Do private settlement agreements get reassigned when a company is sold?

UPDATED: Oct 1, 2022

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Do private settlement agreements get reassigned when a company is sold?

I entered into a settlement with my Oregon employer over a
discriminatory demotion. In the agreement a no rehire to the
position was included. The company was recently sold and I
still remain an employee with the new owners. Is the agreement
void or am I still bound to the terms which were made with the
previous company?

Asked on January 12, 2018 under Employment Labor Law, Oregon


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If the employer was an LLC or corporation and you made the agreement with the LLC or corporation *and* the LLC or corporation was itself purchased, the agreement in still in place because it is still with the same entity--just that the entity now has a different owner.
If made with an LLC or corporation but the buyer did not buy the LLC or corporation but simply bought the name and assets, hired the staff, and starting running the business, the agreement would not automatically still be in place: the agreement made with a different entity than the one you are now working for, and the new entity is not bound by what the old entity agreed to.
If the employer had been a person (e.g. a sole proprietorship) and the agreement was with that person, then again, the new employer, even if they bought the assets and files and customer list, etc. from the old employer and hired all the staff, is not bound by the agreement--again, the agreement was with a different person than the person or entity for whom you are now working.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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