In an attempt to prevent the problems created by a plant closure, many states have enacted employee ownership assistance acts (EOAAs) to assist the transfer of ownership of the enterprise to the employees and thus avoid a plant closure. This Note analyzes the benefits and limitations of several recently enacted EOAAs and discusses whether they respond adequately to the plant closure problem. The Note concludes that this legislation is vital to the buyout process. EOAAs, however, cannot effectively encourage employee buyouts unless they contain adequate implementation guidelines and notification requirements. Finally, the Note suggests how such legislation could be improved to encourage more effectively employee buyouts of a closing plant.
Virginia L. Duquet,
Advatages and Limitations of Current Employee Ownership Assistance Acts to Workers Facing a Plant Closure,
36 Hastings L.J. 93
Available at: https://repository.uchastings.edu/hastings_law_journal/vol36/iss1/2