On October 8, 2023, California’s Governor signed Assembly Bill (AB) 647, which revises recall rights for grocery workers when there is a change of control in a grocery establishment.

Under the bill, the definition of “grocery establishment” includes a “distribution center owned and operated by a grocery establishment and used primarily to distribute goods to and from its owned stores,” regardless of its square footage. It also excludes from the definition a retail store that ceased operations for 12 months or more.

Existing law establishes grocery worker retention provisions requiring the buyer of an existing grocery store to retain employees for a 90-day transition period during which an employee may only be discharged for cause, as specified, and considered for continued employment at the end of the transition period.

The bill also adds an enforcement mechanism for violations of the law.

The revisions to the recall rights take effect January 1, 2024.