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> adopted a policy of technically firing everyone from any startup they acquired, and then re-hiring them immediately under the same terms Hmm, interesting. I
by emddudley 8y ago
> adopted a policy of technically firing everyone from any startup they acquired, and then re-hiring them immediately under the same terms
Hmm, interesting. I know of a recent case in New York State where one company acquired another, but selectively retained its employees. The acquiring company thought that it was simply not hiring everyone, rather than firing anyone. One of those people sued for unemployment, and the court found that the acquiring company did in fact have to pay unemployment for the employees it "did not hire".
- ikeboy 8y agoWell the old company fired them, and the old company is now owned by the new company then.
- paxys 8y ago> and the old company is now owned by the new company That isn't necessary. The old company could legally just cease to exist, with its assets transferred over to another entity.
- deleted 8y ago[deleted]
- wool_gather 8y agoLiabilities also transfer.
- randallsquared 8y agoIf they're bundled somehow, sure. Otherwise, the owners of the old company could choose to retain those liabilities and sell only the assets, could they not?