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Is It Illegal For A Company To Not Pay Earned Vacation Pay Once It Has Changed Owner?

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KPSC25

Junior Member
I Live and work In Indiana, Recently the company I have been working for, for the past 4 years was given back to the original owners. I had worked for the original owners for two years, in that time I had earned two full weeks (80 hours) of vacation pay. When the new owner took over we were told that we had to sale back our vacation pay. So in other words we would still get the pay we had earned for vacation time but we could not take the time off with pay. That was fine with all the employees as we still received the money for the vacation time we earned. Fast forward two and a half years later the company that had bought us two years ago didnt pay the loans and fees so we were given back to the original company, basically the first owners foreclosed on the new owners for non payment. Now we have been taken over by the first owners.Our manager was told to allow all of us to "sale" our vacation time that we had earned and to add it to our paychecks that were suppose to be paid by the owners who lost us. So the manager had us all fill out paper work saying we would sale our vacation time and get the money instead of the time with pay. On the day we were suppose to be paid after the original owners took over (but still in the same pay period of the past owners) our paychecks were delayed and we were suppose to be paid on Friday and were being told that we may not be paid until 1:00pm ...when they still hadnt come they said 5:00pm..when they still hadnt come they said no later then 6:30pm...they ended up getting there at 7:30pm but at least they got there and we received them. However Our Vacation Time that was suppose to be on the paychecks that we were told we had to sale was not on there. Since the owners that were forclosed on are Not allowed on the property anymore and we have no way to contact them . We asked the New owners (who are really the first owners) what was going on with our vacation pay. And we were told that we could still take the time off if we wanted it but we would NOT be paid for it, and that we all lost all of our vacation time when they took us back over. From what I have been hearing it is illegal for a company to not honor our vacation with pay if we had earned it and it is in our benefits package (which by the way is the ONLY thing in our benefits package besides a few holidays that are paid we dont have insurance offered to us or what not.) All of us are pretty upset as you can imagine because most of us have been here for over four years...previous years with the first owners who took us back over and two and a half years with the other owners who didnt pay the loans and lost us. We work in the hospitality field if this is any help. If anyone has any advice please share it. Is our vacation pay required to be given to us since we earned it? We really dont care who is required to pay for it if its this owner or that owner we just want to know if someone does by law have to pay us for it. :confused:
 


swalsh411

Senior Member
That is one dense paragraph. It would help a great deal if you trimmed it down some.

When you say "take the time off but not get paid for it" do you mean unpaid leave, or paid leave but they said you won't get paid for it if you terminate?

Have you contacted the Indiana Dept of Labor?
 

KPSC25

Junior Member
Sorry Swalsh for the long paragraph but thank you for the reply. I realize its a long story, but I wanted to include everything to get the best possible answer. To answer your question when I said "take the time off and not get paid for it" I meant they told us we could still take the time (like saying we could request a day off or a week off or whatnot for vacation) and they would still grant us the time off..but we wouldnt be paid to take that time off ..as if we would have been if we were taking our earned Paid Vacation like nothing had happened.
 

KPSC25

Junior Member
Also as of right now we are being told that we will all still keep our jobs as long as the company stays open and we wont be terminated. Unless of course we do not stay opened.
 

pattytx

Senior Member
Even if ownership hadn't changed, there is no law that provides that the employer pay for days off for personal reasons, even if you DO have time on the books. In Indiana, courts have decided that accrued vacation is payable at termination, if it comes to that.
 

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