If the employment contract is transferred, then you are not terminated, because the contract is assigned to the new employer, and that employer is therefore liable under the terms of the original contract.
If the employment contract is not transferred, then you are being involuntarily terminated/fired, by the old employer, without cause, therefore you are entitled to the severance agreed to under the contract.
Based upon your stated facts, I see no option under which either the old or new employer could avoid either retaining your services and the old contract, or paying the severance.
Re contacting the Labor Commissioner (Division of Labor Standards Enforcement), the DLSE does not generally enforce this sort of benefit on behalf of an employee, because of the complexity of the litigation. You can certainly file a wage claim,
but more than likely you will have to hire a private employment rights attorney
to sue (unless you want to sue for the $7,500 maximum small claims
amount, and waive any additional rights under the contract).
Hope this helps.
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