Title 787 | Chapter 001 | Regulation 300


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787 KAR 1:300.Successorship.

Section 1.

Definitions.

(1)

"Domestic employing unit" means an employing unit for which service is provided as established in KRS 341.050(1)(g).

(2)

"Going concern" means an employing unit that is providing goods or services, maintaining a staff, or meeting payroll.

(3)

"Negotiation" means dealings conducted between two (2) or more parties for the purpose of reaching an understanding.

Section 2.

Except as established in Section 3 of this administrative regulation, successorship shall be deemed to have occurred between two (2) employing units if:

(1)

Negotiation occurs to bring about the transfer, either directly between the parties to the transfer, or indirectly through a third party intermediary; and

(2)

At least two (2) of the conditions established in this subsection are met, except this requirement shall not be satisfied if only paragraphs (c) and (d) of this subsection are met:

(a)

The employing unit was a going concern at the time negotiations for the transfer began;

(b)

The subsequent owner or operator continued or resumed basically the same type of employing unit in the same location;

(c)

The subsequent owner employed fifty (50) percent or more of the previous owner's workers in covered employment;

(d)

The previous owner employed fifty (50) percent or more of the subsequent owner's workers in covered employment; or

(e)

The subsequent owner acquired work contracts or commitments from the previous owner.

Section 3.

Successorship for a domestic employing unit shall be deemed to have occurred if two (2) of the conditions established under Section 2(2)(a) through (e) of this administrative regulation exist.

HISTORY: (22 Ky.R. 493; eff. 11-6-1995; Am. 27 Ky.R. 3364; eff. 8-15-2001; 48 Ky.R. 599, 1538; eff. 2-1-2022.)

CONTACT PERSON: Buddy Hoskinson, Labor Cabinet, Mayo-Underwood Building, 500 Mero Street, 4th Floor, Frankfort, Kentucky 40601, phone (502) 564-2199, fax (502) 564-7850, email: Buddy.Hoskinson@ky.gov.

7-Year Expiration: 2/1/2029

Last Updated: 2/2/2022


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