Can a company whose employees have accumulated a certain amount of vacation hours suddenly abolish these benefits when a new owner steps in?

UPDATED: Dec 29, 2011

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Can a company whose employees have accumulated a certain amount of vacation hours suddenly abolish these benefits when a new owner steps in?

I work at a nursing home which has 6 or 7 other sister facilities. Last week it was announced that all of our accrued vacation time will be diminished to zero and will be paid out only in half. The managers are loosing 75% of their vacation time. It is my understanding that the employees at the other sister facilities have lost all their vacation time. Is this legal?

Asked on December 29, 2011 under Employment Labor Law, New York


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In a situation where there is vested vacation hours for an employee at work, the employee is entitled to all of the vacation hours as pay if time is not taken or the actual vacation hours even if the new employer decides to end the policy of giving vacation time to the employees.

It is fine for a new employer to end vacation accumulation as a benefit for work, but written notice has to be provided the employees and all accrued vacation time must be provided with no discount. Either the employee gets the vacation time or he or she gets full payment for the vacation time that is earned.

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