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Koffee Kup benefits battle goes to court

Updated: May. 11, 2021 at 6:38 PM EDT
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BURLINGTON, Vt. (WCAX) - The fight over overtime pay for former employees of the Koffee Kup Bakery is going to court.

Tuesday, the receiver for the business told WCAX News they will pay more than $200,000 for wages and salaries. KeyBank previously said it would pay more than $400,000.

Now, there’s a back-and-forth in court over whether the receiver needs to pay out that money.

When Koffee Kup and Vermont Bread closed their doors just over two weeks ago, more than 400 employees were laid off, 240 of them at the Burlington facility.

Last Thursday, former employees thought Koffee Kup was paying out accrued vacation and sick time when money was deposited into their accounts. But the very next day, the money was removed from the employees’ personal accounts. The holding company says that money was paid in error.

Our Darren Perron spoke with an employment law expert about the benefits battle. Watch the video to see his full interview with Vermont Law School Professor Joe Brennan.

Click here for the Koffee Kup receiver’s explanation about the confusion over payroll.

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