What is a successor employer?

A successor is an employer who either acquires all of the organization, trade, business, or substantially all the assets of another employer or employers, or acquires a distinct, severable, identifiable, and segregable portion of the business of another employer or employers and continues that portion of the business.

What is a perfectly clear successor?

13 (February 6, 2018). The “perfectly clear” doctrine affects the right of a labor law successor, which acquires a unionized business, to set new terms and conditions of employment. Thus, it can have an important impact on the economics of the commercial transaction.

What is section 9 of the National Labor Relations Act?

(9) The term “labor dispute” includes any controversy concerning terms, tenure or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the …

What are successor wages?

In the predecessor-successor relationship, employees’ taxable wages for the entire year are treated as payments from only one employer, the successor. In this way, the successor incurs fewer unemployment tax liabilities than those in a statutory merger.

What is a successorship payroll?

For purposes of determining whether a successor employer has reached the Social Security wage base, the successor rule allows a successor employer to take credit for the wages that a predecessor employer paid to an employee during the calendar year if certain rules are met.

How do you lose an NLRB election?

Decertification can also occur if the employer received substantial evidence that the union no longer has the support of a majority of the bargaining unit. Typically, this is accomplished through giving a petition, signed by a majority of the bargaining unit, to a member of Management.

What is successor employer on Form 940?

Successor employer: An employer that acquires the property and one or more employees of the proceeding business. No payments to employees: If you did not make payments to employees during the tax year and are not liable for FUTA tax, check this box, sign the form at Part 7, and file Form 940 with the IRS.

What is the “perfectly clear” successor exception to the NLRB?

In reaching this result, the Board overruled prior case law, Galloway School Lines, 321 NLRB 1422 (1996), in which it previously applied the “perfectly clear” successor exception to remedy a successor’s discriminatory failure to hire some but not all predecessor employees in order to avoid a bargaining obligation.

Can successors establish initial terms without Union approval before hiring?

According to the Burns court, “perfectly clear” successors are not free to establish initial terms without first consulting the union representing the workforce the new employer intends to hire.

How do I view the NLRB forms?

To view these NLRB forms you will need the free Adobe Reader, which you can download here . When you click on any of these forms, you first will find instructions on how to fill out and file the form, followed by the form itself.

Does a new employer have to abide by a previous employer’s agreement?

However, a new employer will not be required to abide by its predecessor’s collective bargaining agreement if it makes clear to the union and the employees, either prior to, or at the time of, offering employment to seller’s employees, that it does not intend to be bound by the existing collective bargaining agreement.