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Attorney General Donovan Files Amicus Brief in Support of Koffee Kup Employees

May 19, 2021

Brief Supports Motion to Compel Receiver to Pay Urgent Payroll Deductions

Contact: Lauren Jandl, Assistant Director of Communications, 802-828-3171

Attorney General T.J. Donovan today filed an amicus brief in support of the Koffee Kup, et al. Emergency Motion to Compel Receiver to Pay Urgent Payroll Deductions. At issue is the refusal of Koffee Kup’s court-appointed receiver and Key Bank to pay $797,568.17 in accrued paid time off (PTO) obligations to employees after the business closed in April. In its brief, the State argues that the Court should compel the receiver and Key Bank to pay employees for the accrued PTO based on Vermont law.

“Koffee Kup employees earned these wages and this money should be paid back to them,” said Attorney General Donovan.

Accrued PTO may be considered wages that must be paid upon an employee’s termination from employment, regardless of a business entering bankruptcy or receivership. The State argues in its brief that Koffee Kup’s accrued PTO is deemed “wages” under Title 21, Chapter 5, and thus payable to all terminated employees within 72 hours. Failure to comply with a statutory mandate to pay wages and benefits would violate both Vermont’s labor statutes and the Vermont Consumer Protection Act.

A copy of the brief is available here.