PTO/STO

lrobb · October 2008

Am I correct in assuming that if we purchase another business we have no obligation to continue the same benefits or payout the existing amounts of PTO/STO on the old employers books unless we agree to it in the contract. Or should the purchase agreement specifically state we will not be transferring benefits or PTO/STO?

Peyton Irby MS · October 2008

You are correct that as a new employer you have no obligation to maintain the same benefit levels of the seller. The purchase agreement should specify the responsibilities of the seller and the buyer. There are a number of variations including the seller reducing the price by the accumulated leave time you would honor or the seller paying out its obligations and the buyer having everyone start anew on benefit accrual.

Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

lrobb · October 2008

Thanks

PTO/STO

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