Blog Post

Aug 11, 2016

Blurred Lines: Under New “Perfectly Clear” Standard, NLRB Finds that Seller’s Conduct Prohibits Asset Purchaser from Setting Initial Terms

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Seyfarth Synopsis: In yet another pro-union, results-driven decision, the NLRB announces a new approach to evaluating whether an asset purchaser has forfeited its right to set initial terms and conditions when offering employment to a seller’s employees.
 
In Nexeo Solutions, LLC, 364 NLRB No. 44 (July 18, 2016), a split panel of the NLRB found that Nexeo Solutions lost its right to set initial terms and conditions of employment for the employees of Ashland Distribution’s Fairfield, California facility, which Nexeo acquired in an asset purchase.  The employees were drivers, material handlers, and warehouse employees who had been represented by the Teamsters for approximately 18 years.
 
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