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Can they withhold vacation pay because they are in chapter 11?

I was let go of a company that is in chapter 11. In our handbooks it states "if termination of emplyment is voluntarily or involuntarily, they will receive pay for all unused and earned vacatoin leave" When I was let go they told me that I may or may not get my vacation money. It’s up to the courts to decide. Is this right? I thought that wages and other items like it were first in the courts eyes?

It’s up to the BK judge. You’ll have to wait to see what the BK judge says.