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Delta-Lawyer, Lawyer
Category: Employment Law
Satisfied Customers: 3546
Experience:  In-House Counsel & Litigator
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When my employer closes the doors will I still get my

Customer Question

When my employer closes the doors will I still get my severance and vacation pay?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Delta-Lawyer replied 1 year ago.

I hope this message finds you well, present circumstances excluded. I am a licensed attorney with over a dozen years of employment law practice experience. It is a pleasure to assist you today.

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.

Let me know if you have any other questions or concerns. Please also rate my answer positively (THREE OR MORE STARS) on the ratings bar on your end so I can receive credit from the site for my response.

Thank you and best wishes!