(A)If the director
finds pursuant to division (G)(1) of section 4141.24 of the Revised Code that
an employer has transferred its trade or business, or a portion thereof, to
another employer and the transferee is under substantially common ownership,
management, or control with the transferor, the director shall transfer the
experience of the transferor to the transferee and recalculate the rate of both
employers effective the date of the transfer, and for each calendar year
thereafter.
(B)If the director
finds pursuant to division (G)(2) of section 4141.24 of the Revised Code that
any person acquired the trade or business of an employer solely or primarily
for the purpose of obtaining a lower rate of contributions, the unemployment
experience of the acquired trade or business shall not be transferred, and the
director shall assign a rate to the person pursuant to division (A) of section
4141.25 of the Revised Code effective for the calendar year in which the
acquisition of the trade or business occurred, and for each applicable calendar
year thereafter.
(C)If the director
finds pursuant to division (C) of section 4141.48 of the Revised Code that a
person knowingly violated, attempted to violate, or advised another person in a
way that resulted in a violation of division (A) of section 4141.48 of the
Revised Code or any other provision of Chapter 4141. of the Revised Code
related to determining the assignment of a contribution rate, the person is
subject to the following penalties:
(1)If the person
is an employer, the director shall assign the employer the highest maximum rate
or penalty rate assignable under Chapter 4141. of the Revised Code for the rate
year during which the violation or attempted violation occurred and the three
rate years immediately following that rate year, except that, if the person's
business is already at the highest rate for any of those years, or if the
amount of increase in the person's rate would be less than two per cent for
that year, then an additional penalty rate of contributions of two per cent of
taxable wages shall be imposed for that year.
(2)If the person
is not an employer, the director shall assess a fine of five thousand dollars.
Five Year Review (FYR) Dates: 5/14/2020 and 05/14/2025
Certification: CERTIFIED ELECTRONICALLY
Date: 05/14/2020
Promulgated Under: 119.03
Statutory Authority: 4141.13
Rule Amplifies: 4141.24, 4141.48
Prior Effective Dates: 01/01/2006, 08/14/2008, 07/01/2015