Legal Question in Bankruptcy in California
Do employees keep sick and vacation benefits after company bankruptcy
The company I work for declared bankruptcy(ch.11, then 7). Do I get to keep and use my accrued sick and vacation time?
1 Answer from Attorneys
Re: Do employees keep sick and vacation benefits after company bankruptcy
I'm not sure what you mean by "get to keep" it. If you already have it, then yes you can keep it. If you are asking whether or not it will be paid to you in the future, that depends on what assets are available for distribution to creditors. As an employee, you have a priority claim up to $4,300 for wages, vacation benefits, etc., earned within 90 days prior to the bankruptcy being filed. There are some types of claims that still take priority over that, however, such as attorneys fees, trustees fees, etc.