Okla. Stat. tit. 40, § 40-3-111.1

transfer of rates and experience.

SUCCESSOR AND PREDECESSOR EMPLOYERS - SPECIAL RULES ON TRANSFER

OF RATES AND EXPERIENCE.

A. Notwithstanding any other provision of law, the following

shall apply regarding assignments of rates and transfers of

experience:

1. If an employer transfers its trade or business, or a

separate and distinct establishment, or unit thereof, to another

employer or an entity that does not meet the definition of an

employer at the time of the transfer and there is substantially

common ownership, management or control of the two employers or

entities at the time of the transfer, then the experience rating

account attributable to the transferred trade or business shall be

combined with the experience rating account of the employer to whom

such business is so transferred. The employer transferring its

trade or business shall be the predecessor employer and the employer

or entity acquiring the transferred trade or business shall be the

successor employer. The successor employer shall acquire the

experience rating account of the predecessor employer, including the

predecessor's actual tax and benefit experience, annual payrolls and

tax rate. The successor employer shall also become jointly and

severally liable with the predecessor employer for all current or

delinquent taxes, interest, penalties and fees owed to the Oklahoma

Employment Security Commission by the predecessor employer. In the

case of the transfer of a separate and distinct establishment or

unit within the predecessor employer, the successor employer shall

acquire that portion of the items identified above that relate to

the establishment or unit acquired or its pro-rata share; and

2. Whenever a person who is not an employer under the

Employment Security Act of 1980 at the time it acquires the trade or

business of an employer, the experience rating account of the

acquired business shall not be transferred to that person if the

Commission finds that the person acquired the business solely or

primarily for the purpose of obtaining a lower tax rate. Instead,

the person shall be assigned a tax rate under Section 3-110.1 of

this title. In determining whether the business was acquired solely

or primarily for the purpose of obtaining a lower tax rate, the

Oklahoma Statutes - Title 40. Labor Page 123

Commission shall examine objective factors which may include the

cost of acquiring the business, whether the person continued the

business enterprise of the acquired business, how long the business

enterprise was continued, or whether a substantial number of new

employees were hired for performance of duties unrelated to the

business activity conducted prior to acquisition.

B. 1. If a person knowingly violates or attempts to violate

paragraph 1 or 2 of subsection A of this section or any other

provision of the Employment Security Act of 1980 related to

determining the assignment of the tax rate, or if a person knowingly

advises another person in a way that results in a violation of such

provision, the person shall be subject to the following penalties:

a. if the person is an employer, then the employer shall

be assessed a penalty equal to ten percent (10%) of

the actual taxes due in the calendar quarter in which

the employer violated or attempted to violate the

provisions of this section and a penalty equal to ten

percent (10%) of the actual taxes due in each of the

following three (3) calendar quarters. The funds in

payment of this penalty shall be deposited in the

Oklahoma Employment Security Commission Revolving Fund

established under Section 4-901 of this title,

b. if the person is not an employer, the person shall be

subject to a civil money penalty of at least One

Hundred Dollars ($100.00) and not more than Five

Thousand Dollars ($5,000.00) to be determined by the

Assessment Board of the Oklahoma Employment Security

Commission. Any fine shall be deposited in the
ent Security Commission Revolving Fund

established under Section 4-901 of this title,

b. if the person is not an employer, the person shall be

subject to a civil money penalty of at least One

Hundred Dollars ($100.00) and not more than Five

Thousand Dollars ($5,000.00) to be determined by the

Assessment Board of the Oklahoma Employment Security

Commission. Any fine shall be deposited in the

Oklahoma Employment Security Commission Revolving Fund

established under Section 4-901 of this title.

2. For purposes of this section, the term "knowingly" means

having actual knowledge of or acting with deliberate ignorance or

reckless disregard for the prohibition involved.

3. For the purposes of this section, the term "violates or

attempts to violate" includes, but is not limited to, intent to

evade, misrepresentation or willful nondisclosure.

4. In addition to the penalty imposed by paragraph 1 of this

subsection, any person who violates the provisions of this section

shall be guilty of a misdemeanor and may be imprisoned for up to one

(1) year.

C. The Commission shall establish procedures to identify the

transfer or acquisition of a business for purposes of this section.

D. For purposes of this section:

1. "Person" has the meaning given such term by 26 U.S.C.,

Section 7701(a)(1); and

2. "Trade or business" shall include the employer's workforce.

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E. This section shall be interpreted and applied in such a

manner as to meet the minimum requirements contained in any guidance

or regulations issued by the United States Department of Labor.