§ 22-4-32-21 — Successor employer; notice of purchase; account clearance statements; liability for contributions; liens

Indiana § 22-4-32-21

• Jurisdiction: Indiana
• Art. 4: UNEMPLOYMENT COMPENSATION SYSTEM
• Ch. 32: Employer Liability, Rights, and Remedies

Text

(a) Any individual, group of individuals, or
other legal entity, whether or not an employing unit which acquires all
or part of the organization, trade, or business within this state of an
employer or which acquires all or part of the assets of the organization,
trade or business, shall notify the commissioner in the form and manner
prescribed by the department not later than five (5) days prior to the
acquisition.
(b) Unless the notice is given, the commissioner shall have the right
to proceed against either the predecessor or successor, in personam or
in rem, for the collection of contributions and interest due or accrued
and unpaid by the predecessor, as of the date of the acquisition, and the
amount of the liability shall, in addition, be a lien against the property
or assets so acquired which shall be prior to all other liens. However,
the lien shall not be valid as against one who acquires from the
successor any interest in the property or assets in good faith, for value
and without notice of the lien.
(c) On request in the form and manner prescribed by the department
after the acquisition is completed, the commissioner shall furnish the
successor with a statement of the amount of contributions and interest
due or accrued and unpaid by the predecessor as of the date of the
acquisition, and the liability of the successor and the amount of the lien
shall in no event exceed the reasonable value of the property or assets
acquired by the successor from the predecessor or the amount disclosed
by the statement, whichever is the lesser.
(d) An acquirer described in subsection (a) or a professional
employer organization under IC 22-4-6.5 may file a request for
clearance in the form and manner prescribed by the department at least
five (5) business days before an acquisition or transfer. After filing a
request, the acquirer or professional employer organization is entitled
to receive a statement indicating whether an account being acquired or
transferred is in good standing with the department as of the date of the
transfer. If the statement shows that the account that is being acquired
or transferred is in good standing with the department at the time of the
transfer, and the department later discovers an outstanding liability
associated with the acquired or transferred account, the department:
(1) may not assess a delinquent employer rate modification under
IC 22-4-11-2 based on the account for which a statement was
made under this subsection; and
(2) in the case of a PEO, shall administratively separate the
acquired or transferred client account from the PEO until the
liability is recovered.
(e) The remedies prescribed by this section are in addition to all
other existing remedies against the predecessor or successor.
Formerly: Acts 1947, c.208, s.3323; Acts 1951, c.295, s.24 1/2.
As amended by P.L.18-1987, SEC.94; P.L.5-1988, SEC.114;
P.L.21-1995, SEC.126; P.L.33-2013, SEC.5; P.L.122-2019,
SEC.45.