If your organization is in good fiscal shape in these tough times, top brass may be looking to snap up the assets of failed companies at bargain prices. Remind
Recent case: When Newcor, which had a location in Michigan, filed for bankruptcy, it sold some of its assets, including the Michigan facility. Michigan’s labor laws provide that an entity that buys more than 75% of a business is the successor employer and “inherits” any employee liabilities.
When that issue arose in court, the buyer was able to show that it had bought far less than 75% of Newcor—but only after protracted litigation. Had it reviewed the purchase in detail first, it might have avoided litigation. (Midwest Rubber v. Michigan, No. 278223, Court of Appeals of Michigan, 2008)
- 10 Secrets to an Effective Performance Review
- When you learn of possible harassment, investigate promptly, take fast action
- Focus on safety--Not reducing claims--When discussing workers' comp
- Whistleblower Act doesn't always require providing written notice to employer
- Document all disciplinary actions, including why and when you decided to act