HI HB634

Successor employers must hire all incumbent non-supervisory and non-confidential employees when a covered establishment (100+ employees) is divested, with limited exceptions.

Successor employers may not require incumbent employees to submit new job applications unless existing employee files are incomplete.

Successor employers may conduct lawful pre-hire screening including criminal background checks and substance abuse testing on incumbent employees.

Successor employers may retain fewer than 100% of incumbent employees only if the successor's business is substantially dissimilar to the former employer's or if human resource needs are reduced, with displacement proportional to the reduction.

Employers violating this section must compensate dislocated employees for the difference between their former wages and unemployment insurance benefits received during the covered period; effective July 1, 2013.