Blachana, LLC v. Bureau of Labor and Industries

The administrative interpretation of "successor to the business of any employer" under the definition "employer" within ORS 652.310(1) should be interpreted as a party that has assumed or conferred upon it the legal rights and obligations of the predecessor.

Blachana appealed for judicial review of the Bureau of Labor and Industry's (BOLI) decision, which affirmatively concluded Blachana's liability for wages owed to employees of the previous employer. ORS 652.310(1) includes an "employer" as "any successor to the business of any employer". BOLI concluded that Blachana is an employer, thus liable for wages owed, due to use of a similar business name, use of the same beer vendor, use of the same location and equipment, and similar services offered. The Court of Appeals ruled that, while BOLI as an administrative agency may interpret the statutory meaning behind the clause, the meaning of a successor within the statute is a party that has assumed or conferred upon it the legal rights and obligations of the predecessor. Thus, Blachana was not liable for the wages owed or the penalty imposed by BOLI. Reversed and Remanded.