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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.
Employers Face Significant Health Care Benefit Cost Increases From COVID-19
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Indiana DWD Shares New COVID-19 Unemployment and Layoff Information
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Cutting Exempt Employee Salaries for Slowdowns Resulting From Virus Is Legal—but Be Very Careful
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Seyfarth Publishes Business Continuity Plan
To prepare for a natural or manmade disaster, companies—including staffing firms—should have continuity plans to assist in the continuance of their essential functions. Staffing firms’ continuity plans must also take into account the operation of client sites to which temporary workers are assigned.
To help staffing firms prepare, Seyfarth has developed a sample Pandemic/Public Health Emergency Business Continuity Plan.
The document is one of several new resources available at americanstaffing.net/covid-19, the association’s COVID-19 microsite. The page is continuously being updated with tools staffing companies can use to address the safety of their workforces and find reliable information about the coronavirus.
Are Staffing Firms Considered ‘Essential Businesses’ During the COVID-19 Crisis?
State and local governments across the U.S. are issuing mandatory shutdown orders, “shelter-in-place” orders, and related interpretive guidance—all designed to immediately restrict the congregation and movement of people during the COVID-19 pandemic. These orders vary in substance and specific restrictions, but most exclude from the restrictions “life-sustaining” or “essential businesses” that may keep their brick-and-mortar offices open. Nonessential businesses must close their offices and may engage in remote work.
Many staffing firms provide temporary and contract workers to essential or life-sustaining businesses such as hospitals, pharmacies, and warehouses. Some state orders simply refer to the U.S. Department of Homeland Security Guidance, issued by DHS’ Cybersecurity and Infrastructure Security Agency on March 19, which identifies workers who should be considered essential to critical infrastructure across many industry sectors. Other orders do not explicitly allow for companies servicing essential businesses to remain open and either omit staffing from their lists of essential businesses or denote employment-related services as nonessential.
Some orders allow businesses that supply essential businesses with essential services to remain open, and ASA believes that a strong argument can be made that staffing firms providing workers to such business provide essential services—and thus should be allowed to keep their offices open and staff them to the extent necessary to provide those services.
A Record Number of Americans Applied for Unemployment Benefits Due to Coronavirus
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Powell Says Economy May Be in Recession, Virus Will Dictate Timetable
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Senate Approves Roughly $2 Trillion in Coronavirus Relief
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DOL to Host National Online Dialogue on the Families First Coronavirus Response Act
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