Business Litigation Report: May 2013

05/31/2013 / Business Litigation Practice Group

 

 


 In the May Issue:


Asset Buyer Held Liable for Seller’s Overtime Obligations
By Christopher J. Harristhal and Susan E. Tegt

 

The Seventh Circuit Court of Appeals recently held, in Teed v. Thomas & Betts Power Solutions, LLC, that a purchaser of the assets of a business subject to claims by employees under the Fair Labor Standards Act (“FLSA”) was subject to successor liability for those claims, even though the purchaser expressly disclaimed liability for the claims under the terms of the asset sale.  711 F. 3d 763 (7th Cir. 2013).  The Teed decision is important to business owners who are considering an asset sale or purchase because any transfer of FLSA liability, like other potential labor relations and employment liabilities arising under federal law, is likely to have a significant impact on the successor’s assets.  Teed advises purchasers to conduct an audit of potential and existing employee claims against the sell er and to adjust asset purchase offers accordingly. To read more, click here.
 

 


New Minnesota Law: Employers Cannot Ask About Prior Convictions on Application
By John A. Kvinge

 

Starting January 1, 2014, most employers will be prohibited from requiring applicants to disclose their criminal history on an initial employment application.  This so-called “ban the box” legislation has applied to public employers in Minnesota since 2009, and was recently expanded to private employers by legislation signed by Governor Dayton on May 15, 2013. To read more, click here.

 

 

 

 

Business Litigation Department Attorneys:

Email
952-896-3312

 
Lauris A. Heyerdahl
Email
952-896-1529 

 

Email
952-896-1572

 

Richard J. "Jay" Reding

Email

 

952-896-6704

 

Email 
952-896-3288

 

Phyllis Karasov
Email
952-896-1569

 

Email 
952-896-3280


John A. Kvinge
Email
952-896-1554
Kenneth

Corey-Edstrom

Email
952-896-3380

Cynthia M. Klaus

Email
952-896-3392

 

Email
952-896-3374 
 

 

Andrew D. Moran
Email
952-896-1541

Email 
952-896-3340

Email 
952-896-3275 

 


Glenna L. Gilbert
Email
952-896-3283


Susan E. Tegt
Email
952-896-3325
L. Kathleen Harrell-Latham

Email
952-896-1544

 

Email
952-896-3318

 

 

952-896-3353

This alert is provided as a service to our clients and firm associates. While the information provided in this publication is believed to be accurate, it is general in nature and should not be construed as legal advice.