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General Laws

Section 20E. No business combination transaction shall result in the termination or impairment of the provisions of any labor contract covering persons engaged in employment in the commonwealth negotiated by a labor organization or by a collective bargaining agent or other representative. Notwithstanding such business combination transaction, such labor contract shall continue in effect until its termination date or until otherwise agreed upon by the parties to such contract or their successors.

As used in this section, the following words, unless the context clearly requires otherwise, shall have the following meanings:—

“Business combination transaction”, any merger or consolidation, sale, lease, exchange or other disposition, in one transaction or a series of transactions, whether of all or substantially all the property and assets, including its good will, of the business operations that are the subject of the labor contract referred to in the first paragraph or any transfer of a controlling interest in such business operations;

“Employment”, an individual’s entire service, performed within and without the commonwealth, if the service is localized in the commonwealth. Service shall be deemed to be localized in the commonwealth if: (i) the service is performed entirely within the commonwealth; or (ii) the service is performed both within and without the commonwealth but the service performed without the commonwealth is incidental to the individual’s service within the commonwealth, as where such service is temporary or transitory in nature or consists of isolated transactions.

Employment shall include an individual’s service, performed within and without the commonwealth, if the service is not localized in any state, but some of the service is performed in the commonwealth; and (i) the individual’s base of operations is in the commonwealth; or (ii) if there is no base of operations, then the place for which such service is directed or controlled is in the commonwealth; or (iii) the individual’s base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in the commonwealth.

In the event that an employee is denied or fails to receive wages, benefits or wage supplements as a result of a violation of this section, such employee shall have available, in addition to private civil and other remedies available at law or equity, the remedies under the provisions of sections one hundred and forty-eight to one hundred and fifty, inclusive, of chapter one hundred and forty-nine. The department or the attorney general may take any and all appropriate action to enforce the provisions of this section including, but not limited to, injunctions, cease and desist orders and penalties provided for in sections one hundred and forty-eight to one hundred and fifty, inclusive.

Recovery pursuant to a violation of this section shall be applicable to secure recovery against the merged, consolidated or resulting corporation or other successor employer, notwithstanding the provisions of this section or any other general or special law to the contrary.

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