§28-7-19.1  Mergers and consolidations of companies. –

Published: 2015

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Labor and Labor Relations


Labor Relations Act

SECTION 28-7-19.1

   § 28-7-19.1  Mergers and consolidations of

companies. –

(a) No business combination transaction shall result in the termination or

impairment of the provisions of any labor contract covering persons engaged in

employment in the state negotiated by a labor organization or by a collective

bargaining agent or other representative. Notwithstanding a business

combination transaction, the labor contract shall continue in effect until its

termination date or until otherwise agreed by the parties to the contract or

their legal successors.

   (b) As used in this section, the following words, unless the

context clearly required otherwise, have the following meanings:

   (1) "Business combination transaction" means any merger or

consolidation, any sale, lease, exchange, or other disposition, in one

transaction or a series of transactions, whether of all or substantially all

the property and assets, including its good will, of the business operations

that are the subject of the labor contract referred to in subsection (a) of

this section or any transfer of a controlling interest in the business


   (2)(i) "Employment" means an individual's entire service, if

the service is localized in the state. Service is deemed to be localized in the

state if:

   (A) The service is performed entirely within the state; or

   (B) The service is performed both within and without the

state but the service performed without the state is incidental to the

individual's service within the state;

   (ii)(A) Employment shall include an individual's service,

performed within and without the state, if the service is not localized in any

state, but some of the service is performed in the state; and

   (B) The individual's base of operation is in the state; or

   (C) If there is no base operations, then the place for which

the service is directed or controlled is in the state; or

   (D) The individual's base of operations or place from which

the service is directed or controlled is not in any state in which some part of

the service is performed, but the individual's residence is in the state.

   (c) In the event that any employee is denied or fails to

receive wage, benefits, or wage supplements as a result of a violation of this

section, the employee shall have available civil and other remedies available

at law or equity. The department of labor and training may take any and all

appropriate actions to enforce the provisions of this section, including, but

not limited to, injunctions, cease and desist orders, and other penalties

provided by law.

   (d) Recovery pursuant to a violation of this section shall be

applicable to secure recovery against the merged, consolidated, or resulting

corporation or other successor employer, notwithstanding anything contained in

this section or elsewhere to the contrary.

   (e) This section is enacted in order to protect the

employment interests of all persons engaged in employment in the state under

existing labor contracts and shall be liberally construed in every case in

order to achieve that purpose.

History of Section.

(P.L. 1990, ch. 138, § 2.)