Disastrous Business Bill One Step Closer to Passage
From NFIB Hawaii
House Bill 634, which would require the purchase of a company to hire 100 percent of the seller’s employees, is now in a conference committee and one step closer to passage.
Although subject to certain restrictions, the bill, if passed, would potentially make it more difficult for businesses to be sold. It could result in the shutdown, rather than sale, of financially troubled companies. Even for businesses that are not on the sales block, the measure could have the unintended effect of diminishing the company's value, which is calculated in part on what a willing buyer would pay.
The current version of the measure excludes companies with fewer than 100 employees. "This is a good start to lessening the potentially bad effect of the bill," said Melissa Pavlicek, NFIB/Hawaii state director. "But the bottom line is that requiring purchasers to hire certain employees -- and all of them -- doesn't promote job security at all." NFIB/Hawaii opposed this measure.