If the practice I work for was recently sold from one physician to another; does the new physician have to honor my accrued PTO?

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If the practice I work for was recently sold from one physician to another; does the new physician have to honor my accrued PTO?

The old physician was a P.C. and the new doctor uses his name followed by “P.A.”. I have accrued nearly 100 hours of PTO and have been told by the new doctor that the old one was responsible for paying me for them before he left. The practice name remained the same; the old physician has since told me in the purchasing contract, it was stated that the purchaser was to assume “all financial responsibility” after buying. Can the new owner just dissolve/remove all of my PTO?

Asked on June 22, 2015 under Employment Labor Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

From what you write, you are now working for a new employer: the "new doctor . . . name followed by 'P.A.'" and not the "old physician . . . P.C." The new doctor may have bought the assets (e.g. patient list; equipment; etc.) of the old, and may be employing the same people, but legally, he is a different employer and is not obligated to honor or pay out the accrued PTO provided by the old employer. It is *possible* but the contract of sale requires the new doctor to honor the PTO, but that is unlikely--generally assuming financial responsibility refers to vendor and service provider contracts, rent, etc. If you can get a copy of the contract and show it to a lawyer, that lawyer can read the exact language and answer the question as to whether the new doctor may be obligated to honor the PTO.


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