CHAPTER 120

S.P. 335 - L.D. 995

An Act To Conform Maine Employment Security Law with the

Federal SUTA Dumping Prevention Act of 2004

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 26 MRSA §1221, sub-§5-A is enacted to read:

5-A.__Transfers of experience and assignment of rates.__ Notwithstanding subsection 5, the following applies to the assignment of rates and transfers of experience.

A.__If:

(1)__An employer transfers its trade or business, or a portion of its trade or business, to another employer and, at the time of the transfer, there is substantially common ownership, management or control of the 2 employers, then the unemployment experience attributable to the transferred trade or business is transferred to the employer to whom the business is transferred. The rates of both employers must be recalculated and made effective immediately upon the date of the transfer of the trade or business.__The transfer of some or all of an employer's workforce to another employer shall be considered a transfer of trade or business when, as the result of such transfer, the transferring employer no longer performs trade or business with respect to the transferred workforce, and