Section 135.1 Of Article 2. General Definitions From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 1. >> Article 2.
135.1
. (a) A new employing unit shall not be created when there is
an acquisition or change in the form or organization of an existing
business enterprise, or severable portion thereof, and there is a
continuity of control of the business enterprise.
(b) Control of a business enterprise may occur by means of
ownership of the organization conducting the business enterprise,
ownership of assets necessary to conduct the business enterprise,
security arrangements or lease arrangements covering assets necessary
to conduct the business enterprise, or a contract when the
ownership, stated arrangements or contract provide for or allow
direction of the internal affairs or conduct of the business
enterprise.
(c) A continuity of control will exist if one or more persons,
entities, or other organizations controlling the business enterprise
remains in control of the business enterprise after an acquisition or
change in form. Evidence of continuity of control shall include, but
not be limited to, changes of an individual proprietorship to a
corporation, partnership, limited liability company, association, or
estate; a partnership to an individual proprietorship, corporation,
limited liability company, association, estate, or the addition,
deletion, or change of partners; a limited liability company to an
individual proprietorship, partnership, corporation, association,
estate, or to another limited liability company; a corporation to an
individual proprietorship partnership, limited liability company,
association, estate, or to another corporation or from any form to
another form.
(d) An employing unit described in subdivision (a) shall continue
to be the same employer for the purposes of this code as before the
acquisition or change in form.
(e) This section shall not modify the provisions of Article 2
(commencing with Section 1731) of Chapter 7.
(f) This section shall be subject to subdivision (e) of Section
982 and subdivision (d) of Section 1127.5.