Section 1127 Of Chapter 7.5. Collective Bargaining Agreements From California Labor Code >> Division 2. >> Part 3. >> Chapter 7.5.
1127
. (a) Where a collective bargaining agreement between an
employer and a labor organization contains a successor clause, such
clause shall be binding upon and enforceable against any successor
employer who succeeds to the contracting employer's business until
the expiration date of the agreement stated in the agreement. No such
successor clause shall be binding upon or enforceable against any
successor employer for more than three years from the effective date
of the collective bargaining agreement between the contracting
employer and the labor organization.
(b) As used in this section, "successor employer" means any
purchaser, assignee, or transferee of a business the employees of
which are subject to a collective bargaining agreement, if such
purchaser, assignee, or transferee conducts or will conduct
substantially the same business operation, or offer the same service,
and use the same physical facilities, as the contracting employer.
(c) This section shall not apply to a receiver or trustee in
bankruptcy of any contracting employer who has gone into receivership
or bankruptcy, or to any employer who acquires a business from a
receiver or trustee in bankruptcy, or to any employer which is a
public entity, or to any employer who is subject to the National
Labor Relations Act, Agricultural Labor Relations Act of 1975, or the
Railway Labor Act.
(d) An employer who is a party to a collective bargaining
agreement containing a successor clause has the affirmative duty to
disclose the existence of such agreement and such clause to any
successor employer. Such disclosure requirement shall be satisfied by
including in any contract of sale, agreement to purchase, or any
similar instrument of conveyance, a statement that the successor
employer is bound by such successor clause as provided for in the
collective bargaining agreement.