Posted on 07/19/2011 9:40:09 AM PDT by Nachum
California cities can protect workers from being fired immediately when their company changes owners, the state Supreme Court ruled Monday.The 6-1 decision reinstated a Los Angeles ordinance, struck down by lower courts, that required supermarkets to keep their workforce for 90 days after a new owner takes over. Similar laws covering different industries are in effect in other cities - including Oakland, San Jose, Berkeley and Emeryville - and the state also has a law protecting janitors who work for building contractors. "When you're keeping a business open and all you're doing is changing the name
(Excerpt) Read more at sfgate.com ...
next will be a ban on companies being able to move away...
Mike
Good luck finding a buyer for your business there.
In-f-ing-sane.
The courts are completely out of control.
Escape California while you can.
That whooshing sound is from yet more companies moving out of California.
Actually, what this law does is make the companies unsalable. If they were making money, most likely, they wouldn’t be up for sale. Somebody who buys them typically makes a pitch to their creditors about how they can repay the creditor’s investment. This law limits what the new buyer can do and forces the new buyer to continue operating a business that he most likely bought for other reasons; developing the land, for example.
This means that the companies for sale will still go out of business, but the company owners can’t salvage anything from the loss.
Oh oh: after securing control of businesses the next thing fascist governmentss do is conquer their neighbors!
I can't imagine *why* businesses would be fleeing California. So, how many grocery stores will go dark rather than a new owner step up and purchase them? What IS it about natural consequences that these silly people don't understand?
This won't kill every deal, but it will make a bunch more difficult. Just a little more sand in the gears of commerce.
10-289
Simplistically, this means the bid for any Kali business will be reduced by the value of the unwanted labor expense.
“Good luck finding a buyer for your business there.”
Yep. I think all this will do is either encourage more bankruptcies of businesses, or alternatively, if new owners do buy businesses, they will simply lay off even more people after the 90 day period in order to make up for the increase in expenses during that time.
It also makes the state hostile to new investment. And by raising property taxes, imprisoning property owners who are upside down on house values. They are making it to where you can't leave. It reminds one of the song "Hotel California". You can check out (die) but you can never leave.
or close
I have the greatest of admiration for any business still afloat in the Peoples Republic of California.
What is to prevent company ‘A’ from firing everyone, moments before selling their business to company ‘B’?
I must have missed something. What is that?
F that.
If I do an M&A I will absolutely get rid of dead weight,
Further, I make decisions that have financial and cultural impact to my organizations.
No one has the right to tell me to keep anyone for any reason.
I won’t drive a full bus over the cliff to save a few people.
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