Asmus v. Pacific Bell

Asmus v. Pacific Bell, 23 Cal.4th 1 is a US labor law case, concerning the scope of federal preemption against state law for labor rights.

Facts

In 1986, Pacific Bell's "Management Employment Security Policy" stated it would ensure its staff has a right to be reassigned to different jobs and retrained if their existing jobs were eliminated. But in 1990 it withdrew this right. Sixty management employees claimed this withdrawal was unlawful.

Judgment

The California Supreme Court held an employment policy promising long term job security to a firm's managers can be modified if the policy is one of 'indefinite duration' the policy is in effect for a 'reasonable time' 'reasonable notice' was given for a change, and no 'vested benefits' are affected by the change.
George CJ dissented. Mosk J and Kennard J concurred in the dissent.