Legal Question in Workers Comp in California

Re: sale of business

Workers' Comp. is like any other insurance policy. If the employee was injured during the period of time your business was covered, then the same benefits flow to the employee whether or not the business is in existence. For example, if your employee was injured because your story entirely blew up, there would be no business left, but your fire insurance insurance and other coverages would still apply. You owe no duty to your employees in selling your business, unless there is a contract with provisions in it saying you do, but it is nicer to do what you can. Also, if they are happy, they will be better workers for the new owner which means the new owner is less likely to call you with complaints. There are some cities, such as Berkeley I think, that does have rules on the closing down of business and the warnings that must be given, but your business is not closing down and is probably too small to come under those regulations. You might want to call up the local government and find out if they do have any regulations and perhaps the local chamber of commerce to see if they have any information, especially as to what you need to know as to a sale.