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Dodging US employment law violations during international mergers and acquisitions

Thomas Stromberg (tstromberg@perkinscoie.com) is partner in Perkins Coie’s Mergers & Acquisitions practice group, and Javier Garcia (jgarcia@perkinscoie.com) is partner in Perkins Coie’s Labor & Employment practice group, both based in Los Angeles, California, USA.

Every buyer of a US business needs to think about how it will operate the business after an acquisition and how to avoid existing and future liabilities resulting from operations. Some operational challenges are evident, while others are not as obvious. One challenge that our non-US clients spend time and resources overcoming is complying with applicable employment laws and regulations while maintaining a productive and effective workforce. US employment laws vary from state to state and are often very different from the laws of the countries in which non-US buyers operate. This challenge needs to be identified and managed when executing the acquisition of a US business or a business that maintains a workforce in the United States.

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