Transferring all or part of trade or business; successor employers
with substantially common ownership, management, or control
Sec. 7. (a) If:
(1) an employer transfers all or a portion of the employer's trade
or business to another employer; and
(2) at the time of the transfer, the two (2) employers have
substantially common ownership, management, or control;
the successor employer shall assume the experience rating of the
predecessor employer for the resources and liabilities of the
predecessor employer's experience account that are attributable to the
transfer.
(b) The contribution rates of both employers shall be recalculated
and made effective on the date that the transfer described in
subsection (a) is effective.
(c) The experience account balance and the payroll of the
predecessor employer on the date of the transfer, and the benefits
chargeable to the predecessor employer's original experience account
after the date of the transfer, must be divided between the
predecessor employer and the successor employer in accordance with
rules adopted by the department under IC 4-22-2.
(d) Any written determination made by the department is
conclusive and binding on both the predecessor employer and the
successor employer unless one (1) or both employers file with the
department a written protest setting forth the grounds and reasons for
the protest. A protest under this section must be filed not later than
ten (10) days after the date the department mails the initial
determination to the employing units. The protest shall be heard and
determined under this section and IC 22-4-32-1 through
IC 22-4-32-15. Both the predecessor employer and successor
employer shall be parties to the hearing before the administrative law
judge and are entitled to receive copies of all pleadings and the
decision.
As added by P.L.98-2005, SEC.9.
Last modified: May 27, 2006