What happens when a company purchases all the assets and liabilities of its predecessor? Does it thereby acquire the right to enforce a mandatory arbitration agreement the predecessor had with its employees?

This question was considered recently in Garza v. Ayvaz Pizza, (Ayvaz) 2023 WL 6518092 (S.D. Texas, 10/5/ 23). There, the class action complaint alleged that the successor company violated the Fair Labor Standards Act by failing to correctly reimburse the costs of employees who used their vehicles on the job.

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