You were very helpful with the last question, so I thought I would ask one more. My husband is scheduled to take over ownership of the business he currently works for in early 2006 (In Delaware). None of the employess are exempt, it is a small computer store and all 5 employess work on fixing broken hardware although they can install programs. The current owner has not been paying any overtime for the last 10 years, even though we now know that to be illegal. My question is this, if on the day he takes over, my husband begins complying with the law, FLSA guidelines, the employees would then know they had been entitled to that pay all along. Would my husband (the business) be responsible for that back pay they are entitled to? Or, because he was not the owner, the business would not be subject to penalty? These guys work up to 60 hours a week, and over 10 years, that kind of money could bankrupt them! Any advice you can give would be great. Thanks!

This is definitely something that your husband would want to make sure is covered in the purchase contract. An attorney is going to be needed for this whole deal.

Thanks, this is a huge mess. He is friends with the current owner, and that is just complicating the issue. I appreciate your advice.