On November 15, 2012, NELA filed an amicus brief in the Seventh Circuit Court of Appeals in support of the plaintiffs in Teed v. Thomas & Betts Power Solutions. In this case, NELA filed in support of the plaintiffs’ efforts to preserve a favorable district court ruling on successor liability under the Fair Labor Standards Act (FLSA). Our brief was drafted by David E. Schlesinger and James H. Kaster of Nichols Kaster, PLLP (Minneapolis, MN).
The plaintiffs in this case filed suit against JT Packard & Associates for violations of the FLSA, seeking overtime pay. After the district court conditionally certified the case as a collective action, the defendants sought to stay or dismiss the proceedings because the company had entered receivership proceedings. The company was eventually purchased by Thomas & Betts, which, as part of that purchase, signed an agreement that included reference to an order asserting that the plaintiffs “intend to pursue both lawsuits under a theory of successor liability against defendant’s buyer.” I approving the sale, the state court in Wisconsin affirmed that Thomas & Betts was on notice of the plaintiffs’ claims, but did not by virtue of purchasing JT Packard’s assets automatically become … Read More