Ore. court rules for employees in case of new management at old establishment
The new owners of an existing restaurant and bar in Oregon are responsible for paying the back wages of workers who were employed at the same location and in the same general capacity, according to a ruling from the Ore. Supreme Court.
Although the staff who were owed compensation for previous employee attendance and duties had never worked for the new management, the state's highest court ruled that the many similarities between the previous operation and the new one made the owner legally responsible for payment, according to attorney Sarah J. Ryan of law firm Jackson Lewis P.C. The new business' use of the same facilities, vendors and equipment, along with a very similar operating name and general atmosphere were factors in the court's decision.
The ruling included the application of state and federal laws relating to liability and compensation, including the Fair Labor Standards Act. Labor attorney Andrew Frisch pointed out in a recent article that many circuit and district courts are applying a common law test to similar claims for back payment by successor companies.
It is in many businesses' best interests to use attendance tracking software as part of an overall record keeping and wage management scheme.
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