Is my contract valid?
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Is my contract valid?
I work for a large medical group practice. We were recently acquired by a larger medical group pactice. Is my contract with my 1st group still valid with the second group? And can they make changes without my consent?
Asked on March 5, 2019 under Employment Labor Law, Pennsylvania
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
It depends on how the 1st group was acquired by the second. If the 1st group was some sort of corporation or limited liability company and the 2nd group bought the actual LLC or corporation, then your contract is still valid and cannot be changed without consent: in this case, you are still contracted with the same entity, it's just that the entity itself has different owners behind it.
But if the group was some other structure (not an LLC or a corporation), or it was an LLC or corporation but the LLC or corporation itself was not purchased (e.g. they bought its assets, including patient list, equipment, etc. but not the entity), then what in essence happened is that the 1st group ceased to operate or exist, someone else took over everything it owned, and that 2nd group also hired the 1st group's staff. In this case, since you are working for someone new, the contract you had with the 1st group does not bind your new employer.
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