change in ownership..employment contract still valid?

[gunnyhiway]

about 12 years ago my partner and I sold our business to a guy. Part of the deal was I went to work for him. He gave me a couple nice incentives in my employment contract. Now the old man sold it to his kids..they haven't changed the name or anything. legally are they bound to my contract? They haven't changed anything yet but said "we are letting you keep your car allowance" like they were doing me a favor or weren't bound by the original agreement...

reason I ask is I've got increased travel due to a restructuring and they think I should pay for my meals out of my car allowance.

 

[FSUdawg]

I would think it depends on the terms of the contract. There might be a clause that the contract remains in full effect in case of a sale, or there may be a clause in the contract which states it is not transferable in the event of a sale of the company. If there is nothing in the contract stipulating actions in the event of a sale, I would think the contract would remain in force "as is" unless changes are agreed upon by both parties.

A. State law may say differently.
B. I am not an attorney, just tossing out thoughts from my past experiences as a business owner.

 

[Semiologist]

Is "car allowance" a per diem? A mileage reimbursement based on a set rate?

 

[OrlandNole]

It depends on the terms of the contract, the structure of the business (S-corp, C-corp, LLC, etc.) and the nature of the buyout - did they buy the business outright or just the assets?

It sounds like the new owners don't want to abide by the terms of the contract (assuming it's still valid). Increased travel = increased expenses. It's standard practice to reimburse for meals while on company travel.

 

[Gonolz]

By chance, have you been in this job 30 years?

 

[Formerly Rockymtnole]

I doubt the sale you describe had any effect on your contract. More important question is what's the term of your employment contract and what kind of termination rights the company has. Guessing there was an initial term and it just renews each year. Even if you have a valid contract now the sons might just decline to renew at the end of the current term and instead offer you a new deal on less favorable terms.

 

[anolesfan77]

By chance, have you been in this job 30 years?