§ 135.1. — 135.1. (Amended by Stats. 1994, Ch. 1200, Sec. 80.)

(a)
A new employing unit shall not be created when there is an acquisition or change in the form or organization of an existing business enterprise, or severable portion thereof, and there is a continuity of control of the business enterprise.
(b)
Control of a business enterprise may occur by means of ownership of the organization conducting the business enterprise, ownership of assets necessary to conduct the business enterprise, security arrangements or lease arrangements covering assets necessary to conduct the business enterprise, or a contract when the ownership, stated arrangements or contract provide for or allow direction of the internal affairs or conduct of the business enterprise.
(c)
A continuity of control will exist if one or more persons, entities, or other organizations controlling the business enterprise remains in control of the business enterprise after an acquisition or change in form. Evidence of continuity of control shall include, but not be limited to, changes of an individual proprietorship to a corporation, partnership, limited liability company, association, or estate; a partnership to an individual proprietorship, corporation, limited liability company, association, estate, or the addition, deletion, or change of partners; a limited liability company to an individual proprietorship, partnership, corporation, association, estate, or to another limited liability company; a corporation to an individual proprietorship partnership, limited liability company, association, estate, or to another corporation or from any form to another form.
(d)
An employing unit described in subdivision (a) shall continue to be the same employer for the purposes of this code as before the acquisition or change in form.
(e)
This section shall not modify the provisions of Article 2 (commencing with Section 1731) of Chapter 7.
(f)
This section shall be subject to subdivision (e) of Section 982 and subdivision (d) of Section 1127.5.

Legislative History

Amended by Stats. 1994, Ch. 1200, Sec. 80. Effective September 30, 1994.