Selling the company: When must we tell employees? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Selling the company: When must we tell employees?

Get PDF file

by on
in Employment Law,Human Resources

Q. We are selling our small business (15 employees). The company buying us won’t be hiring our staff. How many days’ notice is required to notify our employees? Will our employees qualify for unemployment benefits? — Chenna, Texas

A. You don’t have to provide any notice but, of course, your employees will appreciate whatever notice you can provide. The Worker Adjustment and Retraining Notification Act (WARN)—the federal law that requires you to notify em­­ployees of mass layoffs or plant shutdowns—applies only to much larger layoffs. And although a few states have “mini-WARN” laws that might apply to a smaller business, there is no such law in Texas. (Learn more about WARN:

Regarding unemployment benefits, it is likely the em­­ployees will qualify, provided they meet other eligibility requirements, because they are losing their work through no fault of their own.

Leave a Comment

Previous post:

Next post: