Garden Grove, CA asked in Employment Law for California

Q: Change in ownership, can my former employer force me to work for new employer?

I wish to quit once the change in ownership takes into effect in about 1 month (July 1st 2021), but my soon-to-be former employer uses our "3-month notice" contract phrase to make me stay for the full 3 months before quitting, which I will be with the new employer for almost 2 months. I believe the "3-month notice" contract is only in effect with the former employment. The soon-to-be former employer has a Corporate company name but only 1 practicing office under it. Now she's retiring and selling that 1 office, but states that I'm still held under her Corporate contract for that 3-month notice. Is she right?

Related Topics:
1 Lawyer Answer
Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: Unfortunately it is impossible to tell you if you are bound by the contract or not. It really depends on how the new owner of the company has taken ownership. If the new owner purchased all of the stock of the company, then it is still the same company but under different ownership. If instead the new owner only purchased assets and goodwill, and then formed a new company or used an existing company the new owner had, then it is a different company.

That said, a three month notice provision, while enforceable, is almost never enforced. Unless your resignation causes actual injury to the company, such as the inability to timely complete a customer contract, or something similar, there is little financial incentive to carry out expensive litigation.

Before you make a decision to go that way, it would be smart for you to locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options. I would suggest you look either on this site in the Find a Lawyer section, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers.

Good luck to you.

1 user found this answer helpful

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.