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Foreign Student Labor Protests at Hershey Co. Center Lead to Citations for Exel, SHS Staffing

Published February 22, 2012 ■ Legal Watch

PennLive (02/22/12) David Wenner

The U.S. Occupational Safety and Health Administration has cited Exel Inc. and SHS Staffing Solutions for various violations months after foreign students said they had been exploited while working at a Hershey Co. distribution center. OSHA cited Exel, which operates the distribution center for Hershey, for alleged violations that include neglecting to keep track of work-related injuries and illnesses and neglecting to carry out a sound program to protect workers’ hearing. OSHA also cited SHS, the staffing company that hired the students. SHS could be fined $5,000 for allegedly neglecting to properly train the workers. Exel and SHS have 15 business days to comply with the penalties, contest them, or request additional information.

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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.

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