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HomePublic Utilities CodeDiv. 11Ch. 5Art. 2§ 120520 Employee Transition Protections

§ 120520 Employee Transition Protections

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 120520 Employee Transition Protections

Key Takeaways

  • •If the government takes over a company's facilities (like water or power plants) and shuts down the company, they must hire the company's workers who have been there for at least 75 days.
  • •These workers keep their same pay, sick leave, vacation, and other benefits—they can’t get worse after the takeover.
  • •The government must follow any existing work contracts the company had with its workers.
  • •This rule only applies to workers the government picks, like managers or supervisors.

Example

The government takes over a private water company and shuts it down.

If you worked at the water company for more than 75 days, the government must give you a job with the same pay and benefits. They can’t cut your vacation time or lower your wages just because they’re in charge now.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 120520 Employee Transition Protections

Whenever the board acquires ownership of existing facilities from a privately or publicly owned corporation or utility, either in proceedings by eminent domain or otherwise and terminates the legal existence of the corporation or utility, and operates the facilities itself, to the extent necessary for operation of facilities, any of the employees whose duties pertain to the facilities acquired who have been employed by the corporation or utility, as the case may be, for at least 75 days shall be appointed to comparable positions by the board without examination. These employees shall be given sick leave, seniority, and vacation credits in accordance with the records of the corporation or other acquired utility, as the case may be. No employee of the former corporation or utility shall suffer any worsening of wages, seniority, pension, vacation, or other benefits as they exist at the time of and by reason of the acquisition. The board shall assume and observe all existing labor contracts of the former corporation or utility, as the case may be, insofar as they relate to the acquired facilities. This section applies only to those officers or supervisory employees of the former corporation or utility, as the case may be, as shall be designated by the board. (Amended by Stats. 1985, Ch. 1576, Sec. 19.)

Last verified: January 23, 2026

Key Terms

boardfacilitiesemployeescomparable positionssick leaveseniorityvacation creditslabor contracts

Related Statutes

  • § 100350 Vta Employee Transfer Rights
  • § 125540 Employee Rights After Utility Acquisition
  • § 105160 Employee Protection In Acquisitions
  • § 30752 Public Utility Employee Transfers
  • § 103420 Utility Employee Transition Rights

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 120520.
View Official Source