23-733.01. Assignments of rates; transfers of experience; violation; civil penalty; definitions
A. If an employer transfers the employer's trade or business or a portion of the trade or business to another employer and at the time of the transfer there is substantially common ownership, management or control between the two employers, the unemployment experience that is attributable to the initial employer shall be transferred to the successor employer. The rate of both employers shall be recalculated and made effective to the beginning of the calendar year that follows the date of the transfer of trade or business.
B. If a person is not an employer that is subject to this chapter when the employer acquires a trade or business of an employing unit, the unemployment experience of the acquired business shall not be transferred to the successor employer if the department determines that the successor employer acquired the trade or business for the purpose of obtaining a lower rate of contributions. Instead, the department shall assign the standard contribution rate under section 23-729 to the successor employer. When making a determination under this section, the department shall consider the cost of acquiring the business, whether the person continues the business enterprise of the acquired business, the length of time that the enterprise is continued and whether a substantial number of new employees were hired to perform duties that were unrelated to the business activity before the acquisition.
C. If an employer or a person knowingly violates or attempts to violate this section for the purpose of obtaining a lower rate of contribution or if a person knowingly advises an employer or a person on evading or defeating a contribution or its payment, the person or employer shall be subject to the following penalties:
1. If the person is an employer, the person shall be assigned the highest rate assignable under this chapter for the rate year in which the transfer or the attempted transfer occurred and for the following three rate years. If the person's business is already at the highest rate for any year, or if the amount of increase in rate would be less than two per cent for any year, the contribution penalty rate of two per cent of taxable wages shall be imposed for any such year.
2. If the person is not an employer, the department shall assess against the person a civil penalty of five thousand dollars. The department shall deposit penalties collected pursuant to this paragraph in the penalty and interest account pursuant to section 23-705.
3. Any person or employer in violation of this section may also be prosecuted pursuant to section 13-2310 or 13-2311. This does not preclude prosecution pursuant to section 23-786.
D. Notwithstanding any other law, this section applies to the assignments of rates and transfers of experience under this chapter.
E. This department shall apply this section in order to meet the minimum requirements of any guidance or regulation that is issued by the United States department of labor.
F. The department shall adopt rules to identify the transfer or acquisition of a business under this section.
G. For the purposes of this section:
1. " Knowingly" means having actual knowledge of or acting with deliberate ignorance or reckless disregard of a requirement.
2. " Person" means person as defined in section 7701(a)(1) of the internal revenue code.
3. " Trade or business" includes an employer's workforce.
4. " Violates or attempts to violate" includes an action to evade, conceal, misrepresent or engage in wilful nondisclosure.
Structure Arizona Revised Statutes
§ 23-101 - Industrial commission; members; qualifications; appointment; terms; compensation; removal
§ 23-102 - Payment of salaries of commissioners
§ 23-103 - Organization; quorum
§ 23-104 - Seal; copies of orders or records as evidence
§ 23-105 - Sites of offices and sessions; business hours; sessions and records; voting
§ 23-106 - Capacity to sue and be sued; service of summons on commission
§ 23-108 - Director; employees; compensation and expenses
