News & Analysis as of

Successors Employer Liability Issues

Goodwin

Delaware Court of Chancery Holds Buzzfeed Not Bound by Pre-SPAC Merger Employment Agreements

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On October 28, 2022, Vice Chancellor Morgan T. Zurn of the Delaware Court of Chancery ruled that the declaratory action brought by Buzzfeed Inc. against 91 current and former employees is not bound by arbitration provisions...more

Littler

Philadelphia Expands Protections for Security, Janitorial, Maintenance, Food and Beverage, Hotel, and Health Care Employees Whose...

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The Philadelphia Protection of Displaced Contract Workers Ordinance offers job protections to workers providing security, janitorial, building maintenance, food and beverage, hotel service, or health care services who are...more

Seyfarth Shaw LLP

New York City Enacts Protections for Displaced Hotel Service Employees

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Seyfarth Synopsis: Nearly eighteen years after the Displaced Building Service Workers Protection Act was signed into law, on September 28, 2020, Mayor de Blasio signed Int. No. 2049-A into law, which establishes protections...more

BCLP

The Accidental Successor: Asset Buyers Must Take Care to Avoid Unintentionally Becoming a “Perfectly Clear Successor”

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Asset Buyers, beware.  If the Seller has union-represented employees, and you intend to hire some or all of those employees and operate the assets as a union-free employer, take care to avoid becoming an accidental successor....more

Sheppard Mullin Richter & Hampton LLP

It’s Perfectly Clear Once Again— NLRB Limits “Perfectly Clear” Successor Exception

The circumstances under which an asset buyer has a duty to bargain with an incumbent union may be changing. In NLRB v. Burns Security Services, Inc., 406 U.S. 272 (1972), the Supreme Court held that an employer who purchases...more

Husch Blackwell LLP

NLRB Overrules Precedent And Limits Use Of Perfectly Clear Exception In Successorship Law

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On April 2, 2019, in a 3-1 decision split along party lines, the Trump administration’s National Labor Relations Board (Board) appointees significantly narrowed the circumstances under which a successor employer will be...more

Seyfarth Shaw LLP

Blurred Lines: Under New “Perfectly Clear” Standard, NLRB Finds that Seller’s Conduct Prohibits Asset Purchaser from Setting...

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Seyfarth Synopsis: In yet another pro-union, results-driven decision, the NLRB announces a new approach to evaluating whether an asset purchaser has forfeited its right to set initial terms and conditions when offering...more

Littler

New York City Expands Law Governing Displaced Building Service Workers

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Mayor Bill de Blasio recently signed a bill amending the New York City Displaced Building Service Workers Protection Act (“the Displaced Workers Act” or “the Act”), first enacted by the City Council in 2002. As originally...more

Proskauer Rose LLP

NYC Expands Scope of Displaced Building Service Workers Protection Act

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Background - In 2002, Mayor Bloomberg signed the New York City Displaced Building Service Workers Protection Act ("DBSWPA" or "Act") into law. The DBSWPA significantly affects companies' labor and employment...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

NLRB Makes a Mess of the Burns Successorship Analysis and Worker Retention Laws

New York City’s Displaced Building Service Workers Protection Act (DBSWPA) is one of numerous local worker retention laws, which apply to various industries in jurisdictions across the country, such as Los Angeles, San...more

Seyfarth Shaw LLP

NLRB Forces Buyers To Become “Successors” Against Their Will

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While all eyes were on the landmark Browning-Ferris decision issued Thursday, the Board issued yet another split decision that also may have far reaching consequences. In GVS Properties, LLC, 362 NLRB No. 194 (Aug. 27, 2015),...more

Robinson & Cole LLP

New York Labor Law Amendments Put LLCs and Their Members on the Front Line

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The New York State Legislature passed a bill on June 19, 2013, intended to update New York’s labor law, including the Wage Theft Protection Act (WTPA). The bill (A 8106-C, S5885-B), signed into law by Governor Andrew Cuomo on...more

Bradley Arant Boult Cummings LLP

It’s All in the Family: Shifting Standards for Joint-Employer Liability

The concept of joint-employer liability is popping up in the news a lot again. This is because the NLRB is taking a more aggressive view on joint-employer standards under the National Labor Relations Act, particularly as to...more

Brownstein Hyatt Farber Schreck

NLRB Reverses Its Stance on Determining Successor Liability for Refusal to Hire

Companies who have bought or are considering buying unionized workplaces should familiarize themselves with a significant decision affecting liability issues made last month by the National Labor Relations Board (NLRB). ...more

Genova Burns LLC

Employer Can Be Liable For Its Predecessor’s FLSA Violations

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The Third Circuit Court of Appeals recently held that an employer can be liable for its predecessor’s violations of the Fair Labor Standards Act. Thompson v. Real Estate Mortgage Network, No. 12-3828 (3d Cir. Apr. 4, 2014)....more

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