Legal Question in Employment Law in Alabama
Vacation and Benefit Upon Termination
Can an employer deny payment of vacation benefits when the company loses a contract and has to terminate the employees in an entire department of the company when the main company is still solvent?
1 Answer from Attorneys
Re: Vacation and Benefit Upon Termination
No.
But... How many people in this department, and how much total pay are we talking about? If it's only a few thousand dollars total, it makes it a difficult case because it's too small for an attorney to get involved. If it is a large number of people though the case may indeed become worthwhile if you can organize everyone together.
There are no specific laws that protect vacation pay, but it is generally a contractual matter. You have a contract for vacation pay, and to the extent it is accrued you are entitled to it.
If you, or any of your colleagues, did not get paid for time actually spent working though - that is a different story altogether. In that situation, you have the Fair Labor Standards Act which provides for mandatory attorney fees and in that scenario you are on much stronger footing.
If you have any further questions please do not hesitate to call me at 205-458-1100.
Sterling L. DeRamus