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So, i get 3.5 weeks of vacation, (not including the 10 fed holidays), and the hrs add up quickly, especially given flex time. I always have at least 240 hrs (max allowed to carry over) in my reserve, just in case. Also, when you leave, at our company, the policy is that you'd get all of your hours paid out to you.
My question is the following:
Can a company legally refuse to pay out the balance, if they hit financial troubles?
I think if they go into bankruptcy, the answer is a clear 'yes, they don't have to pay you', but is bankruptcy the only instance where the employee might risk not getting paid? (ps. assume that the policy IS to pay out the vacation balance)
So, i get 3.5 weeks of vacation, (not including the 10 fed holidays), and the hrs add up quickly, especially given flex time. I always have at least 240 hrs (max allowed to carry over) in my reserve, just in case. Also, when you leave, at our company, the policy is that you'd get all of your hours paid out to you.
My question is the following:
Can a company legally refuse to pay out the balance, if they hit financial troubles?
I think if they go into bankruptcy, the answer is a clear 'yes, they don't have to pay you', but is bankruptcy the only instance where the employee might risk not getting paid? (ps. assume that the policy IS to pay out the vacation balance)
DON'T CARRY SO MANY HOURS 'IN THE BANK'!!! Policies can change.
Your state may be able to collect under the principle of agreed rate of of pay. Remember this is in large part a contractual issue and your employee handbook may say that its provisions can be changed at any time.
The bigger issue is that you seemed to be concerned about your employer's ability to pay your accumulated time. In that case now is the time to look for a new employer and plan an exit.
DON'T CARRY SO MANY HOURS 'IN THE BANK'!!! Policies can change.
Your state may be able to collect under the principle of agreed rate of of pay. Remember this is in large part a contractual issue and your employee handbook may say that its provisions can be changed at any time.
The bigger issue is that you seemed to be concerned about your employer's ability to pay your accumulated time. In that case now is the time to look for a new employer and plan an exit.
According to some quick research, vacation pay owed to employees takes 4th Priority in Chapter 11 bankruptcy filings. It is grouped under employee wages which means it's fairly high on the list of priorities but still doesn't guarantee you'll be paid. I am not a lawyer though so I can't guarantee accuracy. Regardless, it's probably best you remain cautious.
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They could change the policy at any time. They could, for example, say that you have to use them all before the end of your time there rather than paying you out. When you hold over vacation time, the rate of pay when they pay it out could be far more than what it was when earned. For example, you hold over 80 hours at $30/hour in 2016, but get paid at your higher pay with raises at $37/hour when you leave in 2018.
I have direct experience with this. I was asked to analyze the cost of accrued vacation and the amount of hours that employees were carrying over as part of a financing deal for a large company. When the execs reviewed the data, a decision was made to immediately change the policy to reduce the number of hours that an employee would be paid if their employment ended. So employees could carry large balances, but the company would only payout up to a much smaller maximum. It was a policy designed for people just like the OP.
I have direct experience with this. I was asked to analyze the cost of accrued vacation and the amount of hours that employees were carrying over as part of a financing deal for a large company. When the execs reviewed the data, a decision was made to immediately change the policy to reduce the number of hours that an employee would be paid if their employment ended. So employees could carry large balances, but the company would only payout up to a much smaller maximum. It was a policy designed for people just like the OP.
Damn. that sucks (for people like the OP. ie me. )
Did the new policy go into effect immediately or was a period provided to the employees as notice of the new policy? (if no notice, i could see a potential for litigation.....i could be wrong though)
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