§ 23-108.01 - Powers and duties of director
§ 23-108.02 - Administrative law judges
§ 23-108.03 - Performance of certain powers and duties
§ 23-110 - Industrial commission ombudsman
§ 23-201 - Obtaining labor by false pretenses; civil liability; classification
§ 23-202 - Exaction of fee or gratuity as condition of employment prohibited; classification
§ 23-204 - Employee benefits; state preemption; exemption; definition
§ 23-205 - Employee scheduling; state preemption; exemptions
§ 23-206 - Employers; accommodations required
§ 23-213 - Employer actions; federal or state law compliance
§ 23-216 - Independent contractors; applicability
§ 23-231 - Prohibited employments of persons under the age of eighteen
§ 23-232 - Prohibited employments of persons under the age of sixteen
§ 23-233 - Permissible hours of labor for persons under the age of sixteen; exceptions; definition
§ 23-234 - Minimum age of newspaper carriers
§ 23-236 - Cease and desist order; time for compliance; civil penalty
§ 23-237 - Hearings on cease and desist orders
§ 23-239 - Violation; classification
§ 23-240 - Rules and regulations
§ 23-241 - Application for variation; contents; notice; denial; hearing
§ 23-242 - Applicability of other laws
§ 23-281 - Operation of certain railroad employers on prescribed time
§ 23-286.01 - Agricultural operations
§ 23-287 - Requiring railroad employee to work longer than sixteen consecutive hours; classification
§ 23-312 - Powers and duties of commission
§ 23-313 - Investigation of wage rates
§ 23-314 - Wage board; membership; organization; quorum; compensation
§ 23-315 - Classification of employments by wage board
§ 23-316 - Establishment of minimum fair wage; procedure; criteria
§ 23-317 - Learner and apprentice wage rates
§ 23-318 - Power of wage board to administer oaths, issue subpoenas and take depositions
§ 23-319 - Notice of hearing on wage matters
§ 23-320 - Duty of commission to provide information to wage board
§ 23-321 - Report of wage board; action by commission
§ 23-323 - Posting of wage orders
§ 23-324 - Reconsideration of minimum wages in effect over a year
§ 23-326 - Special licenses to work for less than minimum wage
§ 23-327 - Action by employee for recovery of wages; amount of recovery
§ 23-328 - Contract or agreement for employment of minor at oppressive wage void
§ 23-329 - Violations; classification
§ 23-341 - Equal wage rates; variations; penalties; enforcement
§ 23-352 - Withholding of wages
§ 23-353 - Payment of wages of discharged employee; violation; classification
§ 23-354 - Preference of wages in insolvency proceedings or upon death of employer
§ 23-355 - Action by employee to recover wages; amount of recovery
§ 23-357 - Investigation of wage and nonwage compensation claims
§ 23-358 - Review of department determination
§ 23-359 - Effect of department determination
§ 23-361 - Rules and regulations
§ 23-361.01 - Employer requirements; cash payments; unlawful practices; civil penalty
§ 23-361.02 - Paycheck deductions; authorization; civil penalty; definition
§ 23-362 - Minimum wage; prohibition
§ 23-362; Version 2 - Definitions
§ 23-365 - Reliance on administrative rule or regulation
§ 23-372 - Accrual of earned paid sick time
§ 23-373 - Use of earned paid sick time
§ 23-374 - Exercise of rights protected; retaliation prohibited
§ 23-377 - Confidentiality and nondisclosure
§ 23-379 - Other legal requirements
§ 23-380 - Public education and outreach
§ 23-381 - Collective bargaining agreements
§ 23-391 - Overtime pay; workweek
§ 23-405 - Duties and powers of the industrial commission relative to occupational safety and health
§ 23-407 - Duties and powers of the division
§ 23-409 - Advisory committees
§ 23-410 - Development of standards and rules
§ 23-411 - Temporary and experimental variances
§ 23-412 - Permanent variances
§ 23-413 - Protest of validity of order
§ 23-414 - Emergency temporary standards
§ 23-416 - De minimis violations
§ 23-417 - Enforcement procedure
§ 23-418 - Penalties; violation; classification
§ 23-420 - Hearing rights and procedures
§ 23-421 - Decisions of the administrative law judge; definition
§ 23-423 - Review board rights and procedures; definition
§ 23-425 - Employee discharge or discrimination
§ 23-426 - Confidentiality of trade secrets
§ 23-427 - Employer recordkeeping
§ 23-428 - State legal representation
§ 23-429 - Employer and employee representation
§ 23-430 - Political subdivision jurisdiction
§ 23-431 - Standards of competency
§ 23-432 - Voluntary protection and other model system implementation programs; exemption
§ 23-473 - Owner's and operator's duty
§ 23-474 - Duties of commission
§ 23-476 - Safety standards and regulations
§ 23-477 - Notice requesting investigation
§ 23-479 - Hearing rights and procedures
§ 23-480 - Decisions of administrative law judge; contents; disposition and effect
§ 23-481 - Decision upon review
§ 23-482 - Time for compliance with order; extension of time; effect of orders
§ 23-484 - Nonimpairment of other agencies
§ 23-485 - Special inspectors; civil liability
§ 23-486 - Boiler advisory board; members; terms; meetings
§ 23-487 - Political subdivision jurisdiction
§ 23-488 - Division inspection service
§ 23-491.02 - Owner's and operator's duty
§ 23-491.03 - Existing conveyances
§ 23-491.04 - Commission powers and duties
§ 23-491.06 - Development of standards and regulations
§ 23-491.07 - Certificate of inspection
§ 23-491.08 - Notice requesting investigation; confidentiality; determination of grounds
§ 23-491.10 - Hearing rights and procedures
§ 23-491.11 - Decisions of administrative law judge; contents; disposition and effect
§ 23-491.12 - Decision upon review
§ 23-491.13 - Effective date of orders; time for compliance; effect of orders
§ 23-491.15 - Nonimpairment of other agencies
§ 23-493.01 - Collection of samples
§ 23-493.02 - Scheduling of tests
§ 23-493.03 - Testing procedures
§ 23-493.04 - Testing policy requirements
§ 23-493.05 - Disciplinary procedures
§ 23-493.06 - Employer protection from litigation
§ 23-493.07 - Causes of action based on test results
§ 23-493.08 - Limits to causes of action
§ 23-493.09 - Confidentiality of results; access to records
§ 23-493.10 - Construction; collective bargaining
§ 23-493.11 - Effect of mandatory testing obligations
§ 23-494 - Noncompete clause prohibition; broadcast employees; definitions
§ 23-495.01 - Voluntary veterans' performance employment policy; private employers; eligibility
§ 23-502 - Rehabilitation services
§ 23-503.01 - Coordination of vocational rehabilitation services
§ 23-504 - Merchandising businesses for the blind
§ 23-506 - Eligibility for assistance
§ 23-508 - Administrative funds
§ 23-553 - Day labor service agency; third party employer; duties
§ 23-562 - Professional employer agreements; rights; notice
§ 23-563 - Registration requirements; confidentiality
§ 23-564 - Initial registration; fee
§ 23-565 - Renewal registration; fee
§ 23-567 - Limited registration; fee
§ 23-568 - Alternative registration; fee
§ 23-569 - Financial capability; bonding; exception
§ 23-571 - Tax obligations and incentives
§ 23-572 - Services not insurance
§ 23-574 - Covered employees; licensing
§ 23-575 - Violations; classification; civil penalties; rules
§ 23-576 - Professional employer organization fund; use; exemption
§ 23-601 - Declaration of policy
§ 23-602 - Definitions of words and phrases
§ 23-603 - Agricultural labor; definitions; exemption
§ 23-603.01 - American employer
§ 23-604 - Annual payroll and average annual payroll
§ 23-606 - Base-period employers
§ 23-609.01 - Hearing officers
§ 23-613.01 - Employee; definition; exempt employment
§ 23-615 - Employment; definition
§ 23-615.01 - Political subdivision or instrumentality employment
§ 23-617 - Exempt employment; definition
§ 23-618.02 - Institution of higher education
§ 23-619.01 - Misconduct connected with the employment; wilful misconduct; evaluation
§ 23-621 - Unemployed; definition
§ 23-624 - Plan maintained by an employer
§ 23-625.01 - Definition of debtor
§ 23-625.02 - Definition of internal revenue code
§ 23-628 - Extended benefit period
§ 23-630 - On and off indicators
§ 23-631 - Rate of insured unemployment; definition
