{"data":{"id":"us-ok/okla.-stat.-tit.-40-40-3-111.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 40, § 40-3-111.1","heading":"Successor and predecessor employers - Special rules on","body":"transfer of rates and experience.\n\nSUCCESSOR AND PREDECESSOR EMPLOYERS - SPECIAL RULES ON TRANSFER\n\nOF RATES AND EXPERIENCE.\n\nA. Notwithstanding any other provision of law, the following\n\nshall apply regarding assignments of rates and transfers of\n\nexperience:\n\n1. If an employer transfers its trade or business, or a\n\nseparate and distinct establishment, or unit thereof, to another\n\nemployer or an entity that does not meet the definition of an\n\nemployer at the time of the transfer and there is substantially\n\ncommon ownership, management or control of the two employers or\n\nentities at the time of the transfer, then the experience rating\n\naccount attributable to the transferred trade or business shall be\n\ncombined with the experience rating account of the employer to whom\n\nsuch business is so transferred. The employer transferring its\n\ntrade or business shall be the predecessor employer and the employer\n\nor entity acquiring the transferred trade or business shall be the\n\nsuccessor employer. The successor employer shall acquire the\n\nexperience rating account of the predecessor employer, including the\n\npredecessor's actual tax and benefit experience, annual payrolls and\n\ntax rate. The successor employer shall also become jointly and\n\nseverally liable with the predecessor employer for all current or\n\ndelinquent taxes, interest, penalties and fees owed to the Oklahoma\n\nEmployment Security Commission by the predecessor employer. In the\n\ncase of the transfer of a separate and distinct establishment or\n\nunit within the predecessor employer, the successor employer shall\n\nacquire that portion of the items identified above that relate to\n\nthe establishment or unit acquired or its pro-rata share; and\n\n2. Whenever a person who is not an employer under the\n\nEmployment Security Act of 1980 at the time it acquires the trade or\n\nbusiness of an employer, the experience rating account of the\n\nacquired business shall not be transferred to that person if the\n\nCommission finds that the person acquired the business solely or\n\nprimarily for the purpose of obtaining a lower tax rate. Instead,\n\nthe person shall be assigned a tax rate under Section 3-110.1 of\n\nthis title. In determining whether the business was acquired solely\n\nor primarily for the purpose of obtaining a lower tax rate, the\n\nCommission shall examine objective factors which may include the\n\ncost of acquiring the business, whether the person continued the\n\nbusiness enterprise of the acquired business, how long the business\n\nenterprise was continued, or whether a substantial number of new\n\nemployees were hired for performance of duties unrelated to the\n\nbusiness activity conducted prior to acquisition.\n\nB. 1. If a person knowingly violates or attempts to violate\n\nparagraph 1 or 2 of subsection A of this section or any other\n\nprovision of the Employment Security Act of 1980 related to\n\ndetermining the assignment of the tax rate, or if a person knowingly\n\nadvises another person in a way that results in a violation of such\n\nprovision, the person shall be subject to the following penalties:\n\na. if the person is an employer, then the employer shall\n\nbe assessed a penalty equal to ten percent (10%) of\n\nthe actual taxes due in the calendar quarter in which\n\nthe employer violated or attempted to violate the\n\nprovisions of this section and a penalty equal to ten\n\npercent (10%) of the actual taxes due in each of the\n\nfollowing three (3) calendar quarters. The funds in\n\npayment of this penalty shall be deposited in the\n\nOklahoma Employment Security Commission Revolving Fund\n\nestablished under Section 4-901 of this title,\n\nb. if the person is not an employer, the person shall be\n\nsubject to a civil money penalty of at least One\n\nHundred Dollars ($100.00) and not more than Five\n\nThousand Dollars ($5,000.00) to be determined by the\n\nAssessment Board of the Oklahoma Employment Security\n\nCommission. Any fine shall be deposited in the\nent Security Commission Revolving Fund\n\nestablished under Section 4-901 of this title,\n\nb. if the person is not an employer, the person shall be\n\nsubject to a civil money penalty of at least One\n\nHundred Dollars ($100.00) and not more than Five\n\nThousand Dollars ($5,000.00) to be determined by the\n\nAssessment Board of the Oklahoma Employment Security\n\nCommission. Any fine shall be deposited in the\n\nOklahoma Employment Security Commission Revolving Fund\n\nestablished under Section 4-901 of this title.\n\n2. For purposes of this section, the term \"knowingly\" means\n\nhaving actual knowledge of or acting with deliberate ignorance or\n\nreckless disregard for the prohibition involved.\n\n3. For the purposes of this section, the term \"violates or\n\nattempts to violate\" includes, but is not limited to, intent to\n\nevade, misrepresentation or willful nondisclosure.\n\n4. In addition to the penalty imposed by paragraph 1 of this\n\nsubsection, any person who violates the provisions of this section\n\nshall be guilty of a misdemeanor and may be imprisoned for up to one\n\n(1) year.\n\nC. The Commission shall establish procedures to identify the\n\ntransfer or acquisition of a business for purposes of this section.\n\nD. For purposes of this section:\n\n1. \"Person\" has the meaning given such term by 26 U.S.C.,\n\nSection 7701(a)(1); and\n\n2. \"Trade or business\" shall include the employer's workforce.\n\nE. This section shall be interpreted and applied in such a\n\nmanner as to meet the minimum requirements contained in any guidance\n\nor regulations issued by the United States Department of Labor.","path":["OK Code","Title 40"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os40.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"dd26ecb5fbdde8eab6df25b298373d3a975f438722b06abc01fac71ab8c9c3da","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-40-40-3-110.1","next":"us-ok/okla.-stat.-tit.-40-40-3-113"},"notice":"GroundRules: Original legal text. Not legal advice."}