A successor employer is liable for any wages and penalties its predecessor employer owes to any of the predecessor employer’s former employee or employees, 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 employees 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.
(Added by Stats. 2016, Ch. 373, Sec. 1. (AB 1978) Effective January 1, 2017.)
Last modified: October 25, 2018