SB 345
Creates provisions for transfer of ownership of a company and the employer's obligation for the unemployment experience
Sponsor:
LR Number:
1546S.01I
Last Action:
3/2/2005 - Hearing Cancelled Small Business, Insurance & Industrial Relations Committee
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2005

Current Bill Summary

SB 345 - When there is substantial common ownership of a business, and an employer transfers its trade or business, the attributable unemployment experience is transferred to the employer to whom the business is transferred. Upon such a transfer, the rates and liabilities of both employers shall be recalculated.

If the entity is not an employer at the time it acquires the business, the unemployment experience is not transferred to that entity if the division finds that the acquisition was primarily for obtaining a lower interest rate. Instead, the entity shall be assigned the applicable new employer rate (section 288.090). The division shall use objective factors to determine whether or not the acquisition was primarily for obtaining a lower rate of contributions.

Any violation of provisions related to determining the assignment of a contribution rate is subject to the following penalties:

- If the violator is an employer, for the current year and following three years, the base rate shall be the maximum rate applicable to that type of employer or the employer's current base rate plus two percent, whichever is greater. Additionally, a civil monetary penalty of not more than five thousand dollars may be imposed.

- If the violator is not an employer, the entity is subject to a civil monetary penalty of not more than five thousand dollars (such fine shall be deposited in the special employment security fund).

ANDY LYSKOWSKI

Amendments