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.
Tag: successor liability
A successor employer could not escape paying a $500,000 damages award for the previous owner’s Fair Labor Standards Act violations. The case, Teed et al. v. Thomas & Betts Power Solutions LLC, Nos. 12-2440, 12-3029 (7th Cir. March 26, 2013), involved a tricky analysis of whether the purchaser of a business could be held responsible […]
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 […]