When another organization acquires your company, it can be a challenging and uncertain time for employees. While it can be an opportunity for career growth, many questions arise about job status, new expectations and compensation. Understanding your legal rights during this period is crucial, and a skilled employment lawyer can be your most valuable asset. Below is a guide to help you navigate the transition and protect your legal interests.
Common Legal Issues for Employees During an Acquisition
Change will occur when your company is acquired. While things will not remain the same, you can learn to embrace change. Still, consider the following potential issues to prepare for the shift.
Wrongful Termination and Discriminatory Layoffs
When companies merge, some jobs become obsolete, and certain teams do not receive funding. This causes managers to lay off employees, sometimes on a large scale. While layoffs can be a legal part of a merger, they must not be discriminatory in nature. A new employer cannot use an acquisition as a cover to terminate employees based on age, race, gender, religion or disability.
Large-scale layoffs could also trigger obligations imposed under the federal WARN Act, which mandates a 60-day notice for affected employees. Termination without proper notice or for discriminatory reasons may be unlawful. Some businesses offer new retirement plans or shorter, less frequent shifts as alternatives, so discover what options your company is considering.
Changes to Compensation, Employment Contracts and Benefits
Typically, an acquisition brings about transformation in the areas of remuneration, medical insurance and vacations. However, when it comes to a particular job contract that ensures a certain amount of money, a certain bonus or a certain set of benefits, the new organization might have no choice but to accept it. To modify the terms of the agreement without the other party’s consent could be a violation of the contract.
You may also be asked to sign a new employment agreement. Before signing, having an expert review the document is critical. An experienced legal team, like the one at Weisberg Cummings, P.C., specializes in reviewing and negotiating employment contracts and severance agreements to ensure your compensation is protected.
How to Survive the Transition?
If you possess sufficient knowledge, you can get through the acquisition of your company without being affected negatively. Though it is a difficult and challenging period, it is still a rare occasion for personal and professional development. Below is a helpful guide to ensure you thrive.
Acknowledge Anxiety
It is essential to acknowledge the anxiety that comes during this transition. You may feel guilty when the company lays off your colleagues or feel uncertain about your job security. This can harm your work performance if you let it persist. Recognize the feeling, and work on the things that you can take control over. Ask managers for support and maintain a healthy work-life balance during this stressful period.
Do Your Research
It is necessary to do a thorough research on the company that acquires. Find out the reasons for merging the two companies. The merger could be due to financial or strategic motives. Explore the new organization’s design and check how it relates to your current company’s structure. Analyze your position and determine whether there is an identical or a supportive role in the other firm.
Know Your Legal Rights
There are employment contracts that define employee rights in the light of federal and every state’s employment laws. It is crucial to understand what you are owed regarding severance pay, benefits continuation, and the terms of any non-compete or non-disclosure agreements you may have signed.
Because Pennsylvania is an at-will employment state, navigating these rights can be complex. Consulting with an employment law firm with a deep understanding of Pennsylvania law, such as Weisberg Cummings, P.C., is the most effective way to protect yourself.
Demonstrate Value
A merger is an ideal opportunity to showcase your value as an employee. You have new people to impress as the company’s managers and executives evaluate each role. Volunteer for the merger committee if one exists. Work hard on projects to showcase your abilities. Actively learn new software and platforms to demonstrate your capacity for change. The attorneys at Weisberg Cummings, P.C., understand employees’ value and how to reflect that during a legal situation.
Create a Plan
Disorganization often occurs as programs and teams clash. Navigate this by creating your own plan to get through the initial transition period. Listen to different people and determine the general tone of the new work environment. Try to contribute to small wins or positive integration tactics. Use your personal projects to reflect your potential for new leadership.
Decide Your Future
Be willing to network with people from the other company, specifically any of your counterparts. Create meaningful connections to help your future at the organization. Understand your new compensation packages and accompanying benefits. The attorneys at Weisberg Cummings, P.C., ensure you get the perks you deserve.
Put Yourself First
Determine your own needs and goals and see if they align with the new company. Discover what you liked about your old workplace and observe whether those positive attributes remain or diminish.
If factors like location, office environment and values are shifting, you should know what is nonnegotiable for you as an employee. If the company no longer has growth opportunities and does not align with your goals, then leaving may be the best option.
Where Can You Find an Employment Lawyer in Harrisburg?
Harrisburg, Pennsylvania, residents can find a reputable employment lawyer at Weisberg Cummings, P.C. The firm’s attorneys protect employees’ rights against discrimination, wage issues and harassment, provide realistic counsel, and act with respect and integrity.
Practice areas include severance issues, employment discrimination, contracts, employment claims and sexual harassment. The firm has settled 1,151 cases and earned $55,913,026 in settlements and judgments. Its partners have 15 or more years of legal experience. With a deep understanding of Pennsylvania law, the attorneys provide services throughout the state and in class-action lawsuits nationwide. Attorneys are accessible at all hours.
Navigating Your Company’s Acquisition
Do not let uncertainty keep you from engaging with your new workplace. Working with a well-regarded employer lawyer with a consistent track record of success can help protect your rights while allowing you to embrace the changes. View a merger as an opportunity for professional growth while remaining realistic about your values and needs.
