Introduced
by
To establish that if a company acquires 10 percent or more of the employees, payroll, trade, inventory, services, or other assets of another firm, then the unemployment tax rate of the other firm may also apply to the receiving company. Taxes levied under the State Unemployment Tax Act (SUTA) are based on a firm’s layoff history, and there is concern that some companies are “SUTA dumping” by transferring employees to newly created or acquired companies with lower unemployment tax rates. House Bills 4174 to 4177 broadly authorize the promulgation of state regulations, and apply to "professional employer organizations," which are companies that "lease" employees to other firms on a long term or permanent basis, but remain the employee's employer of record for purposes of paying unemployment insurance taxes.
Referred to the Committee on Employment Relations, Training, and Safety
