Categories
All Categories
DMV
ServSafe
OSHA
NCLEX
HESI
TEAS
ATI Nursing
CNA & Nurse Aide
NREMT & EMS
ACLS
BLS
CPR
Quizzes
Study Guides
Flashcards
Packages
0
Log In
Register
Categories
All Categories
DMV
ServSafe
OSHA
NCLEX
HESI
TEAS
Quizzes
Study Guides
Flashcards
Packages
Contact
Cart
0
Log In
Register
CHRL Law Practice Exam
Access More Questions
Report question problem
×
I think the answer is wrong
There are multiple correct answers
There is a typing error
Image or comprehension text is not display properly
Something else(please specify below)
Any more information
Under the ESA, if the purchaser employs an employee of the seller after a sale, the sale
results in immediate termination
does not affect employment status
does not result in termination of employment
requires a new contract
Reveal Answer
Correct Answer:
requires a new contract
Explanation:
When ownership of a business changes hands, the employment relationship is with the employer entity, not with the individual owner. If the purchaser hires an employee of the seller after the sale, that creates a new employer–employee relationship under a different legal entity. To formalize this change and ensure the terms of employment (wages, hours, benefits, notice, etc.) are properly set under the new employer, a new contract is typically required. This protects both the employee’s rights under the ESA and the purchaser’s obligations as the new employer. So, even though the employee may continue working after the sale, the formal agreement with the new employer needs to be created to reflect the change in who is responsible for terms and compliance. The other options imply either automatic termination or no change in status, which aren’t the standard approach when a new owner steps in as the employer.
Access more questions from this quiz
Continue to CHRL Law Practice Exam for more practice questions and the full quiz experience.
Access More Questions