Calvin Associates, Inc.

post »Employment Law Issues in Mergers and Acquisitions 6-28-16

June 29 2016, 2:57 am

Bruce’s Summary: Mergers and Acquisitions can be a great event for two organizations or if it’s hostile, not so great. Regardless of which occurs, a number of employment laws get triggered and if not reviewed and analyzed carefully can cause not only morale issues but legal headaches as well.

The author does a good overview of a number of employment law pitfalls that occur frequently. The combining of compensation and benefit programs is always tricky because someone is always affected and not always in a positive way. The author did bring up the new requirements coming from the EEOC regarding organizations being required to provide pay information on the EEO-1’s in little more than a year out. Policies always need combining and besides as soon as they are printed, something changes and they are already outdated. One of the biggest challenges is when there is an overlap of functions, particularly in the areas of HR, Finance, Accounting and Information Technology. The author presents a good overview of how critical it is to keep communication lines open with employees during all phases of the merger & acquisition process. My experience has been that during the M&A phases, as the process evolves, it’s okay to say you don’t know and get back to employees when you do know something, it helps keep the fear level down and is appreciated. “No news” can actually turn out to be “bad news.” “None of the information contained herein should be construed as legal advice, nor are Calvin Associates consultants engaged to offer legal advice. If there is a need for legal advice, please contact and seek the advice of independent legal counsel.”