2023 Indiana Code › Title 22. Labor and Safety › Article 4. Unemployment Compensation System › Chapter 32. Employer Liability, Rights, and Remedies › 22-4-32-21. Successor Employer; Notice of Purchase; Account Clearance Statements; Liability for Contributions; Liens

Sec. 21. (a) Any individual, group of individuals, or other legal entity, whether or not an employing unit which acquires all or part of the organization, trade, or business within this state of an employer or which acquires all or part of the assets of the organization, trade or business, shall notify the commissioner in the form and manner prescribed by the department not later than five (5) days prior to the acquisition.
(b) Unless the notice is given, the commissioner shall have the right to proceed against either the predecessor or successor, in personam or in rem, for the collection of contributions and interest due or accrued and unpaid by the predecessor, as of the date of the acquisition, and the amount of the liability shall, in addition, be a lien against the property or assets so acquired which shall be prior to all other liens. However, the lien shall not be valid as against one who acquires from the successor any interest in the property or assets in good faith, for value and without notice of the lien.
(c) On request in the form and manner prescribed by the department after the acquisition is completed, the commissioner shall furnish the successor with a statement of the amount of contributions and interest due or accrued and unpaid by the predecessor as of the date of the acquisition, and the liability of the successor and the amount of the lien shall in no event exceed the reasonable value of the property or assets acquired by the successor from the predecessor or the amount disclosed by the statement, whichever is the lesser.
(d) An acquirer described in subsection (a) or a professional employer organization under IC 22-4-6.5 may file a request for clearance in the form and manner prescribed by the department at least five (5) business days before an acquisition or transfer. After filing a request, the acquirer or professional employer organization is entitled to receive a statement indicating whether an account being acquired or transferred is in good standing with the department as of the date of the transfer. If the statement shows that the account that is being acquired or transferred is in good standing with the department at the time of the transfer, and the department later discovers an outstanding liability associated with the acquired or transferred account, the department:
(1) may not assess a delinquent employer rate modification under IC 22-4-11-2 based on the account for which a statement was made under this subsection; and
(2) in the case of a PEO, shall administratively separate the acquired or transferred client account from the PEO until the liability is recovered.
(e) The remedies prescribed by this section are in addition to all other existing remedies against the predecessor or successor.
Formerly: Acts 1947, c.208, s.3323; Acts 1951, c.295, s.24 1/2. As amended by P.L.18-1987, SEC.94; P.L.5-1988, SEC.114; P.L.21-1995, SEC.126; P.L.33-2013, SEC.5; P.L.122-2019, SEC.45.