Cal. Lab. Code § 1434

Current through the 2023 Legislative Session.
Section 1434 - Liability of successor employer

A successor employer is liable for any wages, damages, and penalties its predecessor employer owes to any of the predecessor employer's former workforce if the successor employer meets any of the following criteria:

(a) Uses substantially the same workforce to offer substantially the same services as the predecessor employer. This factor does not apply to employers who maintain the same workforce pursuant to Chapter 4.5 (commencing with Section 1060) of Part 3.
(b) Shares in the ownership, management, control of the labor relations, or interrelations of business operations with the predecessor employer.
(c) Employs in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected workforce of the predecessor employer.
(d) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer of any person who had a financial interest in the predecessor employer.

Ca. Lab. Code § 1434

Amended by Stats 2019 ch 24 (SB 83),s 32, eff. 6/27/2019.
Added by Stats 2016 ch 373 (AB 1978),s 1, eff. 1/1/2017.