Legal Question in Employment Law in New Jersey

It depends on how the purchase is structured. If the one company purchased the other as a going concern such as by buying all its stock, then the new company acquires all of the obligations of the company that has been purchased. Nothing changes except ownership. So, the new entity has the benefit and burdens of the contracts that were negotiated by the purchased company including its union contracts. That can play out in different ways depending on what the managers of the combined entity want to do and may be influenced by the labor agreements that come into the combined entity. On the other hand, if the buyer purchased only the assets of the old company, the obligations such as union contracts do not come along. However, there may still be contract liability on the part of the owners of the old company under the contracts. Another alternative is that the buyer might purchase a company as an entitiy and continue to operate it as a separate subsidiary. So more information is needed to fully answer your question.

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