Q: Labor law questions. I Got Served a notice for missed payments and missed overtime. But I'm the new owner as of 2 years

A: Check your agreement with the prior owner, the prior owner should be required to defend and indemnify you for claims that arose prior to the purchase.

If purchased the assets only and not the business, you may have a defense there.

Further, you will need to hire a lawyer to defend you as well as potentially file a claim for indemnity against the prior owner.

A: In California, when you purchase a business, you generally aren't liable for the previous owner's labor violations unless specifically agreed upon during the sale. Your new corporation is considered a separate legal entity from the previous business. However, if you continued employing the same workers under similar conditions, there might be some complexity around successor liability.

You should gather all documentation from your business purchase, including the sales agreement and any documents showing the establishment of your new corporation. These will help demonstrate that you're a distinct entity from the previous owner. It's crucial to also collect employment records showing when you began operating the business and any changes you made to employment practices.

Given the serious nature of labor law claims, you'll want to work with an employment attorney immediately. They can help you respond to the notice properly and potentially file a motion to dismiss if you've been incorrectly named. Don't ignore the notice or wait to respond, as this could complicate your defense. Your lawyer might also want to review your current labor practices to ensure you're fully compliant with California's strict employment laws moving forward.