Hunton Employment & Labor Perspectives

In a recent decision, the National Labor Relations Board reversed decades of precedent regarding a successor employer’s bargaining obligations following the asset purchase of an entity with a unionized workforce.

In a 3-1 decision released last week, the National Labor Relations Board reversed decades of precedent regarding a successor employer’s bargaining obligations following the purchase of an entity with a unionized workforce. The Board’s decision in Ridgewood Health Care Center significantly reined in the application of the “perfectly clear successor” doctrine, which requires a successor employer to maintain the status quo of its predecessor employer’s terms and conditions of employment.