§ 23-632 - Definition of regular benefits
§ 23-633 - Definition of state law
§ 23-634 - Eligibility requirements for extended benefits
§ 23-635 - Weekly extended benefit amount
§ 23-636 - Total extended benefit amount; certain adjustments
§ 23-637 - Beginning and termination of extended benefit period
§ 23-638 - Credits and charges to employer accounts
§ 23-639 - Applicability of other articles
§ 23-642 - Compromise of claims for contributions
§ 23-643 - Extensions of time; regulations
§ 23-644 - Reciprocal arrangements
§ 23-645 - State-federal cooperation
§ 23-649 - Acquisition of lands and buildings
§ 23-652 - Publications by commission
§ 23-654 - Availability of records to foreign agency
§ 23-656 - Enforcement of chapter
§ 23-657 - Violations; classification
§ 23-921 - Administration of chapter
§ 23-926 - Inspection of employer records; noncompliance by employer; penalty
§ 23-927 - Power to enter places of employment
§ 23-928 - Investigation by agents
§ 23-929 - Enforcement of chapter
§ 23-930 - Unfair claim processing practices; bad faith; civil penalties
§ 23-932 - Violations; classification
§ 23-933 - Priority of judgment against assets of employer
§ 23-673 - Determination of claim on unemployment due to labor dispute
§ 23-674 - Procedure in rendering decisions and orders; rights of parties; representation
§ 23-675 - Depositions; oaths; attendance of witnesses; production of papers
§ 23-676 - Failure to obey commission subpoena; classification
§ 23-677 - Contempt by contumacy or refusal to obey subpoena of commission
§ 23-680 - Notices of hearings
§ 23-681 - Changing hearing date; good cause
§ 23-682 - Service of documents by electronic means
§ 23-701 - Unemployment compensation fund; administration; composition
§ 23-702 - Custody of unemployment compensation fund
§ 23-705 - Special administration fund
§ 23-706 - Use of special administration fund; transfer of monies
§ 23-707 - Employment security administration fund
§ 23-708 - Reimbursement of employment security administration fund
§ 23-709 - Employment service account
§ 23-721 - Work records kept by employing unit; inspection by commission
§ 23-722.02 - Employer request; employee disclosure; violation; classification; requirements
§ 23-722.03 - Memorandum of understanding; retention; use; definition
§ 23-722.04 - Unemployment insurance information; disclosure; violation; classification
§ 23-723 - Penalties for failure to file timely or complete contribution and wage reports
§ 23-724 - Liability determinations; review; finality
§ 23-725 - Employer coverage; termination; election of coverage
§ 23-726 - Contributions; voluntary payment
§ 23-727 - Credits and charges to employer accounts
§ 23-728 - Standard rate of contribution
§ 23-729 - Change from the standard contribution rate
§ 23-730 - Variation and adjustment of contribution rates
§ 23-733.01 - Assignments of rates; transfers of experience; violation; civil penalty; definitions
§ 23-734 - Agreement by employee to pay employer contribution void
§ 23-736 - Interest on past due contributions; deposit of interest
§ 23-737 - Collection of contributions or interest; precedence of action
§ 23-737.01 - Collection of amounts due by certificate for judgment
§ 23-737.02 - Recovery of collection costs; fee for bad checks
§ 23-738 - Delinquency assessments; interest and penalties; petition for reassessment
§ 23-738.01 - Deficiency assessment; petition for reassessment
§ 23-739 - Jeopardy assessment; petition for reassessment
§ 23-740 - Procedure on petition for reassessment
§ 23-741 - Payment of amounts in dispute
§ 23-742 - Adjustment or refund of contribution; limitation
§ 23-744 - Priority of claim for contributions due upon insolvency proceedings
§ 23-745 - Lien for unpaid contributions, interest and penalties
§ 23-746 - Superiority of lien; notice
§ 23-746.01 - Release or subordination of lien
§ 23-747 - Release of lien; bond; foreclosure and judgment against surety
§ 23-748 - Effect upon lien of transfer of assets by delinquent
§ 23-750 - Special provisions for nonprofit organizations and state and local governments
