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The Seventh Circuit Court of Appeals recently held, in Teed v. Thomas & Betts Power Solutions, LLC, that a purchaser of the assets of a business subject to claims by employees under the Fair Labor Standards Act (“FLSA”) was subject to successor liability for those claims, even though the purchaser expressly disclaimed liability for the claims under the terms of the asset sale. 711 F. 3d 763 (7th Cir. 2013). The Teed decision is important to business owners who are considering an asset sale or purchase because any transfer of FLSA liability, like other potential labor relations and employment liabilities arising under federal law, is likely to have a significant impact on the successor’s assets. Teed advises purchasers to conduct an audit of potential and existing employee claims against the sell er and to adjust asset purchase offers accordingly. To read more, click here. |
New Minnesota Law: Employers Cannot Ask About Prior Convictions on Application By John A. Kvinge
Starting January 1, 2014, most employers will be prohibited from requiring applicants to disclose their criminal history on an initial employment application. This so-called “ban the box” legislation has applied to public employers in Minnesota since 2009, and was recently expanded to private employers by legislation signed by Governor Dayton on May 15, 2013. To read more, click here.
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Business Litigation Department Attorneys:
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