TITLE 28
Labor and Labor Relations
CHAPTER 28-7
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
operations;
(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.)