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Re:X will go to court after failing to pay staff millions in... by MrRadar on Wednesday December 27, 2023 @08:12AM (#38781593)
Verbal contracts are still contracts. The previous management was acting on behalf of a company, so they created the liability for the company. When you acquire a company you acquire all the liabilities and assets of that company, you don't get to pick and choose. Similarly, companies cannot pick and choose which liabilities they have to pay even if they are losing money. If a company genuinely cannot pay a liability they can declare bankruptcy and let the courts sort it out.
Re:X will go to court after failing to pay staff millions in... by Zigurd on Wednesday December 27, 2023 @12:19PM (#38784115)
Not only are verbal agreements enforceable, in many states non-payment of compensation comes under laws especially favorable to workers. Not being dischargeable in bankruptcy and piercing the corporate veil come to mind. In general don't mess around with not paying people for work.