N.J. Admin. Code § 12:16-18.1

Current through Register Vol. 56, No. 11, June 3, 2024

Section 12:16-18.1 - Transfer of predecessor's whole experience

(a) Upon receipt of notification that a predecessor employer has transferred its organization, trade or business, or substantially all its assets to a successor in interest, the Controller or his or her designee shall transfer the employment experience of the predecessor employer to the successor in interest if the employment experience of the predecessor with respect to the organization, trade or business, or assets may be considered indicative of the anticipated employment experience of the successor in interest. The basis for this determination shall be the examination of the files and records in the Department's possession, unless the successor provides evidence to the contrary, which would be subject to confirmation by the Controller or his or her designee.

(b) The successor in interest may, within four months of the date of such transfer of the organization, trade or business, or assets, or thereafter upon good cause shown, request a reconsideration of the transfer of employment experience of the predecessor employer. The request for reconsideration shall demonstrate to the satisfaction of the Controller or his or her designee, that the employment experience of the predecessor employer is not indicative of the future employment experience of the successor in interest.

(c) If a predecessor employer who transfers in whole his, her or its organization, trade, assets or business to a successor in interest, whether by merger, consolidation, sale, transfer, descent or otherwise and both the predecessor employer and the successor in interest are at the time of the transfer under common ownership, management or control, then the employment experience attributable to the transferred business shall also be transferred to and combined with the employment experience of the successor in interest.

(d) The transfer of employment experience under (c) above is mandatory and not subject to appeal or protest.

(e) Upon the transfer in whole of the organization, trade, assets or business of a predecessor employer to a successor in interest, the employment experience shall not be transferred if the successor in interest is not an employer at the time of the acquisition and the Controller or his or her designee finds that the successor in interest acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions.

N.J. Admin. Code § 12:16-18.1

Amended by R.1995 d.138, effective 3/6/1995.
See: 27 N.J.R. 61(a), 27 N.J.R. 919(a).
Amended by R.2006 d.425, effective 12/4/2006.
See: 38 N.J.R. 3229(a), 38 N.J.R. 5162(a).
Rewrote (b); and added (c) through (e).