SECTION 240:10-5-15. Successor acquiring the experience rating account of predecessor

(a)   Notification to transferring employer. When any employing unit acquires a portion of the experience rating account of an employer under the provisions of 40 O.S. Section 3-111(B), and makes written application for a transfer as provided by the Employment Security Act of 1980, written notice of the application for partial transfer shall be mailed or delivered to the transferring employer by a duly authorized Commission representative after receipt of the application.

(b)   Protesting partial transfer. Within twenty (20) days after the date of mailing or delivery of the written notice, the transferring employer may file a written protest to the transfer and request an oral hearing to present evidence in support of the protest. The hearing shall be conducted in the manner prescribed in 40 O.S. Section 3-115. Pending a final determination of the protest, no transfer of experience rating account shall be made. If it is determined that a transfer of a partial experience rating account should be made, then the accounts and contributions of the transferring and acquiring employers shall be adjusted in accordance with the transfer.

(c)   Partial transfer to non-subject employer. In the event of a partial transfer of the experience rating account of an employer to an acquiring employing unit, who was not an employer prior to the acquisition, the contribution rate of the acquiring employing unit shall be determined in accordance with the provisions of 40 O.S., Article 3, Part I, based upon the portion of the experience rating account that was transferred. The portion of the experience rating account that was transferred shall not thereafter be used to compute a contribution rate for the transferring employer. The contribution rate computed after the transfer shall be applicable to the acquiring employing unit as of the date of the acquisition.

(d)   Partial transfer to subject employer. If the acquiring employing unit was an employer prior to the acquisition and transfer, then the experience rating account that was transferred shall be consolidated with the employer's experience rating account prior to the acquisition, and a contribution rate computed on the combined experience under the provisions of 40 O.S., Article 3, Part I. The contribution rate computed after the transfer shall be applicable to the employer beginning with the first day of the calendar quarter in which the acquisition occurred. The portion of the experience rating account that was transferred shall not be used in computing a contribution rate for the transferring employer for any year subsequent to the year in which the transfer was effective.

[Source: Amended at 11 Ok Reg 1603, eff 5-12-94; Amended at 28 Ok Reg 1055, eff 6-15-11; Amended at 30 Ok Reg 491, eff 5-15-13; Amended at 31 Ok Reg 1239, eff 9-12-14]