GOVERNOR SIGNS SUCCESSOR EMPLOYER BILL – GROCERY LEASES

***Important*** If you currently lease, or plan on leasing to grocery stores, this bill may impact you.  You are advised to understand its provisions and/or consult legal counsel to make sure know its impacts on your property.

AB 359 (Gonzalez D) requires any successor grocery employer to retain employees of the former grocery employer for 90 days and continue to offer continued employment unless the employees’ performance during the 90-day period was unsatisfactory.  Position:  OPPOSE.  This bill has been signed into law.

Without getting into the details, the law requires the employees of a grocery store that has vacated a space be considered for employment by any grocery store that moves into that space.  For us, I think this has obvious leasing implications… and much less obvious Labor Relations implications.

Governor’s Signature Message: To the Members of the California State Assembly: I am signing Assembly Bill 359, which would require a successor grocery employer to retain eligible grocery workers for a 90-day transitional period and, upon completion of that period, require the successor grocery employer to consider offering continued employment to those workers. As drafted, the bill is not clear how the provisions apply if an incumbent grocery employer has ceased operations. The author and sponsors have committed to clarify that the law would not apply to a grocery store that has ceased operations for six months or more. I look forward to receiving that fix before the end of this legislative session. Sincerely, GOVERNOR EDMUND G. BROWN JR.

That bill to “clean up” AB 359 has already been introduced.  That bill is AB 897 (Gonzales)

Again, if you currently lease, or plan on leasing to grocery stores, this bill may impact you and you are advised to consult legal counsel to make sure you know how it impacts leasing on your property.

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