Employment Law Questions? Ask an Employment Lawyer.
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The answer depends on whether or not they reserve cash on hand for the employees. In most cases, the answer is no if the employer is going out of business. There are no statutory mandates for vacation time or severance pay, either at the state or federal level. These benefits are not contemplated by the law, and therefore are not mandated to be provided to employees, absent a contractual agreement between the employee and the employer.
In most cases, there is no severance or payment for vacation time paid to employees when a business shuts down, unfortunately. As such, if you are making preparations for that day, it would be wise to not calculate those figures into the equation. On a positive note, you will be eligible for unemployment coverage if the business shuts down. I know that is a small consolation, but it will be some income.
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