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California Unemployment Insurance Code Section 1137.1

Legal Research Home > California Laws > Unemployment Insurance Code > California Unemployment Insurance Code Section 1137.1

1137.1.  A jeopardy assessment may be made only upon a finding by
the director, based upon probable cause, that any of the following
conditions are met:
   (a) The employing unit is insolvent.
   (b) The employing unit has transferred, or is about to transfer,
assets for less than fair market value, and by so doing has rendered,
or is likely to render, itself insolvent.
   (c) The employing unit has been dissolved.
   (d) Any person liable for the employing unit's contribution, or
any owner, officer, director, partner, or other person having charge
of the affairs of the employing unit has departed or is about to
depart the State of California and that the departure is likely to
deprive the director of a source of payment of the employing unit's
contribution.
   (e) Any person referred to in subdivision (d), or the employing
unit, is secreting assets or is moving, placing, or depositing assets
outside of the state for the purpose of interfering with the orderly
collection of any contribution. The moving, placing, or depositing
of assets outside of the state which constitutes a regular business
practice and which does not in any way deplete the assets of the
employing unit shall not be deemed to be interfering with the orderly
collection of any contribution under this subdivision.
   (f) The assessment to be issued against the employing unit or an
individual includes a penalty under subdivision (a) of Section 1128
or Section 1128.1.

Last modified: February 22, 2013