Buyers' Immunity Under Employment Law Is A Myth

Law360 (July 10, 2019, 11:33 AM EDT) -- Asset purchases of businesses is a steadily increasing commercial practice. There were 5,185 such business transactions in 2018, according to Standard & Poor's reports, while 2019 is on pace for more with 5,254 projected based on the deals done through late June. For that many deals, it is time to start paying closer attention to the employment law liabilities that buyers may inherit.

Asset purchasers disclaim liability on claims against their sellers. While shedding those liabilities is intrinsic to the structure of every asset purchase, statutory employment laws impose an oft-overlooked limitation on that disclaimer. This is not new: It began...

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