§ 23-752 - Levy assessment and distraint
§ 23-753 - Surrender of property subject to levy; definition
§ 23-754 - Production of books
§ 23-755 - Property exempt from levy
§ 23-756 - Notice and sale of seized property
§ 23-757 - Authority to release levy and return property
§ 23-762 - Requirements of shared work plan; approval
§ 23-763 - Shared work benefits; eligibility; requirements
§ 23-766 - Other provisions of this chapter; department regulations; applicability
§ 23-771 - Eligibility for benefits
§ 23-771.01 - Approved training; definitions
§ 23-771.02 - Training program
§ 23-773 - Examination and determination of claims
§ 23-774 - Documentation of benefit eligibility
§ 23-775 - Disqualification from benefits
§ 23-778 - Disqualification from benefits for fraud
§ 23-780 - Duration and amount of benefits; definition
§ 23-781 - Denial of benefits to certain athletes and aliens
§ 23-782 - Payment of benefits
§ 23-784 - Agreement for waiver of rights void
§ 23-788 - Recovery of trade act overpayments
§ 23-789 - Recovery of child support obligations; definitions
§ 23-789.01 - Recovery of uncollected overissuance of food stamp coupons; definitions
§ 23-791 - Benefits reduced by pension payment; definition
§ 23-792 - Voluntary withholding; income tax
§ 23-793 - Qualified transient lodging employment; definition
§ 23-794 - School bus contractors with educational institutions; definition
§ 23-795 - Contract educational providers; definition
§ 23-796 - Services for a charter school; benefits
§ 23-798 - Reservation of legislative authority; no vested rights
§ 23-799.01 - Fraud prevention; report
§ 23-801 - Liability of employer
§ 23-802 - Declaration of policy
§ 23-803 - Hazardous occupations
§ 23-804 - Posting of notices by employer
§ 23-805 - Right of action for damages; two-year limitation
§ 23-807 - Agreement exempting employer from liability void; setoffs by employer
§ 23-808 - Limitation on attorney's fee; violation; classification
§ 23-901.01 - Occupational disease; proximate causation; definition
§ 23-901.02 - Liability of last employer; exception
§ 23-901.06 - Volunteer workers
§ 23-901.07 - Persons with disabilities in vocational training; definition
§ 23-901.08 - Professional employer organizations
§ 23-901.09 - Presumption; cancers; firefighters and fire investigators; applicability; definitions
§ 23-902 - Employers subject to chapter; exceptions
§ 23-903 - Application of chapter to persons engaged in interstate commerce; limitation
§ 23-905 - Minor employees; limitation on payment of lump sum award; additional compensation
§ 23-909 - Motion picture exemption
§ 23-910 - Exemption for licensees
§ 23-941 - Hearing rights and procedure
§ 23-941.01 - Settlement of claims; full and final; exception; definitions
§ 23-941.02 - Vexatious litigants; designation; definitions
§ 23-941.03 - Settlement of claims; supportive medical maintenance benefits; definition
§ 23-942 - Awards of administrative law judge; contents; disposition and effect
§ 23-944 - Effective date of orders; time for compliance; effect of orders
§ 23-945 - Petition for hearing on validity of order; procedure; substitution of order
§ 23-946 - Action asserting invalidity of order; limitation; venue and procedure
§ 23-946.01 - Stay of court proceedings pending determination of issues by commission
§ 23-947 - Time within which hearing must be requested; definition
§ 23-949 - Effect of action concerning order; procedure to stay order
§ 23-950 - Priority of actions
§ 23-952 - Continuation of order or award pending hearing or appeal
§ 23-953 - Notice of award; effect of petition for hearing or appeal; overpayment
§ 23-954 - Payment of interest on awards
§ 23-961 - Methods of securing compensation by employers; deficit premium; civil penalty
§ 23-961.01 - Self-insurance pools
§ 23-962 - Insurance by governmental units; payment of premiums
§ 23-963 - Provisions of compensation insurance policy
§ 23-963.01 - Policies with deductible coverage; medical-only loss
§ 23-964 - Posting notice of compliance with compensation law
