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HomePublic Utilities CodeDiv. 10Pt. 4Ch. 4§ 40123 Public Utility Employee Protections

§ 40123 Public Utility Employee Protections

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

§ 40123 Public Utility Employee Protections

Key Takeaways

  • •If the district buys a public utility (like a water or power company), they must keep all the workers' current contracts and benefits.
  • •Workers keep their sick leave, vacation, seniority, and pension credits just like before.
  • •No worker can lose wages, benefits, or seniority because of the buyout.
  • •The district can also give these same protections to bosses or supervisors if they want.

Example

A city buys a private water company that serves the area.

All the workers at the water company keep their jobs, pay, vacation time, and retirement benefits. Even their bosses can keep their old benefits if the city decides to include them.

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

Official Source
View on CA.gov

§ 40123 Public Utility Employee Protections

Whenever the district acquires existing facilities from a publicly or privately owned public utility, either in proceedings by eminent domain or otherwise, the district shall assume and observe all existing labor contracts. To the extent necessary for operation of facilities, all of the employees of such acquired public utility whose duties pertain to the facilities acquired shall be appointed to comparable positions in the district without examination, subject to all the rights and benefits of this part, and these employees shall be given sick leave, seniority, vacation and pension credits in accordance with the records and labor agreements of the acquired public utility. Members and beneficiaries of any pension or retirement system or other benefits established by that public utility shall continue to have the rights, privileges, benefits, obligations and status with respect to such established system. No employee of any acquired public utility shall suffer any worsening of his wages, seniority, pension, vacation or other benefits by reason of the acquisition. The district may extend the benefits of this section to officers or supervisory employees of the acquired utility. (Added by Stats. 1965, Ch. 1899.)

Last verified: January 23, 2026

Key Terms

utilityacquisitionretirementcontractbenefitsemployeeagreementwage

Related Statutes

  • § 70123 Public Utility Employee Protections
  • § 40125 Employee Wage Deduction Authorization
  • § 50126 Employee Benefit Deductions
  • § 70125 Employee Wage Deduction Authorization
  • § 852 Public Utility Stock Acquisitions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 40123.
View Official Source