A successor employer inherits the predecessor's contractual duty to arbitrate as long as there is substantial continuity between the old and the new companies.

Question

Quizplus · Accepted Answer

This is because of the concept of successorship in the context of labor law. When a new employer takes over the operations of a previous employer, the new employer is considered a successor and inherits certain legal obligations, including the duty to arbitrate if it was included in the predecessor's contracts. The level of continuity required for this duty to be inherited varies depending on the circumstances of the case, but generally, there must be a substantial similarity between the old and new employers' business operations, workforce, and management.

A Successor Employer Inherits the Predecessor's Contractual Duty to Arbitrate