Vacation pay and the sale of a company

[consult100]

What is the name of your state (only U.S. law)? Illinois

Will a seller have to pay unused vacation out upon "termination" of their employment, even if the employees become employees of the buyer immediately? Can the buyer agree to take on the accrued time, thus continuing the bank that the seller's employees had accrued? The seller would obviously prefer this (unless they can get the buyer to up the price to cover it) and they believe that a lot of the employees would prefer it as well (so that they don't start over at "0".)

thanks!

 

[cbg]

The law does not say one way or the other. It will depend on the terms of the sale. In your state, you cannot lose what you have earned so the acquiring company will either have to pick up the unused balances or pay them out (the selling company could conceiveably pay them out too) but the law does not address which.