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Mergers & Acquisitions/severance pay
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Question
If a company sells some of its buildings of operation, but keeps operating other buildings in different geographical locations, are they required to offer those employees severance pay equal to that of which they have traditionally paid?
No. In fact, there is no general obligation to pay severance pay, period, in the United States. Under some circumstances, plant closing laws such as the federal WARN Act and similar state laws may create obligations to pay workers who are not given adequate notice of mass layoffs, but even those statutes do not require severance pay as such.
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Answers by Expert:
David K. Staub
Expertise
I am a business and tax attorney and have spent more than 30 years assisting people in buying, selling, merging and spinning off businesses. I can answer questions on the mergers and acquisitions process and the related legal issues, in general. Topics can include structuring the transaction, negotiating the deal, conducting due diligence, and more. I can also guide people to find sources for answers to specific legal questions which cannot be answered in a forum of this nature.
Experience
I have been an Illinois business attorney for almost 30 years. I have an extensive practice in the mergers and acquisitions area and have been involved in the tax and legal issues on hundreds of business transactions.
Website
Staub Anderson Green LLC
Chicago, Illinois
Mergers & Acquisitions
Illinois business attorneys
Practice Areas
Business Organizations
-Corporations
-LLCs
-Partnerships
-Joint ventures
Mergers & Acquisitions
-Buying/selling business
Securities Law
Tax Law
Technology Law
-Software licenses
-Development agreements
Trademarks
Disclaimer
Responses are intended to be informational only. No response is intended to constitute legal advice or create an attorney-client relationship. Online advice is not a substitute for consultation with an attorney.
Organizations
Illinois State Bar Association; Chicago Bar Association (former Chairman of the Corporation & Business Law Committee and former Chairman of the Mergers and Acquisitions Subcommittee; former Executive Committee member, Federal Tax Committee and Chairman of subcommittee on general tax issues); Glenkirk Foundation (Trustee; Vice-Chairman/Strategic Planning); Association for Corporate Growth, Chicago Chapter; Midwest Entrepreneur Forum; Midwest Association of Alpha Delta Phi - President
Publications
Commerce Magazine; YLS Journal; ISBA Section of Taxation Newsletter; Internet Law Forums
Education/Credentials
Harvard Law School, J.D., 1977; University of Illinois, B.S. in Accounting, with highest honors, 1974
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