Employment contracts with corporations transforming into new llc still binding?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Employment contracts with corporations transforming into new llc still binding?
An employment contract was signed by an
employee 3 years ago with a company
‘X’, a corporation. Last year, Company
‘X’ expanded the services it provided
and the owner transformed it into an
new LLC ‘Y’. When this change
happened, are the employment contracts
and covenants still binding?
Asked on June 3, 2017 under Employment Labor Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
A contract like this may be "assigned" by a business, so long as the contract does not state somewhere in it that it cannot be assigned. To be "assigned" means that the contract is taken over by another business. So your employment contract could be assigned by company X to company Y and would still be binding.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.