Section 8.85.292. Contribution rate for successor employer in business.

	(a)  To determine if a business was acquired or transferred solely or primarily for the purpose of obtaining a more favorable rate of contributions under AS 23.20.295 or 23.20.297, the department shall use objective factors on a case by case basis, including  
		(1)  the cost of acquiring the business;  
		(2)  whether the successor employer continued essentially the same business activity as the predecessor employer;  
		(3)  how long the same business activity was continued;  
		(4)  whether the successor employer hired a substantial number of new employees for performance of duties unrelated to the business activity before the acquisition; and  
		(5)  whether there was a continuity of control of the business.  
	(b) For the purposes of this section, continuity of control will be considered to exist if one or more persons, businesses, or organizations controlling a business remain in control after an acquisition or change in form. Evidence of continuity of control includes  
		(1)  ownership of the organization conducting the business;  
		(2)  ownership of assets necessary to conduct the business;  
		(3)  security arrangements or lease arrangements covering assets necessary to conduct the business, or a contract when the ownership, stated arrangements or contract provides for or allows direction of the internal affairs or conduct of the business.  

Authorities

23.20.045;23.20.295;23.20.297

Notes

Authority

AS 23.20.045 AS 23.20.295 AS 23.20.297

History

Eff. 3/25/2007, Register 181