Section § 2066

Explanation

If you take over a car washing or polishing business and the previous owner owed wages or penalties, you might be responsible for paying them. This happens if you use the same facilities or workers, share ownership or control, employ managers from the old business, or are related to someone who owned or had a stake in the old business.

A successor to any employer that is engaged in car washing and polishing that owed wages and penalties to the predecessor’s former employee or employees is liable for those wages and penalties if the successor meets any of the following criteria:
(a)CA Labor Code § 2066(a) Uses substantially the same facilities or workforce to offer substantially the same services as the predecessor employer.
(b)CA Labor Code § 2066(b) Shares in the ownership, management, control of the labor relations, or interrelations of business operations with the predecessor employer.
(c)CA Labor Code § 2066(c) Employs in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected employees of the predecessor employer.
(d)CA Labor Code § 2066(d) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer of any person who had a financial interest in the predecessor employer.