Introduced
by
To revise details of the law that makes it illegal for a company to transfer or acquire a business, or a portion of one, for the purpose of lowering its unemployment insurance tax. Under the State Unemployment Tax Act (SUTA), these tax assessments are based on a firm’s layoff history, and the prohibition was adopted to address concerns that some firms were “SUTA dumping” by transferring employees to newly created or acquired companies with lower unemployment tax rates. The bill increases the penalty of a higher tax assessment by extending it for three years instead of just one.
Referred to the Committee on Labor
