(A)The transfer
of substantially all of a trade or business will result in the transferee
becoming a successor in interest if all of the following requirements are
satisfied:
(1)Seventy-five
per cent or more of the assets of the transferor's trade or business located in
the state of Ohio are transferred to the transferee;
(2)Immediately
after the acquisition, the transferee employs seventy-five per cent or more of
the same individuals covered under the Ohio unemployment compensation law who
immediately prior to the transfer were employed in such business; and
(3)An application
signed by the transferor and the transferee requesting that the transferee be
made a successor in interest is submitted to the director. The application,
containing all the information required in paragraph (B) of this rule, shall be
filed with the director within ninety days from the date the director sends
notice to the transferee that the request may qualify for a transfer of
experience. Failure to submit the application within the prescribed time limits
shall result in the automatic denial of the application. Under this type of
transfer, the successor in interest shall assume all of the resources and liabilities
of the transferor's account, including the transferor's entire unemploymentemployment
experience. The director shall revise the contribution rates of the transferor
and the transferee to reflect the results of the successorship.
(B)In order for
the director to determine whether substantially all of the assets of the
transferor's business are transferred to the transferee and whether,
immediately after the acquisition, the transferee employed substantially the
same individuals covered under the Ohio unemployment compensation law who
immediately prior to the transfer were employed in such trade or business, the
application referred to in paragraph (A) of this rule mustshall provide:
(1)The number of
individuals covered under the Ohio unemployment compensation law employed by
the transferor at the time of the transfer and the number of individuals
covered under the Ohio unemployment compensation law employed by the transferee
immediately after the acquisition; and
(2)A statement
signed by the transferor and transferee that provides:
(a)The monetary
value of the total assets of the transferor located in the state of Ohio at the
time of the acquisition, including the valuation of real property and personal
property consistent with the employer's most recent valuation for federal tax
purposes, and intangible property including the value of patents, trademarks
and goodwill; and
(b)The monetary
value of assets that were transferred at the time of the acquisition as valued
in paragraph (B)(2)(a) of this rule.
(C)The
application referred to in paragraph (A) of this rule mustshall be signed by a duly authorized representative of
both the transferor and the transferee.
(D)The transfer
of experience will not be approved unless all of the contributions, interest
and forfeitures due to the department by both the transferor and the transferee
are paid in full no later than a date set by the director.
(E)The director
shall not approve a transfer of experience or contribution rates of the
transferee or transferor under this rule for any contribution period with
respect to which the director has determined contribution rates for the
transferee or transferor pursuant to division (G) of section 4141.24 or section
4141.48 of the Revised Code.
Effective: 3/28/2019
Five Year Review (FYR) Dates: 1/7/2019 and 03/28/2024
Certification: CERTIFIED ELECTRONICALLY
Date: 03/14/2019
Promulgated Under: 119.03
Statutory Authority: 4141.13
Rule Amplifies: 4141.24, 4141.48
Prior Effective Dates: 01/01/1974, 05/29/1990, 05/01/1993,
03/26/1999, 01/15/2001, 01/26/2002, 01/01/2006