Am I liable for a workplace safety violation that happened before I bought the business?
It depends on your deal structure. In a share purchase, generally yes — liability connected to a workplace safety violation, including any fines, orders, or ongoing regulatory action, is tied to the corporation, and since you now own it, that exposure continues with the business regardless of when the underlying incident occurred.
In an asset purchase, generally no for the violation itself, since it concerns conduct by the seller as the operator at the time, and a properly structured asset deal should leave that specific liability with the selling entity. What can still affect you, regardless of structure, is whether the underlying safety issue that caused the violation was actually fixed — if the same hazard or practice continues under your ownership, you can face your own, fresh liability for it going forward, entirely separate from whatever the seller was responsible for.
Ask specifically about any past safety violations, orders, or regulator involvement during due diligence, and make sure whatever caused the issue has genuinely been remedied, not just resolved on paper. A Treadstone business lawyer can help review this history and structure appropriate protections.
Key takeaways
- A share purchase generally carries forward liability connected to a past safety violation.
- A properly structured asset purchase can leave that specific past liability with the seller.
- An unfixed underlying hazard can create your own fresh liability, regardless of deal structure.
- Confirm the underlying issue was genuinely remedied, not just administratively closed out.