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HomePublic Utilities CodeDiv. 11.5Ch. 5Art. 3§ 125540 Employee Rights After Utility Acquisition

§ 125540 Employee Rights After Utility Acquisition

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

§ 125540 Employee Rights After Utility Acquisition

Key Takeaways

  • •If the district buys a utility company (like water or electricity), they must hire the workers who have been there for at least 75 days.
  • •These workers keep their same pay, vacation, sick days, and other benefits—they don’t get worse.
  • •The district must follow any existing work contracts the utility had with its employees.
  • •This rule only applies to workers the district chooses to keep, like bosses or managers.

Example

A city buys a private water company to run it themselves.

The city must hire all the water company workers who have been there for more than 75 days. These workers keep their same pay, vacation time, and sick days. The city also has to follow the old work rules from the water company’s contracts.

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

Official Source
View on CA.gov

§ 125540 Employee Rights After Utility Acquisition

Whenever the district acquires existing facilities from a publicly or privately owned utility, either in proceedings by eminent domain or otherwise, to the extent necessary for operation of facilities, all of the employees of the utility whose duties pertain to the facilities acquired who have been employed by the utility 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 acquired public utility. No employee of any acquired public utility shall suffer any worsening of wages, seniority, pension, vacation, or other benefits by reason of the acquisition. Whenever the district acquires existing facilities from a publicly or privately owned utility, either in proceedings in eminent domain or otherwise, the district shall assume and observe all existing labor contracts. The provisions of this section shall apply only to those officers or supervisory employees of the acquired utility as shall be designated by the district. (Amended by Stats. 2005, Ch. 150, Sec. 32. Effective January 1, 2006.)

Last verified: January 23, 2026

Key Terms

districtpublicly or privately owned utilityeminent domaincomparable positionssick leaveseniorityvacation creditslabor contractsofficers or supervisory employees

Related Statutes

  • § 105160 Employee Protection In Acquisitions
  • § 103420 Utility Employee Transition Rights
  • § 100350 Vta Employee Transfer Rights
  • § 120520 Employee Transition Protections
  • § 28852 Public Utility Employee Transfers

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 125540.
View Official Source