The new worker classification rules published by the U.S. Department of Labor this week (as reported in Staffing Today Tuesday) point up the importance of clients using staffing firms that operate as employers. The new rules likely will increase the risk of using app-based job platforms that classify workers as independent contractors. ASA has published resources to help members educate their clients on the advantages of using W-2 staffing firms—which the overwhelming majority of firms are—and the legal risks of using workers classified as independent contractors.
Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?
Buyers of a business generally expect sellers to be responsible for certain liabilities relating to when the seller owned its business—a concept mergers and acquisitions professionals refer to as indemnification. Indemnification is one of the most heavily negotiated, and potentially most significant, provisions of a purchase agreement, and understanding the terminology common to such agreements is essential when negotiating a deal. Attorney Paul Pincus of Ortoli Rosenstadt LLP explains what sellers are liable for, how a seller’s liability may be limited, and how buyers may seek to fund potential indemnity claims.