Acquisition - Vacation Pay Out

[sharook]

What is the name of your state? Texas

My company was recently purchased and we were informed that our vacation pay would be paid out to us. At the beginning of the year, we were originally given 120 Hours (3 Weeks) paid time off that never rolled over to the next year. Thus, if we needed 3 weeks off at the beginning of the year, we could take it. However, now that we have been acquired and the acquired company is paying vacation out, they are pro-rating the payout based on the date of the acquisition rather than giving us the complete payout. As far as I know, there is no employer agreement that was made available to the employees and no such policy is written in the employee handbook. I have searched the Labor Code for any statute that would support my position forcing my former employer to pay out the complete amount rather than the pro-rated amount. Any ideas? If someone states that the employer is not obligated to pay the full amount and can pay whatever they want, can you please provide a link or something else providing evidence of the statement.

Thank you

 

[cbg]

Neither Federal nor Texas law requires that vacation be paid out at all.

I can't provide you with a link to a law that does not exist. The law states what an employer must do, and what they must not do. It does not address what the employer may do.

In this case, there is no statute requiring that vacation be paid out. They may do so if they choose; they are neither required to nor prohibited from doing so. It is simply not addressed by law.

 

[pattytx]

And it is pretty uncommon for a vacation "grant" to be immediately vested. What the prior company was doing is allowing you to "go negative" while you were earning the vacation. Therefore, you would not be owed the entire 3 weeks, but the prorated portion, less any vacation already taken.