Department of Labor in Indiana?
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Department of Labor in Indiana?
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By law if a company closes their doors and you have vacation remaining does the company have to pay you for the remaining time that is left?
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Shane
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No. Indiana has no laws requiring a former employer to pay out any vacation, sick, personal leave time in the event the operations close or the employee is fired or resigns. |
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michr
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if they close you are in the same position as any other creditor and being owed and receiving payment are two different things. by law in Indiana accrued vacation is "earned" wages and must be paid at separation. now getting a bankrupt employer to pay this is the issue you must resolve.
this is from the Indiana Department of Labor:
When I leave my employment, is my former employer required to pay me for any accrued vacation time?
Yes. Accrued vacation pay is considered a form of compensation. Upon leaving employment, vacation pay is additional wages, earned weekly, where only the time of payment is deferred. As a result, an employee is entitled to a pro rata share of his/her accrued vacation at the time of termination.
However, if there is a company personnel policy or employment contract which states certain conditions under which accrued vacation pay will be given upon termination, the employee must meet those conditions in order to receive their accrued vacation pay. These policies are at the discretion of the employer, but must be presented to the employee in writing prior to the ending of employment.
http://www.in.gov/dol/2345.htm |
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