Legal Question in Employment Law in California

if a private company takes over a government operation, do they have to continue contributing to employee pensions


Asked on 8/31/12, 10:53 am

1 Answer from Attorneys

Since private companies do not "take over" government operations, there is no way to answer your question. If you can be more specific about what the scenario is you are talking about, perhaps we could answer. If you are talking, however, about a government shutting down an agency or department and contracting the work out, such as closing down the city streets maintenance operation and contracting with private paving contractors for street maintenance, or cancelling police duty at the community performing arts center and hiring a private security contractor for performances, then the answer is clearly "no." In that situation all the public employees are laid off or reassigned. The contractor who comes in to provide the work or services hires their own employees. So there are no public employee pension contributions to make anymore.

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Answered on 9/01/12, 12:08 am


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