Employment in Intellectual Property and Technology

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Employment issues in IP and technology deals: we handle workforce diligence, employee transitions, benefit plan questions, and post-closing integration so labor risk does not derail your acquisition or its value.

When you buy or sell a company, you buy or sell its people, its pay practices, and its liabilities. We advise on the employment side of mergers, acquisitions, and other corporate transactions, from workforce diligence through closing and integration, so labor and benefits issues are priced into the deal instead of surfacing after you sign. For technology targets, we pay close attention to who owns the IP your new team built.

Workforce Due Diligence

We review the target's employment practices for the problems that move price: misclassified contractors, off-the-clock and overtime exposure, pending charges and lawsuits, restrictive covenants that may not be enforceable, and benefit plans with hidden funding gaps. For IP and technology deals, we confirm that invention assignment and confidentiality agreements are in place so the workforce actually transfers the rights the buyer is paying for.

Employee Transitions

Closing a deal means deciding who stays, who goes, and on what terms. We structure employee transitions including offer letters, transition and retention agreements, and the treatment of accrued benefits and equity. In asset deals we handle the mechanics of terminating and rehiring, and we flag any successor-liability and notice obligations so the change in employer does not generate a wave of claims.

Benefit Plan Matters

Benefit plans carry liabilities that follow the assets, and ERISA does not forgive surprises. We assess retirement and health plans, COBRA continuation, multiemployer plan withdrawal exposure, and parachute and deferred-compensation issues under Sections 280G and 409A. We help you decide whether to assume, terminate, or merge plans, and we draft the representations and indemnities that put the risk where it belongs in the purchase agreement.

Post-Closing Integration

The deal does not end at signing; integrating two workforces is where value is kept or lost. We help harmonize compensation structures, consolidate handbooks and policies, align restrictive covenants across the combined company, and resolve the inevitable conflicts between two sets of pay and leave practices. We keep an eye on retention so the engineers and key contributors you acquired are still there a year later.

Frequently asked questions

The big ones are unfunded or underfunded benefit plan liabilities, change-in-control payouts that trigger on closing, and the work of integrating two workforces and policy sets. You also have to plan retention of key people and, if you're cutting headcount, comply with the WARN Act's notice rules. Sorting these out before signing keeps labor risk from eroding the deal's value.

Decide who gets offers, on what terms, and how their benefits carry over, then figure out severance for anyone you're not keeping. Check whether existing restrictive covenants are still enforceable after the transfer, plan the payroll and HR system cutover, and communicate clearly so people don't leave in the uncertainty. A few weeks of transition planning prevents most of the post-closing turnover.

Review pending or threatened employment lawsuits, wage-and-hour and employee-classification practices, and how benefit plans are funded and administered. Also pull union agreements, executive compensation arrangements, and the existing non-compete and confidentiality agreements. These items tell you where the hidden liabilities and retention risks are before you commit.

Use stay bonuses, equity rollover, enhanced severance, or new employment and retention agreements that vest if the person stays through integration milestones. Tie the money to the dates and outcomes you actually care about. The goal is to give the people you can't lose a concrete reason to stay through the transition.

It depends on the structure. In an asset purchase you can pick which plans to assume; in a stock purchase the plans come with the company. Watch for COBRA obligations, whether to merge or terminate the 401(k), and how to keep health and welfare coverage running without gaps during the handoff.

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