Koffee Kup Bakery and Vermont Bread closed abruptly in April of 2021, leaving hundreds of employees jobless without warning or severance pay.
Adding insult to injury, many employees had their paid-time-off (PTO) taken out of their bank accounts without notice or permission.
On May 19, Vermont Attorney General T.J. Donovan filed a memorandum in Chittenden Superior Court compelling Koffee Kup's appointed receiver and lender Key Bank to pay the $797,568.17 in accrued PTO obligations back to the employees.
Yesterday, it was announced that the Court ruled in favor of paying the Vermont Bread and Koffee Kup employees their due funds with interest.
Here is the Attorney General's statement.
I am very pleased with the decision by Chittenden Superior Court today that the outstanding vacation time and paid time off (PTO) of the terminated workers at Koffee Kup Bakery and Vermont Bread Company amounts to wages that must be paid. These hardworking Vermonters are entitled to these funds rightfully earned.
In addition, I am pleased that the Court ordered payment of interest for these funds, which were rightfully owed to employees given the significant delay in payment.
In total, Koffee Kup and Vermont Bread Company workers will be receiving collectively more than $800,000 in PTO, plus $16,437 in interest.
The future of both companies is still uncertain after Flowers Foods purchased them in early June, with no immediate plans to reopen.