§ 23-966 - Failure of employer to pay claim or comply with commission order; reimbursement of funds
§ 23-967 - Deduction of premium from employee wage or salary; violation; classification
§ 23-968 - Notification to employer by carrier
§ 23-969 - Satisfaction of lien; release
§ 23-971 - Firefighter and fire investigator cancer claim information; data sharing; definitions
§ 23-1001 - Delivery of insurance contract or policy to employer
§ 23-1021 - Right of employee to compensation
§ 23-1021.01 - Peace officers; fire fighters; employment status
§ 23-1023 - Liability of third person to injured employee; election of remedies
§ 23-1024 - Choice of remedy as waiver of alternate remedy
§ 23-1027 - Compensation precluded by neglect or refusal of employee to submit to treatment
§ 23-1029 - Repeal of chapter; effect on rights of parties
§ 23-1030 - Effect on employers' liability law
§ 23-1031 - Persons incarcerated; suspension of benefits
§ 23-1041 - Basis for computing compensation; definition
§ 23-1042 - Basis for computing average monthly wage of minor permanently incapacitated
§ 23-1043 - Hernias classified for compensation purposes
§ 23-1043.01 - Heart-related and mental cases
§ 23-1043.02 - Human immunodeficiency virus; establishing exposure; definition
§ 23-1043.03 - Hepatitis C; establishing exposure; definition
§ 23-1044 - Compensation for partial disability; computation
§ 23-1045 - Compensation for total disability; permanent total disability defined
§ 23-1048 - Reasonable accommodations; earning capacity determination; definitions
§ 23-1061.01 - Treatment by prayer or spiritual means
§ 23-1062.03 - Evidence-based medical treatment guidelines
§ 23-1063 - Apportionment of compensation
§ 23-1064 - Presumptions of dependency; determination
§ 23-1065 - Special fund; purposes; investment committee
§ 23-1066 - Minor or incompetent claimant; appointment of guardian ad litem; procedure
§ 23-1067 - Commutation of compensation to lump sum payment
§ 23-1069 - Attorney's fees; payment; time limitation
§ 23-1070 - Medical, surgical and hospital benefits provided by employer; pilot program
§ 23-1070.01 - Request for early hearing; stipulation; action of commission
§ 23-1072 - Autopsy in death claims; effect of refusal by claimant
§ 23-1073 - Processing of prior claims
§ 23-1081 - Administrative fund; purposes and administration
§ 23-1091 - Assigned risk plan
§ 23-1101 - Definition of report
§ 23-1102 - Workers' compensation presumptions of compensability; report
§ 23-1103 - Impact of presumptions; liability
§ 23-1104 - Report procedures and deadlines
§ 23-1105 - Heart-related, perivascular and pulmonary cases; firefighters; presumption; definition
§ 23-1306 - Civil liability of person violating article
§ 23-1307 - Injunctive relief from injury resulting from violation of article
§ 23-1322 - Unlawful picketing
§ 23-1323 - Injunctive relief; damages
§ 23-1324 - Violations; classification
§ 23-1325 - Defamation; damages
§ 23-1327 - Unlawful mass assembly
§ 23-1328 - Trespassory assembly
§ 23-1329 - Publicizing enjoined picketing or assembly; prohibition
§ 23-1361 - Blacklist; definition; exceptions; privileged communications; immunity
§ 23-1362 - Blacklisting; classification
§ 23-1381 - Declaration of policy
§ 23-1383 - Rights of employees
§ 23-1384 - Rights of employer
§ 23-1385 - Unfair labor practices; definition
§ 23-1386 - Agricultural employment relations board; members; terms; appointment
§ 23-1388 - Officers and employees of the board
§ 23-1389 - Representatives and elections
§ 23-1390 - Prevention of unfair labor practices
§ 23-1391 - Investigatory powers
§ 23-1392 - Violation; classification
§ 23-1393 - Court jurisdiction
§ 23-1411 - Public safety employee organizational rights; definition
§ 23-1502 - Constructive discharge
§ 23-1601 - Declaration of independent business status
§ 23-1602 - Determination of employment relationship; prohibition
§ 23-1603 - Qualified marketplace contractors; definitions
§ 23-1605 - Motor carriers; employment status; safety improvement; definitions
§ 23-1702 - Municipal firefighter cancer reimbursement fund; exemption; rulemaking; annual report