Can a company take accured Sick time away

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a company take accured Sick time away

My husband had over 200 hours sick time in state of KY at his job. The company was sold – starting the new year, they told him he would lose all his sick time and not be paid out for his accruals and no sick time for anyone going forward with benefits. I find it difficult that he accrued all that over 25 years and they just take it away without paying him out. Is that legal

Asked on April 11, 2016 under Employment Labor Law, Ohio


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

The critical issue is how was the company sold. 
1) If the company had been an LLC or a corporation and the actual LLC or corporation was purchased, then your husband should still have his sick leave and could take legal action, if necessary, to preserve it. In this case, he is still working for the same legal entity, and that entity may not deprive him of leave which he worked for and earned without either giving him the abiity to use it or payig it for him.
2) But if the company was not an LLC or corporation, or it was, the LLC or corporation was not purchased, but rather, the buyer only purchased the "assets" (which includes thinks like the name, the intellectual property, the "good will," inventory, equipment, accounts receivable, etc.) then your husband is not workning for the same entity: he's actually working for a new employer/company which simply happens to have the assets of the old one. In this case, the new entity is not required to honor the sick leave granted by the old company (just as any new employer is not obligated to honor leave from an old employer), and your husband would lose his accumulated leave.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption