If I sold my business and an employee had accrued some vacation time, am I legally obligated to pay her for that time?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I sold my business and an employee had accrued some vacation time, am I legally obligated to pay her for that time?
I, of course, encouraged her to take time off before the acquisition but she did not. I had my company’s PTO policy set so that it did not carry over to the next year if it was not used.
Asked on February 25, 2015 under Employment Labor Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
No, there would be no obligation unless there was some written employment agreement stating that in the event of the termination of employment, employees would be paid out for unused vacation, and her employment terminated as a result of the sale. And even in that case, if the business had been an LLC or corporation, you personally would not be liable for the payout.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.