SB270 Summary

• Amends Section 25-4-8 of the Code of Alabama 1975 to redefine "employing unit" under unemployment compensation law by adding a specific 65 percent threshold to existing acquisition standards.

• An employer acquiring at least 65 percent of an organization, trade, employees, or business located in Alabama (or substantially all assets thereof) of another employing unit now qualifies as an employing unit subject to unemployment compensation.

• Establishes penalties for knowingly violating provisions related to business acquisitions to obtain lower contribution rates, including assignment of highest tax rates for four years or penalty rates up to 2 percent above maximum, and civil monetary penalties up to $10,000 or 10 percent of underreported amounts.

• Allows the director to deny transfer of unemployment experience to persons acquiring a business solely or primarily to obtain lower contribution rates, assigning them new employer rates instead.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.