If my employer is going out of business, are we entitled to our earned but unused vacation time?

My place of employment is going out of business leaving the employees with little time to find where to go next. There is no bankruptcy or large sums of debt. More than one of us has multiple weeks of vacation time with no time to use it in. Our employers have made it clear they do not have any intentions of paying us this sum. I was wondering if this is legal?

Asked on January 23, 2018 under Employment Labor Law, Nebraska

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

In some states workers must be paid for their earned but unused vacation or PTO upon departure; in others they do not. Under NE law, an employer is required to pay an employee for their earned but unused PTO/vacation, upon separation. This is true even if there the employee manual provides otherwise.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

In some states workers must be paid for their earned but unused vacation or PTO upon departure; in others they do not. Under NE law, an employer is required to pay an employee for their earned but unused PTO/vacation, upon separation. This is true even if there the employee manual provides otherwise.


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