Appeals Court Lowers The Bar For Successor FLSA Liability

The Third Circuit joins a number of other circuits in making it easier to invoke successor liability for claims made under the Fair Labor Standards Act. In a wage-and-hour case, the court ruled that the standard for successor liability should be that of federal common law, and not the more stringent standard laid down in state law. This determination, note Foley & Lardner attorneys, adds one more layer of complexity to companies doing due diligence before a merger or acquisition.