April 2013

An employer received a report of a manager harassing his subordinates. The employer appears to take all the right steps: 1) conducting an investigation; 2) involving several higher-level managers in the decision-making process; and 3) even hiring an outside law firm to assist it in deciding what discipline to impose.

BUT, months later, after the manager had been suspended and had his pay docked (a “fine”), the employer has fired the manager (yet he still qualified for a large bonus), the manager’s assistant has resigned, the manager’s supervisor has resigned, another high ranking official with the employer has resigned and the employer is in the midst of a public relations nightmare.

Continue Reading Seemingly “Right” Process Cannot Save “Wrong Result”

The Seventh Circuit recently held that a purchaser in an “asset deal” of a business in receivership was found to be a successor employer for the purposes of a $500,000 wage/hour settlement. The liability was imposed on the purchaser even though the contract formalizing the asset deal expressly excluded that liability. Teed v. Thomas & Betts Power Solutions, LLC. Found here.

Continue Reading Successor Liability in “Asset Deal” Extends to Wage/Hour Liability