News & Analysis as of

Private Equity Employer Liability Issues

Seyfarth Shaw LLP

Looking Past the Headlines, the Impact of the FTC’s Ban on Non-Competes in M&A, Private Equity and Venture Capital

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Last week on April 23, 2024, the FTC adopted a final rule that would effectively ban non-compete agreements in the context of employment relationships when the rule becomes effective on September 4, 2024, absent a stay or...more

Skadden, Arps, Slate, Meagher & Flom LLP

Insights – June 2023

This edition of Skadden’s quarterly Insights looks at the latest trends in shareholder activism, the scrutiny companies are facing over their ESG disclosures and employment considerations for using AI in the workplace, among...more

Proskauer - The Capital Commitment

The Portfolio Company Playbook – Chapter 3: Navigating Risk from Company Employee Claims

Another source of litigation risk for fund sponsors are claims brought by portfolio company employees. Sponsors should be aware of these risks, particularly when the portfolio company is in distress or is considering a sale...more

McDermott Will & Emery

Three Digital Health Trends Affecting Investors in 2021

McDermott Will & Emery on

Private equity deal volume hit a low in the first half of 2020 as the pandemic slowed the US and global economies. But toward the end of the year, deals began picking back up, particularly in the digital health space. ...more

Proskauer Rose LLP

UK Tax Round Up - February 2020

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UK General Tax Developments - HMRC updates to the private sector IR35 rules - On 7 February 2020, HMRC confirmed that the new private sector IR35 rules will only apply to payments made for services provided on or...more

Fisher Phillips

Top 10 Things All Employers Need To Know About Autonomous Vehicles

Fisher Phillips on

We’re living at a time when a unique convergence of multiple trends is ensuring that autonomous vehicles (AVs) will soon change life as we know it. On the technology side, vehicles are trending towards being electrified and...more

Proskauer - Law and the Workplace

Employees Face Uphill Battle in Holding Private Equity Firms Accountable under WARN Act

The United States District Court in Delaware recently issued a welcome decision for private equity firms whose portfolio companies run afoul of the Worker Adjustment and Retraining Notification Act (the “WARN Act”). In In re...more

Troutman Pepper

1099ers Exposing Startups, Private Equity Firms to Costly Liability

Troutman Pepper on

A recent online edition of New York Magazine’s “Daily Intelligencer” includes a comprehensive article on how Silicon Valley startup tech companies using “the 1099 model” may be exposed to employment, tax and benefit law...more

Mintz - Employment, Labor & Benefits...

Who Should Hold the Bag for Employment Liabilities When the Portfolio Company Goes “Belly-Up”? The private equity firm, maybe.

In the world of private equity, vast sums of money are raised by private investors who pool their money into collective funds in order to acquire companies, i.e., a “portfolio company”, with the goal of eventually flipping...more

BakerHostetler

A WARNing to Private Equity Regarding Potential Liability for Employment Decisions by Portfolio Companies

BakerHostetler on

A federal district court in Indiana recently ruled that a plaintiff's class action lawsuit could proceed against both a New York private equity firm and one of its portfolio companies for an alleged violation of the Worker...more

Mintz - Employment, Labor & Benefits...

PE Funds May Be Liable For Portfolio Company Pension Liabilities

Introduction - A recent decision by the U.S. Court of Appeals for the First Circuit increases the risk that a private equity fund could be liable for its portfolio company’s unfunded pension liabilities. Additionally,...more

K&L Gates LLP

First Circuit: Private Equity Sponsor Liable for Portfolio Company Pension Underfunding

K&L Gates LLP on

In a decision that could have significant implications for private equity investors, the United States Court of Appeals for the First Circuit has determined that a private equity fund may be liable under ERISA for an...more

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