Total Articles: 4
No FMLA Successor Liability for Dollar Tree.
On September 27, 2010, the Court in Sullivan v. Dollar Tree Stores (No. No. 08-35413, opinion by Judge Graber) reviewed when a new employer is a successor in interest to a former employer under the Family Medical Leave Act ("FMLA").
FMLA UPDATE: New Company Taking Over Store Location Not Required To Give FMLA Leave To Retained Employee.
What happens to an employee’s FMLA eligibility when she begins working for a company who has recently acquired her former employer? The Ninth Circuit Court of Appeals examined this issue in a case titled Sullivan v. Dollar Tree Stores, Inc. The answer depends on whether the acquiring company is a “successor in interest” as defined by the Act.
Successor Employers - Meet the New Boss, Same As The Old Boss
Suppose a retailer declares bankruptcy. Several of its leases are sold off to another retail chain, which then remodels the stores, stocks them with its own merchandise, and opens them under its own name. If this retailer hires some of the bankrupt company's employees, are those employees new hires under the FMLA, or might they have the right to take FMLA leave immediately, without waiting 12 months or working 1250 hours for the new company?
Transfer of Assets or Merger is Not Always Required to Impose Successor Liability Under the FMLA, According to the Sixth Circuit.
In the first federal appeals court decision to address the issue, the Sixth U.S. Circuit Court of Appeals has held that a merger or transfer of assets is not always a precondition to successor liability under the Family and Medical Leave Act (FMLA).
