Important Labor & Employment Considerations Involved in Purchasing a Business
When it comes to transactions involving business purchases, it is crucial that the purchasing company conducts due diligence concerning the businesses’ operations and potential liabilities; especially when it comes to human resources and labor and employment law matters. Specifically, it is important to ascertain whether there are risks that could affect the value of the transaction and therefore whether the company needs to engage in activities to mitigate those risks. While labor and employment issues have not historically presented a significant amount of risk and potential liability, this is changing, and there are now a number of emerging legal issues in this field which have the potential to affect the proposed transaction. Below, we identify some of these risks and discuss how to address them via mitigation strategies. General Areas of Concern There are several general areas when it comes to basic labor and employment issues; including but not limited to the following: Compliance with any liability regarding local, state, and federal laws, contract employment documents, and legal duties arising out of employment relationships; Demographics, organizational structure, and workforce operations; Employee benefits; Labor and employment costs; and Labor union matters. When it comes to high-risk categories, it is crucial that you obtain assistance from qualified legal counsel and assessing the degree of risk and liability. Sexual Harassment Claims Sexual harassment claims are becoming an increasingly important issue when it comes to business and employee conduct. Cording to the Equal Employment Opportunity Commission (EEOC), just between 2017 and 2018, 74 percent of all charges included sexual and workplace harassment allegations. These charges not only carry significant financial risk in terms of compensatory and punitive damages, but also exposure for the company, and tort litigation– such as assault, battery, and decimation–not only against the company, but also against directors and officers for failing to properly regulate the conduct. In addition, any evidence of cover-ups should be of concern to a company that is acquiring a business, as that can adversely impact the purchaser. Wage and Hour Claims Wage and hour claims are also an emerging issue that carry increasing financial impacts, as these claims can be substantial, and now average between $10 million and $50 million. These claims tend to involve the following issues: failure to pay minimum wage; failure to play pay for work; improper rounding; misclassification of employees as independent contractors; misclassification of employees concerning overtime; improper compensable time practices; and improper rounding. A number of courts have held that successor companies can be held liable for previous wage and hour violations; even if they occurred before the purchaser acquired the company. There are also additional unique state law claims, for example, state laws that concern workplace safety. Contact Our Florida Business Attorneys to Find Out More At HD Law Partners, our Tampa business and corporate attorneys possess the legal knowledge and experience to help address any business transaction concerns and prevent problems before they can occur. Contact us today to find out more about our services. Resource: law.com/texaslawyer/2019/04/08/three-emerging-labor-and-employment-risks-in-ma-transactions/ Posted in Uncategorized | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us