§ 28-7-19.1 - Mergers and consolidations of companies.
SECTION 28-7-19.1
§ 28-7-19.1 Mergers and consolidations ofcompanies. – (a) No business combination transaction shall result in the termination orimpairment of the provisions of any labor contract covering persons engaged inemployment in the state negotiated by a labor organization or by a collectivebargaining agent or other representative. Notwithstanding a businesscombination transaction, the labor contract shall continue in effect until itstermination date or until otherwise agreed by the parties to the contract ortheir legal successors.
(b) As used in this section, the following words, unless thecontext clearly required otherwise, have the following meanings:
(1) "Business combination transaction" means any merger orconsolidation, any sale, lease, exchange, or other disposition, in onetransaction or a series of transactions, whether of all or substantially allthe property and assets, including its good will, of the business operationsthat are the subject of the labor contract referred to in subsection (a) ofthis section or any transfer of a controlling interest in the businessoperations;
(2) "Employment" means an individual's entire service, if theservice is localized in the state. Service is deemed to be localized in thestate if:
(A) The service is performed entirely within the state; or
(B) The service is performed both within and without thestate but the service performed without the state is incidental to theindividual's service within the state;
(ii) Employment shall include an individual's service,performed within and without the state, if the service is not localized in anystate, but some of the service is performed in the state; and
(B) The individual's base of operation is in the state; or
(C) If there is no base operations, then the place for whichthe service is directed or controlled is in the state; or
(D) The individual's base of operations or place from whichthe service is directed or controlled is not in any state in which some part ofthe service is performed, but the individual's residence is in the state.
(c) In the event that any employee is denied or fails toreceive wage, benefits, or wage supplements as a result of a violation of thissection, the employee shall have available civil and other remedies availableat law or equity. The department of labor and training may take any and allappropriate actions to enforce the provisions of this section, including, butnot limited to, injunctions, cease and desist orders, and other penaltiesprovided by law.
(d) Recovery pursuant to a violation of this section shall beapplicable to secure recovery against the merged, consolidated, or resultingcorporation or other successor employer, notwithstanding anything contained inthis section or elsewhere to the contrary.
(e) This section is enacted in order to protect theemployment interests of all persons engaged in employment in the state underexisting labor contracts and shall be liberally construed in every case inorder to achieve that purpose.