If my employer is currently under Chapter 11 but will close next month and I have over 500 hours paid time off, will I lose these benefits or will the company be required to pay me for the unused hours?
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If my employer is currently under Chapter 11 but will close next month and I have over 500 hours paid time off, will I lose these benefits or will the company be required to pay me for the unused hours?
Asked on November 9, 2015 under Employment Labor Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
First, generally, there is no obligation to pay employees for unused time unless there was a contract (a written one) requring this. Without a written contract, they don't have to pay you for unused time. There are some exceptions, based on the exact facts and how the paid time off is characterized, but those are the exceptions: the norm is to not pay.
Second, any obligations to pay time off are subject to the bankruptcy plan, which may reduce or eliminate this obligation, as it can reduce or eliminate many obligations.
Third, if they close, who will you get the money from? If the business goes out of business, it will stop paying its debts.
Therefore, it is very unlikely you will see this money.
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