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.

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Terms Used In California Labor Code 1434

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Director: means Director of Industrial Relations. See California Labor Code 20
  • Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Labor Code 18

(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.

(Amended by Stats. 2019, Ch. 24, Sec. 32. (SB 83) Effective June 27, 2019.)