Legal Question in Employment Law in Maryland
Vacation due after company take over
On Oct. 8 I was informed that the company for which I had been working since Sept. 1999, had been bought, as of Oct. 1, 2003, by another company based in Los Angeles. I am a contractor. Along with other employees of the old company, we were assured nothing would change except the letterhead, and our benefits would not be affected. Fine. Then, two weeks later we (empoyees of the old company retained by the new) were told that all our vacation and sick leave would not be paid by the new company and we would be starting anew, at 0. The old company apparently refused to pay. The new company bought the old company's assets. I have been working in this position as a contractor for two years and did not join--I was never informed of any company sell out. I had 130 hours of vacation. A number of other employees are in the same situation.
1 Answer from Attorneys
Re: Vacation due after company take over
Very difficult result; there are some facts that would be important to know in order to determine what can be done for you and your co-workers -- exactly how was the so-called contractor relationship set up (and how is it set-up now); who sold the assets of the old corp (i.e. who got the money from the sale of the assets). Also, how many other people are there who lost vacation time or other accrued benefits.
The Federal Fair Labor Standards Act, plus ERISA, govern most benefit and wages issues --- they have wide ranging definitions for who is determined to be an "employer", and may run either to the new contractor (notwithstanding the asset sale) or to the sellers of the assets (i.e. to the prior company). Likewise similar state laws would apply. There are other possible claims as well.
please feel free to give me a call if you would like to chat about this.
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