If I was due 5 weeks of vacation but my company sold, does the new company have to honor the vacation?

UPDATED: Oct 1, 2022

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If I was due 5 weeks of vacation but my company sold, does the new company have to honor the vacation?

I was to get 5 weeks vacation earned last year. Does the new company have to honor the vacation I had earned under the original owners?

Asked on January 9, 2019 under Employment Labor Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If your company was a LLC or corporation and the new owner bought the LLC or corporation, so that you are still working for the same entity (which entity in turn simply happens to be owned by a new person or other entity), then they have to honor your vaction. The vacation was an obligation of the LLC or corporation you worked for, so as long as you work for the same entity, it owes it to you.
But if the company was not an LLC or corporation (e.g. it was a sole proprietorship), or it was, the LLC or corporation itself was not bought (instead, the buyer bought everything it owned and hired its staff, but did not acquire the entity), then you are working for a new person or entity, and that person does not need to honor the vacation obligation or a different person or entity.

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