There is a plethora of employment-related issues that should be heavily vetted in advance of a corporate transaction as the target company's employment-related obligations and liabilities may, depending on the structure of the transaction, become the obligations and liabilities of the buyer/new business entity.
Prior to the acquisition, it is important to carefully review employment policies and practices as well as employment records belonging to the target company to assess potential noncompliance with the law that could lead to significant liability down the road.
Below is a non-exhaustive list of a number of the key policies that should be in the target company's employee handbook or other work rules based on recent changes in California law.
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