Where is successor liability defined for back wages?

[Patrick_in_CA]

What is the name of your state? CA

My ex employer has created a 'new' company (same address, customers, management team, etc) in order to dump debt. They are doing an assignment for Benefit of Creditor, then a chapter 11 of the old company.

I'm fairly certain the 'new' company will qualify for successor liabilty of unpaid back wages (mine in excess of $100K).

I've been told the FLSA clearly defines successor liability requirements in the case of unpaid back wages, but I cannot find it anywhere. Any help?

Much thanks.

 

[Beth3]

Have you called the federal Department of Labor? I expect they can specifically advise you about successor liability that may be outlined in the FLSA.

202-693-46540

 

[Patrick_in_CA]

Determining successor liability

Thank you Beth. The DOL was indeed helpful and provided some guidelines for determining successor liability. I will share these here for the benefit of the forum. In fact, I have seen this similar list in proposed legislation for the state of California (it did not pass, probably because it already covered in federal law). The problem is, that I cannot find these in a LAW or statute anywhere. Case law? where? Aaargh! Where is it?

Does anyone know where the following is part of a statue, act, or a law?

A new entity may also be a successor when it ratains common aspects of the prior business and the management of the new business knew of the violations at the time of purchase of the old enterprise. Factors to consider when determining whether the new entity retains common aspects of the old enterprise include:

1. Common Management and/or supervision
2. Common business purpose
3. Common premises or equipment
4. Common customers
5. Common employees
6. Common methods of operation, the same product manufactured or sold, or the same services rendered​

Much thanks.