Wis. Admin. Code Department of Workforce Development DWD 115.08 - Owned, managed, or controlled in substantial part; the same interest or interests; employed substantially the same employees

(1) OWNED, MANAGED, OR CONTROLLED IN SUBSTANTIAL PART. The conditions of s. DWD 115.05(1) are satisfied if 50% or more of both entities are owned, managed, or controlled, either directly or indirectly, by the same interest or interests.

(2) THE SAME INTEREST OR INTERESTS. The department shall presume, unless shown to the contrary, that the same interest or interests includes the spouse, child or parent of the individual who owned, managed, or controlled the business, or any combination of more than one of them. To overcome the presumption that these are the same interest or interests, all of the following shall be established:

(a) Usual and customary sales procedures were followed.

(b) All transactions were at fair market value and similar to those available to unrelated parties under similar circumstances.

(c) The spouse, child or parent of the individual who owned, managed, or controlled the business was not employed by the business in the 12-month period before the transfer in a position in which the spouse, child or parent of the individual was able to make management decisions.

(d) The individual who owned, managed, or controlled the business before the transfer has no ownership interest, either directly or indirectly, in the transferee.

(e) The individual who owned, managed, or controlled the business before the transfer is not employed by the transferee in a position in which the individual is able to make management decisions.

(3) EMPLOYED SUBSTANTIALLY THE SAME EMPLOYEES. The conditions of s. DWD 115.05(2), 115.06(1) (b) or 115.07(1) (c) that the transferee has employed substantially the same employees as those the transferor had employed are met if 50% or more of the employees employed by the transferor in connection with the business transferred work for the transferee.

Notes

Wis. Admin. Code Department of Workforce Development DWD 115.08

Cr. Register, January, 1992, No. 433, eff. 2-1-92. Amended by, CR 18-033: am. (title), (1), (2) Register May 2019 No. 761, eff. 6/1/2019