If I worked at a job for 10 years and the company shuts down without giving notice or monies owed for vacation, can I sue?

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If I worked at a job for 10 years and the company shuts down without giving notice or monies owed for vacation, can I sue?

Asked on January 3, 2012 under Employment Labor Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

As a general matter, a company does NOT need to provide notice of shutting down, except to the extent it may be covered by the WARN Act: only employers with over 100 employees are covered, and they must provide notice only if the location(s) being closed have 50 or more employees. (For these purposes, only count full time staff.) Unless covered by the WARN Act or a union contract, no notice is required. (If covered by WARN Act, 60 days notice is owed.)

As for vacation days: while the law varies by state, the most common rule is that if the employer would have paid out the days when an employee resigned or was fired, it must pay them out on a closure or mass layoff, but not otherwise. If you would be entitled to the days, you could try suing; but if the business was an LLC or corporation and has been shut down, there may be no assets or income to recover the money from.


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