Can a company that was sold renege on a severance agreement if I work for the company that bought my old employer?

The purchase agreement of the company that bought your old employer should disclose whether liabilities such as you severance were part of the transaction. It may well have been that the new company purchased assets or clients but no liabilities of the old firm. Many of my colleagues are in Harrisburg and Philadelphia and could likely provide further guidance.

As you state the facts, it appears that your old employer is still in existence. More often then not, as noted by the first responder, a company buys the stock of a company (less preferred, but happens in mergers) or buys some or all of the assets of the selling company. It sounds as if in your case your new employer bought a subdivision or a portion of the assets. Your severance agreement should have been clearer - poor draftsmanship if it is silent, but the purchase agreement, which you have not seen, may, as my colleague indicates, indicate that the buyer/your new employer, assumes the liability. In many cases, severance is paid to settle all potential claims, including age discrimination, as well as to say thank you for your former services, but as you were hired by the purchaser to perform your former duties (even though at a lower pay), your rehire terminates your former severance. You are trying to get two bites out of the same apple, although if you went to work for another company or in a different industry, the severance would still be owed. Have your agreement reviewed by local counsel, to see if in fact being rehired terminates your right to the severance, and that attorney can ask to see the appropriate provision(s) of the purchase agreement to determine if your severance was assumed by the purchaser. Might your employment agreement have indicated your severance is terminated in light of you being hired? If you believe this is a good answer, please so indicate. I remind you I am NOT admitted to practice in PA and I cannot advise you regarding what a court in PA might decide.

Your entitlement to severance will depend on what the agreement says. It may also depend on whether the new owner agreed to be responsible for the former owner's contractual obligations when it bought the company. If your agreement is silent about what happens if you were hired back by the new owner and the new owner also assumed the former owner's contractual obligations when it bought the company, then it may well be obligated to pay out the severance even though you were hired back. An attorney will need to review your severance agreement and then determine, if you are entitled to the severance, whether the new owner or the former owner is obligated to pay you.