Employment Help: Company Bought Out

[Aquaman]

I have a pretty detailed employment contract with my current employer. Recently, a competitor bought out my company. My question is whether the new company must honor my old employment contract? The contract does not have any provisions which address such a situation. I am in Texas if that matters... thanks!

 

[l00p]

WHAT? The League of Justice got bought out?

Seriously, it just depends on the contract. I doubt that the old company made a provision for it but you never know.

 

[Zone Read]

I'm an IP attorney, not an employment attorney, which is like asking a foot doctor about brain surgery, but I figure it'll depend on several factors, such as what type of business it was (LLC, corporation, sole proprietorship, etc) and what type of buyout it was. Simply not enough facts given here.

 

[Genco]

Did they buy the company's stock or did they purchase substantally all of the assets?

If they purchased the stock, they acquired your contract and my understanding is that it is enforceable. Does your contract have a change in control clause?

Edit: Just re-read your post and noted you already answered my CIC question. Still need more information. Has the buyer been in contact with the acquired company's employees yet?

 

[EuroHorn]

I believe Genco is correct. Depends on whether it is a share or asset deal. But that is only relevant on whether your contract comes over seamlessly or whether some other actions need to take place, e.g., consent, etc.

However, if this is an acquisition that results in duplicative positions, e.g., back-office, corporate positions, sales, etc., there is nothing that prevents them from eliminating people through some sort of selection process during the integration. My guess is that if it is a competitor that purchased you, there will be overlap.