Am I liable for vacation owed by previous owner

[funnybunny]

What is the name of your state?What is the name of your state?WA

I owned a business between April 2001-October 2004. The business was sold in Oct 04. The previous owner gave an employee 3 weeks vacation every year because she had worked there for 15 years. We honored her seniority and paid her 3 weeks vacation since 2001 and paid her altogether 12 weeks of vacation during the time we owned the business.
After we sold the business in Oct 04, she quited in Feb 05.
She claimed that I owed her vacation because the vacation I paid her in 2001 was her accured vacation from 2000. I still owe her vacation pay for 2004. And the new owner would owe her vacation pay for the duration of her ownership which is about 5 months.
Am I responsible for accrued vacation from previous owner?

 

[cbg]

This could be a bit tricky because a lot would depend on the terms of the sale and the manner in which you agreed to take over the benefits. You should probably run this past your attorney.

However, for the most part, the state of Washington does not require the payout of unused vacation at termination at all. Unless she had a contract that stated otherwise, the strong likelihood is that not only do you not owe her any more, you probably didn't need to pay her as much as you did.

Check with your attorney just to be safe, just in case there's a clause that says otherwise somewhere in the terms of the sale.

 

[funnybunny]

cbg,
Thanks for your input. I'm pretty sure the sale contract did not include any liability such as accrued vacation.
Could you tell me where I can find out information regarding Washington state law not requiring to payout unused vacation? I've check the labor department website but couldn't find anything.
Thanks!
Funnybunny

 

[cbg]

It's not that you're going to find anything in the law that specifically states, an employer doesn't have to pay out vacation at termination. It's that you WON'T find anything that says you DO have to pay it.

If she comes back to you claiming that the law says you have to pay it, don't play her game and go running to defend your decision. Tell her fine, that she should show YOU the law that says you have to pay it.