Employer leased space and sold employees to new company

[mpiloti]

My current employer leased space in our building and "sold" the employees in my entire department to another company recently and we were told they would be making us all offers. My current employer is offering a "retention bonus" if we continue to work until the new company takes over, otherwise we get no severance package if we leave earlier. The other company came in with paperwork that had our current salaries written on it, and made an offer to each of us.

None of us signed anything allowing the other company, or our current employer, to allow them to communicate our personal financial information. (i.e. salary and elected benefits) The new company were also notified that each of us would be getting the bonus if we stay until they take over.
Are they allowed to view this information without our consent? It's not like my currently employer is being bought out, they are leasing the space and eliminating all of our positions within their organization.

 

[ShyCat]

This site is for U.S. law only.

 

[sandyclaus]

My current employer leased space in our building and "sold" the employees in my entire department to another company recently and we were told they would be making us all offers. My current employer is offering a "retention bonus" if we continue to work until the new company takes over, otherwise we get no severance package if we leave earlier. The other company came in with paperwork that had our current salaries written on it, and made an offer to each of us.

None of us signed anything allowing the other company, or our current employer, to allow them to communicate our personal financial information. (i.e. salary and elected benefits) The new company were also notified that each of us would be getting the bonus if we stay until they take over.
Are they allowed to view this information without our consent? It's not like my currently employer is being bought out, they are leasing the space and eliminating all of our positions within their organization.

I suppose you could protest this and just lose your job when the new company takes over the existing company space.

As you say, your jobs would otherwise be eliminated. I think that transitioning you as employees from one company to the new one is actually a good thing, as long as you would be performing essentially the same job for the same amount of money or better.

I seriously don't see a problem here - unless you would prefer to lose your job and have to re-interview and fight to justify your current salary to a different employer altogether.

Maybe it's just me, but I would see the proposed transition to the new employer as a plus. No downtime, no period of unemployment, no having to go searching for a new job when your current employer leaves. Seems to me a win-win.

 

[eerelations]

This happens all the time and is perfectly legal in Canada and the US.

 

[cbg]

Are they allowed to view this information without our consent?

Yes.

 

[mpiloti]

Thank you for all the replies, they were very helpful

 

[Beth3]

Would you buy a company without having any idea what the labor costs were (wages, cost of benefits, etc.?) You'd be very foolish if you did.

Of course the company making the purchase can see this information - the employees' approval is not necessary. Despite the sale, you and your co-workers remain "employees at will" and can quit your jobs and accept another any time you like.

 

[xylene]

Despite the sale, you and your co-workers remain "employees at will" and can quit your jobs and accept another any time you like.

And you are entitled to the wages and benefits of your position until such time as that position changes.

You are being offered a transition bonus.

This is a very good thing.

Your 'personal financial information' is not a secret within your company or between companies in an acquisition.

 

[Beth3]

And you are entitled to the wages and benefits of your position until such time as that position changes. Um, not exactly. Either the current owner or new owner can eliminate benefits and reduce wages any time they wish. Of course it's unlikely that will happen but the employees in question aren't entitled to anything more than minimum wage...

 

[antrc170]

And you are entitled to the wages and benefits of your position until such time as that position changes. Um, not exactly. Either the current owner or new owner can eliminate benefits and reduce wages any time they wish. Of course it's unlikely that will happen but the employees in question aren't entitled to anything more than minimum wage...

Benefits may be reduced depending on the wording of the offer, but the offer with a salary creates an implied contract between the employer and employee. The salary cannot be reduced without changing the position.

 

[Beth3]

but the offer with a salary creates an implied contract between the employer and employee. The salary cannot be reduced without changing the position.

You're mistaken. These are all at-will employees; their wages can be reduced any time the employer decides, as long as notice is provided of the wage change prior to the employees working any hours at the reduced rate.

 

[xylene]

And you are entitled to the wages and benefits of your position until such time as that position changes. Um, not exactly. Either the current owner or new owner can eliminate benefits and reduce wages any time they wish. Of course it's unlikely that will happen but the employees in question aren't entitled to anything more than minimum wage...

The current employer can reduce wages with notice.

As to benefits that will depend on contracts with the vendor providing them, although it is of course possible they are self insured.

The new owner can't do anything until these employees are working for them. Depending on how this ownership transfer works out that could be a totally new employee / employer relationship.

The employees are entitled to their wages for the hours worked at the compensation agreed upon, whether employer old or new pays them.

 

[cbg]

With respect, at least in the US (don't know about Canada) the requirement that an employer provide advance notice of a reduction in wages is NOT a Federal law, but a state law, and it does not apply in all states. Without knowing what state the poster is in (at this point, we don't even know for sure if he is in the US) we can't say with certainty that notice is required.

 

[ecmst12]

Your salary and benefits package is not private or protected info.