QUESTION
If my company files for bankruptcy, do they have to pay the vacation I have earned?
Asked on Dec 14th, 2016 on Bankruptcy - California
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Companies go into bankruptcy because they can't pay all their debts. Vacation pay is one of those debts. You should consult an attorney to determine whether the company is required to pay your vacation pay.
Answered on Feb 10th, 2017 at 5:34 AM
It depends on WHEN the vacation income was earned and what form of bankruptcy your employer filed. As a general rule, wages and vacation pay would be considered as a priority debt only if earned within 180 days before the bankruptcy case was filed.
Answered on Feb 09th, 2017 at 12:35 PM