Tuesday, July 11, 2006

Interesting Case on Successors-in-Interest Under FMLA

Scales_3Rosario Vega Lynn of the New Mexico Labor and Employment Law Blog sent this interesting post dealing with a novel issue under federal Family and Medical Leave Act (FMLA) law:

In a case of first impression in any circuit, the Sixth Circuit decided that, under the Family Medical Leave Act (FMLA), whether a company is bound by the FMLA depends on labor law not corporate law.   The Circuit also found it irrelevant (for FMLA purposes) that the purchasing company did not transfer assets or merge with the first company. 

The case is Cobb v. Contract Transport, Inc., No. 05-6196 (6th Cir. June 28, 2006). 

In the case, Contract Transport acquired a federal mail delivery contract after Byrd Trucking lost the contract.  Contract Transport hired many Byrd Trucking drivers but did not acquire Byrd or its assets.  When the employee, Cobb, needed time off from work for a gallbladder operation, Contract Transport terminated him.  The Sixth Circuit reversed the district court's decision to dismiss the case and ruled in favor of the employee.

Fascinating case. Thanks for the heads up, Rosario!



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