDATED: Jan 2, 2011

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Am I entitled to accrued paid time off when a company closes?

I have been working at a job for over 3 years and they have decided to close the business at the end of this month. I have accrued over 3 weeks of paid time off and I am wondering if they legally have to pay me that money after they have closed. I am going on maternity leave at the end of this month and I have saved my time for this special time in my life. Also, am I able to draw unemployment if I am on maternity leave?

Asked on January 2, 2011 under Employment Labor Law, Ohio


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Like most states, OH does not have any laws requiring companies to provide vacation time at all. That means there is no law requiring its payment (of accrued by unused time) upon termination of employment (including when a company closes). Instead, the courts will enforce whatever policy the company has followed before, either a policy set out in writing or one determined from its actual practices. If your company has paid out vacation when people retired, resigned, were fired, etc., then acrued vacation is something they need to pay under any circumstances--including the company closing. Of course, if the company closes, it either may not have the money to pay the vacation or if it simploy chooses not to, it may be impractical or impossible to sue them and force them to do so.

If you are still being paid while on maternity--such as by using PTO--then you would not be eligible for unemployment.

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