In the new issue of Take 5, our colleagues examine important and evolving issues confronting owners, operators, and employers in the hospitality industry:
- Avoiding “Perfectly Clear” Successor Status When Acquiring a Property with a Union Workforce Now Requires Greater Vigilance
- Restaurant Manager Misclassification Complaints Highlight Important Defense Strategies for Hospitality Owner/Operators
- Buyer Beware: Purchasing Assets from a Unionized Employer May Come with a Nasty Withdrawal Liability Surprise
Most unionized hospitality employers have collective bargaining agreements which require contributions to multiemployer pension funds. In recent years, many of these pension funds have slipped into “endangered” or even “critical” status, and employers who have exited these funds have been hit with substantial assessments of withdrawal liability. These assessments often amount to millions of dollars in withdrawal liability.
Many employers are unfamiliar with the complicated procedures for contesting an assessment of withdrawal liability from a multiemployer ...
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