Legal Question in Business Law in Massachusetts

Re: layoff before selling business

Assuming the lay-offs comply with both state and federal laws regarding same and that you do not have an employment agreement or stock option issues related to the termination, then no it is not likely you can get anything. Moreover, it may be after paying debts, etc there will not be much left over.

If you were promised something more than the just a paycheck then may be, if it is in writing, you may have a claim against some of the proceeds from the sale of the technology.

Re: layoff before selling business

The company owns the IP if the employees were actually employees (and not independent contractors); absent a contract of employment for a specific term, the employer can terminate employees for any or no reason. The assets of the corporation can be disposed of as the owners wish, and no employee (or former employee) has rights to challenge such disposition. Any distribution to surviving employees is a bonus (presumably to retain them), not a right.

Best wishes,

LDWG