Vacation Pay out after company acquistion

UPDATED: Oct 1, 2022

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Vacation Pay out after company acquistion

I’m attempting to understand where my legal stance is with vacation pay when the company refuses to pay out the PTO accrued post-acquisition and PTO cap. I had worked for a company for 7 years before they sold it to a larger company of which there was no discussion about vacation pay or anything changing. So when I was absorbed into the new company’s workforce, nothing was expected to change for now. So another 4 years down the line and they post out an email noted that they are capping the PTO at X number of days which is fine. However, they refused to pay any PTO that was over the X day cap. for me and I had over 3 weeks of PTO from the prior company and was

Asked on September 25, 2018 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) In the CA case of Church vs. Jamison, your state's courts said that you can't bring a claim for payment of vacation until the end or termination of your employment, when you should be paid for accrued but unused days. Since your employment has not ended, you cannot bring a legal case or claim.
2) An employer may cap vacation. It cannot take away already-earned or accrued days, but may state you cannot accrue more than X days, so if you are already over that limit, you do not accrue more days until you use sufficient to go under the limit.
When your termination ends, you need to be paid for what accrued but unused days you are still carrying.

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.

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