Legal Question in Employment Law in Pennsylvania

Re: Accrued sick and vacation time at time of company selling

You asked about accrued sick and vacation time.

It is generally accepted that sick time has no cash value unless it is earned or used. That is, if a person accrues sick time that is permanently banked then that may encompass leave that cannot be stricken.

It is also well accepted that vacation time is earned and may not be stricken without compensation. Vacation time may not be withheld on separation. Some employers have attempted to lump vacation and sick time together in order to make vacation pay unearned. My interpretation would be the complete opposite, that by lumping those two items together the employer is liable for paying the entire amount.

As for the pending acquisition, the new owner will generally recognize accrued time as it is part and parcel of the sale of the business. It's probably on the books as a liability.

If you want to have some fun, find an employee that has just quit and have that person bring a suit for nonpayment of accrued time.

Otherwise you may wish to take a nice long vacation and develop and illness towards the end.

Seriously, bring the matter to an attorney, sit down and discuss it.

Regards,

Roger