No. 39242 (5-year Review): Rule R994-304. Special Provisions Regarding Transfers of Unemployment Experience and Assigning Rates

DAR File No.: 39242
Filed: 03/25/2015 05:08:36 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 35A-4-304 seeks to enforce federal regulations requiring successor employers pay the rates that applied to the predecessor employer. The Department has authority under Subsections 35A-1-104(1) and (4) and 35A-4-502(1)(b) to adopt rules and establish eligibility standards. The rule is necessary to define terms used in the statute.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received in the last five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

When an employer sells or transfers its business to a different entity, especially when the transfer is made to avoid higher unemployment rates, the rate of the old business is transferred to the new entity. The rule is necessary to explain when the rates will be charged to the new employer so as to avoid State Unemployment Tax Act (SUTA) "dumping" which is a scheme to avoid higher experience ratings. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

Effective:

03/25/2015

Authorized by:

Jon Pierpont, Executive Director

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