Asset Deal with grandfathered service

[Guest Lee68]

If a population of employees were acquired through an asset purchase, and the employees' service with the prior company was grandfathered for eligibility and vesting.....would the original date of hire with the previous employer be used for determining whether the employee falls into the excludable or non-excludable group for non-discrimination testing? My reasoning tells me that due to being an asset deal, the employer has changed, so the new employees would be considered "new employees" even though service is being grandfathered. Thoughts?

[J Simmons]

If the minimum service requirement were being waived for this group, I'd agree with you.

But it is not. Rather, you will be tracking their service from their individual dates of hire with what amounts to a predecessor employer, albeit seller in an asset purchase.