Legal Question in Employment Law in New Jersey
prior paychecks when a new owner takes over
Just a question...
I work for a daycare that was put up for sale and recently purchased by new owners. The closing is Friday and Monday, it is expected that they will replace my current boss.
We get paid every week, but the cycle is set up so that we are two weeks behind.
Who is responsible for the last two weeks of pay prior to the new owner taking over?
1 Answer from Attorneys
Re: prior paychecks when a new owner takes over
That depends on what is being sold and you might not be privy to that information. Assuming that the business is being sold, the business continues to be responsible for pay to employees. Ownership is irrelevant except that, if the business is not a corporation or LLC, the old owners may still be liable if the business does not pay.
If only the assets are being sold, then the old business is liable for payments up to the time of sale. The new business makes its own arrangements with employees of the old business after the sale.
See also: http://info.corbettlaw.net/lawguru.htm
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