Legal Question in Employment Law in Michigan

Re: company was bought out... severence not offered to me

The first question which must be addressed is whether you still are employed by the first employer or by what you have called "the new company". Businesses generally are taken over either by a change in ownership of the old company or by a new company purchasing only the assets of the old company.

The key issue is whether your paycheck will continue to come from the original employer or from a new employer. If your paycheck will come from a company other than your original employer, then the original employer must pay severance as its written policy requires, regardless of whether you have been hired by a new company. If your paycheck will continue to come from the same company (i.e., exact same name), then it is likely that there has been no termination of your employment that would give rise to a severance payment. In any event, it will be necessary for an attorney to review the written severance policy, so that the extent of your rights and the obligations of the employer may be determined.

It also is possible that the "new company" simply purchased the assets, including the name used by your original employer. In that case, it would appear that the employer remains the same, even though legally it is a different entity, which might entitle you to severance pay under the policy of the original employer. Once again, this is an issue that should be discussed with an attorney who has an opportunity to review the severance policy and other related documents.

You should contact an attorney or the U.S. Department of Labor in your area, to discuss the particular facts and circumstances which affect your rights and obligations. This response may not be relied upon as legal advice and it is not intended to be legal advice. No attorney/client relationship is created as a result of this response. I may be contacted at 248.788.8225.