Tag: successor liability

Rhode Island

Buyer, Beware: You May Be Liable for Seller’s Wage Law Violations

The Rhode Island federal court recently held that a buyer of an employer’s assets can be liable for the seller’s violations of federal and state wage laws, even if the buyer is a separate entity with distinct management and ownership from that of the seller. If the buyer continues the seller’s business operations, it should conduct careful due diligence and confirm that the seller will have sufficient assets after the sale to satisfy any lingering debts.

Successor Company May Be Liable for Benefits Claim on Predecessor Plan

In this time of corporate restructuring, successor liability in relation to ERISA benefit plans is something to plan carefully in all of its dimensions before complicated, expensive claims take you by surprise. A case involving a top-hat deferred compensation plan — in which a federal court denied a successor employer’s motion to dismiss it from […]