Irvine, CA asked in Employment Law and Business Law for California

Q: If I resign prior to my company filing bk Will they be required to pay accrued vacation? I'm in california.

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1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
  • Newport Beach, CA
  • Licensed in California

A: Excellent Question. It is difficult to say what effect filing a BK will have on any pending payments. It may stop all payments that have not been completed. Before resigning you also have to consider other areas it may impact, such as your ability to get UI benefits. You should see what will happen to your health insurance coverage continuation under COBRA. You may be on the right track but there are a lot of potential impacts beyond your vacation pay. The BK may not affect such a payment or it may get priority as a payment of wages. My suggestion is that you take your entire employment package to an Employee Benefit or ERISA specialist in your area. If you can find one with BK experience as well, this would be good.

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