DAR File No. 39242

This notice was published in the April 15, 2015, issue (Vol. 2015, No. 8) of the Utah State Bulletin.

Workforce Services, Unemployment Insurance

Rule R994-304

Special Provisions Regarding Transfers of Unemployment Experience and Assigning Rates

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 39242
Filed: 03/25/2015 05:08:36 PM


Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 35A-4-304 seeks to enforce federal regulations requiring successor employers pay the rates that applied to the predecessor employer. The Department has authority under Subsections 35A-1-104(1) and (4) and 35A-4-502(1)(b) to adopt rules and establish eligibility standards. The rule is necessary to define terms used in the statute.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received in the last five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

When an employer sells or transfers its business to a different entity, especially when the transfer is made to avoid higher unemployment rates, the rate of the old business is transferred to the new entity. The rule is necessary to explain when the rates will be charged to the new employer so as to avoid State Unemployment Tax Act (SUTA) "dumping" which is a scheme to avoid higher experience ratings. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

  • Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov



Authorized by:

Jon Pierpont, Executive Director

Additional Information

More information about a Five-Year Notice of Review and Statement of Continuation is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2015/b20150415.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

For questions regarding the content or application of this rule, please contact Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov.  For questions about the rulemaking process, please contact the Division of Administrative Rules.