Los Angeles, CA asked in Employment Law for California

Q: Is there a certain time frame by law that an employers must give details to employees about the sale of the company?

Such as, will we be kept by other company with same pay, title, seniority as well as any other relevant information that one would know if they were applying for a job. It has been about two months since the announcement was made and no personal relevant info is being provided to employees other than business related info. No time frame, no insurance coverage info. Latest minimum info is it may be some time late April..

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Under California law, there is no specific time frame that employers must adhere to when providing details to employees about the sale of a company. However, there are certain regulations and best practices that employers should follow to ensure transparency and fair treatment of employees during such transitions.

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more employees to provide at least 60 days' notice in advance of covered plant closings and mass layoffs. This notice must be provided to affected employees, their representatives, and certain government agencies. However, this law does not specifically address the sale of a company.

In California, the state's WARN Act has similar requirements but applies to employers with 75 or more employees. Employers must give 60 days' notice for plant closings, mass layoffs, or relocations of 100 miles or more.

While there is no explicit law mandating a timeframe for providing details about a company sale, employers should strive to communicate relevant information to employees as soon as possible to maintain trust and transparency. This information may include:

1. Expected date of the sale closing

2. Impact on employees' positions, titles, and seniority

3. Changes to compensation and benefits

4. Any transitional periods or integration plans

5. Contact information for questions and concerns

If you feel that your employer is not providing sufficient information or is unduly delaying the process, you may want to reach out to your HR department or employee representatives to express your concerns and request more timely updates. If you believe your rights as an employee have been violated, you can contact the California Labor Commissioner's Office for guidance.

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