Under the Federal Alert Safety Act, a covered employer is a company that employs 100 or more employees, with the exception of part-time workers; or 100 or more workers, including part-time workers, who work a total of at least 4,000 hours per week, without overtime. In general, the question of whether a buyer is responsible for claims of discrimination depends on whether the buyer is a successor to the seller. With respect to outstanding debts, the sales contract must indicate whether the buyer or seller is responsible. In a stock purchase situation, it is likely that these restrictive agreements will continue to apply if the purchaser chooses to retain the employees governed by these agreements. In the event of an asset acquisition, the agreements must be reviewed to determine whether the agreements expressly provide that the agreements can be awarded to others. In the case of a share transaction, the buyer puts himself in the seller`s shoes and has the same obligation to reinstate an employee during a necessary leave of absence. Whether, in the event of an asset acquisition, the purchaser is required to reinstate an employee at the end of a leave depends on whether the buyer is a successor to the seller. If the buyer hires all of the seller`s employees, an employee should be reinstated on an fmla vacation, unless the buyer can prove that the employee`s position has been eliminated, whether the employee has been placed on leave or not. Many states have some kind of WARN law. In Minnesota, there is no separate redundancy requirement under the Federal Warrons Act, but employers are "encouraged" to notify the relevant workers and their unions, the government`s employment and training officer and the government of the institution`s location as soon as possible. Parties to a sale transaction should cooperate with their lawyers to determine whether warN Act notifications should be made in connection with the acquisition of a business.
Buyers should be clear in the transaction documents that the seller is responsible for complying with applicable federal and federal laws. It is helpful for the buyer to have a due diligence checklist to ensure that all relevant questions are asked. Buying a business can be an integral part of the expansion and success of an existing business. However, regardless of whether such an acquisition is in the best interests of the purchaser, consideration should be given to the seller`s work and employment obligations, agreements and commitments. Due Diligence is essential to any acquisition and it is important that a worker and an employment law specialist be involved in the planning and documentation of the transaction. The Federal Workforce Recruitment and Recycling Act (WARN Act) must be taken into account when organizing an acquisition. The WARN law requires employers to notify affected workers at least 60 days before the closure of a factory or a collective dismissal that lasts more than 6 months and affects 50 or more workers. In the case of a share purchase transaction, it is likely that the buyer will remain bound by such agreements. This is not necessarily the case for the purchase of a facility, although the seller may require that the buyer offer similar benefits to the seller`s principal employees.