{"id":1768,"date":"2018-05-01T19:37:29","date_gmt":"2018-05-01T19:37:29","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/az-labor-employment-law\/?page_id=1768"},"modified":"2024-07-31T17:27:09","modified_gmt":"2024-07-31T17:27:09","slug":"company-closing-rights","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/az-labor-employment-law\/blog\/company-closing-rights\/","title":{"rendered":"My Company is Closing. What are My Rights?"},"content":{"rendered":"

Introduction<\/h2>\n

Under \u201cat-will<\/a>\u201d employment laws (which apply in every state except Montana), the employment agreement between an employer and an employee is voluntary for both parties.<\/p>\n

Unless there\u2019s an employment contract or union agreement that says otherwise, that means an employer can terminate or lay off an employee at any time, for any reason that doesn\u2019t involve discrimination.<\/p>\n

If your company is closing\u2014whether the shutdown is permanent or temporary\u2014you have a few important rights to protect your interests. Some of these rights stem from state and federal employment laws (known as statutory rights), while others are established by the company\u2019s formal policies.<\/p>\n

If you have an employment contract or a collective bargaining agreement, these should have measures to protect your rights, too.<\/p>\n

Final Paycheck Requirements<\/h2>\n

Arizona employment law dictates that employers must pay a discharged employee their final paycheck within seven working days or the end of the next pay period, whichever is sooner (ARS 23-353<\/a>).<\/p>\n

Generally speaking, employers are prohibited from withholding the final paycheck unless there is a reasonable, good faith dispute over the owed amount, in which case the employer can only withhold the disputed amount.<\/p>\n

The state of Arizona doesn\u2019t require employers to pay out unused vacation time or accrued sick time. However, if a company offers to pay out accumulated benefit time in its company policy, the company is legally required to honor the policy.<\/p>\n

If your company is closing and you have unused vacation time or sick time, check the employee handbook to see whether or not your employer is obligated to include your accumulated benefits in your final paycheck.<\/p>\n

Unemployment Compensation<\/h2>\n

In the state of Arizona, unemployment compensation is available to residents who are temporarily out of work. Unemployment insurance and benefits are administered by the Arizona Department of Economic Security<\/a>.<\/p>\n

To qualify for unemployment compensation, you must be unemployed through no fault of your own (e.g. you didn\u2019t quit and you weren\u2019t fired for violating company policy), and you must be actively seeking a new job. You\u2019ll also need to satisfy one of the following two financial requirements:<\/p>\n