Business Management Daily (03/18/12)
Just because a former employee misses a state agency or U.S. Equal Employment Opportunity Commission deadline to file a complaint doesn’t mean companies can’t or won’t be sued. If the employee’s claim is related to the Family and Medical Leave Act, he or she has up to three years to file a federal lawsuit. For routine violations, employees may wait up to two years before suing, but for a “willful” violation, they have up to three years to file.
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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