Companies who have bought or are considering buying unionized workplaces should familiarize themselves with a significant decision affecting liability issues made last month by the National Labor Relations Board (NLRB).

The National Labor Relations Board reversed its stance on successor liability for refusal to hire predecessor employees when it unanimously overruled its 2006 decision in Planned Building Services on September 30, 2014. The decision significantly increases the potential damages that could be imposed on a successor employer who fails to hire employees of its predecessor. This includes companies that buy the assets (or stock) of an existing unionized operation.