Legal Question in Bankruptcy in Michigan

My employer is filing bankruptcy. Am I entitled to the vacation and personal time I have accrued?


Asked on 2/23/12, 9:05 am

1 Answer from Attorneys

Thomas R. Morris Silverman & Morris, P.L.L.C.

There are two questions here:

The first is whether you are entitled, absent the bankruptcy filing, to the payment of vacation and personal time. That depends upon the terms of your employement. We would need to know whether you have an employment contract (whether written or resulting from the employer's statements and conduct) and what that contract provides. An employee is definitely entitled to pay for actual hours worked, but upon termination of employement is not necessarily entitled to payment for unused benefits such as vacation time or personal time.

The second question is whether the claim for vacation and personal time, assuming that it exists under non-bankruptcy law, qualifies as a priority claim under section 507 of the Bankruptcy Code. If so, you may stand a better chance of receiving payment.

Without more facts, I cannot answer either of these questions.

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Answered on 2/23/12, 9:18 am


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