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Acquisition of Employees California

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  • Acquisition of Employees California

    Hello, need your recommendations and experties on this one. We have acquired 170 employees from another business and wanted to know what pre-employment policy/procedures you have in place.

    We treat them as new hires and have them complete the pre-employement requirements and new hire requirements. The big boss wants to be convinced of why not to bypass all of these steps such as no background, no drug screening.....

    Do you have any cases I an refer to so I can present to them to convince them as of why we should treat them as a new hire!

    Tsa Tsi

  • #2
    You are going to be liable just as if you had hired someone brand new unless somehow in the acquisition you got all the HR/employee files. Even if you did, I would do a full audit on all 170 files.

    I can understand some savings, but you have to weigh the liabilities. You didn't say what type of business it was, so it's hard to know what your full liabilities might be.

    Plus you never know what might have changed since their original hire.


    • #3
      I would also consider them as if they were "new hires" - protect yourself.
      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.


      • #4
        If you acquired the whole business the nature of the acquisition may determine that they are already your employees...check the details with legal counsel ...details matter.

        Me, Id not want to inherit a pack of unknown problems .

        If you merely roll them over do you acquire a build up of vested vacation pay in CA?

        Acquired lots of smaller firms ..none in CA...all sorts of stuff in the HR pile not necessarily well covered by those in hurry to do a deal.


        • #5
          Acquisition of Employees-California

          Good Day to you all!

          I agree with all and that is what we have been doing treating them as new hires but upper management does not agree!

          Many Thanks!

          Tsa Tsi


          • #6
            Leave transfer/accrual is a separate issue and not what you asked so I will set that aside. As far as new hire paperwork and screening, it depends. If you are in an industry which requires it, follow the regulations. The regs may spell out when it is necessary to do a screening.

            Otherwise, I would look at what the previous company did and whether or not they did anything pre-hire and if so, whether it really make sense to re-do what has already been done. If the prior company never did anything and you want to make the offers conditional on passing the background check, go for it. If the prior company did this already, or the "new hires" are guaranteed jobs with you due to prior agreements, it may not make sense to do them over to get the same results.

            As for the I-9, you do need those on file as well as tax forms. Depending how the transition took place, you may need to obtain them.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


            • #7
              If these are truly new hires then you can be as thorough as the local winds deem appropriate or lack of same ....I just think it's unwise to not follow your own basic new hire steps ..a few problems in the barrel of 170 will quickly eat up the cost savings of having cut corners ..or at least my old experience is that many problems were due to somebody cutting corners on the employee intake equation .

              If they are not true new hires, and your post is not clear nor did you ask the question may be dealing with vacation and FMLA and other clocks NOT set at CA specific ones.


              • #8
                What will you do with the data you uncover? Drug tests, background screenings, reference checks - are you going to make hiring/firing decisions based on that data? Or are you keeping them all, no matter what you find?


                • #9
                  Raster, the poster is not asking about FMLA or other issues of seniority so speculating on how those are being handled it not helpful. There are very few instances where the law dictates an employer do anything pre-hire. Without knowing the duties or type of business, it is difficult to know if any of those apply but presumably, the OP is already aware when that is the case. Otherwise, it is a judgment call whether to undergo the expense of drug and background checks for emplo7yees merely transitioning from employment under one company name to another.
                  I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


                  • #10
                    And I disagree that the post is not clear. The post is quite clear as to what the poster is looking for. What's not clear is why Raster continues to insists on pulling in issues that the poster has not asked about when he has been told that his membership is in jeopardy if he doesn't stop it.

                    Final warning, Raster.
                    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.