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Changing company name doesn’t end legal liability

by on
in Employment Law,Firing,Human Resources

Businesses come and go, especially during tough economic times. But sometimes companies just change names and corporate status, while essentially remaining the same entity. That doesn’t mean their legal obligations just disappear.

Recent case: Felicity Little was fired from her job with a small building-supply company the day before she was scheduled to return from FMLA leave. She sued the company, which had gone out of business be­­tween the time of her discharge and the time she sued.

Little’s lawyers argued this was just subterfuge to avoid liability. The court said the case could go forward. It checked North Carolina corporate rec­ords and saw that the same owners re­­sumed business under another name. (Little v. Stock Building Supply, et al., No. 4:10-CV-129, ED NC, 2011)

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