[‎‎‎‎‎‎‎‎‎USER]

Yesterday with zero notice, the company I worked for laid everyone off and shut down. Zero severance and they are not paying for unused PTO and I had a boatload.

I am not in a state that requires they pay out pto, however, 18 months ago we had 3 employees retire and I confirmed their pto was paid.

Do I have any legal resource based on this?

Yes I know,” talk to an attorney” but I do not have the time or money to do so unless I’m confident I have a chance at winning.

[Madeline]

Most attorneys will do a free short consultation.. they don’t want to take cases that are a waste of time

[David]

Retiring from a company and getting paid PTO is a completely different situation than being let go.

IMHO move on is your best course of action

[David]

Retiring from a company and getting paid PTO is a completely different situation than being let go.

IMHO move on is your best course of action

[Alysha]

Probably not. Their retirement could be part of a package and doesn’t mean they have to do it for others. I’m sorry to hear that though.

You can see if they were required to provide notice via the WARN act.

If they didn’t do it appropriately you can receive back pay.

[Michael]

I’m sure ‘executives’ planning this for a long time and they paid themselves and secured their own golden parachutes.

[Jared]

I went through a very similar situation in the mid 2000’s. The startup I worked for ran out of funding, told us they couldn’t make payroll for the last two weeks, and we were officially laid off.

And no pay out of PTO – I had 3 weeks.

I hate to say, you are pretty hosed in this situation. You can contact a lawyer and they will take your money, and probably send the business a demand letter.

Then spend more money taking them to court.

You can file with your state labor board and the federal board, and they “should” pursue action against them if they violated legal obligations AND they have the funds to pay you.

I was lucky to recover about half of what I was owed, but only after about a year.

A surprise check showed up in the mail one day after they sold their assets to an acquiring company.

[Christina]

I’m so sorry this happened to you idk the answer but if they went bankrupt or closed permanently I’d think there’d be a hearing at some point for debtors.

Best of luck

[Jeremy]

“I am not in a state that requires that they pay out PTO.” Add that to the fact that they have no money left and you know the answer.

Blood from a turnip and all.

[Riddle]

Contact your state’s Department of Labor or Wage & Hour Division.
Even if your state doesn’t require PTO payout by law, the fact that the company previously paid it out to retirees might indicate an implied policy or contract.

Some states treat PTO policies outlined in company documents or consistent past practice as enforceable.

State labor agencies sometimes offer free or low-cost consultations, and they can tell you if it’s worth pursuing a claim.

[Silvia]

If it’s stated in your employee handbook that PTO is paid out upon separation, then I’d fight it.

[Kendra]

That’s such a crappy thing to do and I am very sorry the company left you in this position. Is the company insolvent or did it file for bankruptcy? You may have recourse depending on the jurisdiction.

If they are insolvent, you would be considered a creditor which depending on your state and theirs would mean that who gets paid and when is sorted out by the trustee as part of their bankruptcy.

It may be worth meeting with an attorney that specializes in employment law and/or consumer protection but you’ll likely need to pay a small retainer or consult fee.

[Rochelle]

A lot of different info here.
Definitely consult an attorney. Depending on what type of PTO it is, many states require it to be paid out upon employment severance, up to a certain amount, because it’s considered “earned income”.

Sick days, floating holidays, etc are not part of that pool.

[Chase]

There’s never a guarantee of winning. Ever. If it’s truly that big of an issue, you’d be willing to fight.

Your mindset says you’re not really that concerned about it.

[Lioba]

I think they were just being nice back then paying out PTO when people retired. And now they are not being nice just letting everyone go from one day to the next without notice.

o, I doubt you will get anything. Looks like a lesson in using your PTO as you deserve to use it.

Sorry not advice.

Just my opinion

[David]

Put a dollar value on the PTO just you can quantify how much they’ve taken from you.

This will help when speaking to an attorney.

(And what other people are saying makes sense, it depends on your state)

[Susanne]

If they are caput & filing bankruptcy, betting you’ll get nothing… non-PTO state probably the same.

Worth making a call to an employment attorney for a quick question.

[Susanne]

HR person here who deals with compliance stuff frequently globally –
It depends on what was your handbook, however, if they suddenly closed down and didn’t give packages, it’s very unlikely they have any money to pay you out.

You can speak to the national department of labor who may refer you to a local office.

It’s a super crappy situation, and you can’t be confident in winning because you don’t actually know if they have any money left.

[Shawn]

Both your state law and any documents or discussions you have may come into play.

I recommend finding a good employment lawyer in your jurisdiction and get a real answer.

[Sherie]

It depends what state you’re in. There’s a lot of states out there that are at well, and I don’t think they owe you anything if they get rid of you.

What are three people retiring months ago have to do with People people being let go and not receiving PTO.

Those are two very different concepts.

[Author]

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