Delaware Code Title 19. Labor § 3353. Transfers of experience and assignment of rates

(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is any common ownership, management or control of the employers, then the unemployment experience attributable to the transferred trade or business shall be transferred to the employer to whom such business is so transferred.  The rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of trade or business.

(2) Whenever a person who is not an employer under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to such person if the Department finds that such person acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions.  Instead, such person shall be assigned the applicable new employer rate under § 3348 of this title.  In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the Department shall use objective factors which may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long such business enterprise was continued, or whether new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.

(4) The Department shall establish procedures to identify the transfer or acquisition of a business for purposes of this section.

(5) For purposes of this section:

(6) This section shall be interpreted and applied in such a manner as to meet the minimum requirements contained in any guidance or regulations issued by the United States Department of Labor.