Section 115.08. Owned or controlled in substantial part; the same interest or interests; employed substantially the same employees.

 

(1)   Owned or controlled in substantial part. The conditions of s. DWD 115.04 (1) are satisfied if 50% or more of both entities are owned 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 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, it must be established that:

(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 or controlled the business was not employed by the business in the 12-month period prior to the transfer in a position in which he or she was able to make management decisions;

(d) The individual who owned or controlled the business prior to the transfer has no ownership interest, either directly or indirectly, in the transferee; and

(e) The individual who owned or controlled the business prior to the transfer is not employed by the transferee in a position in which he or she 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.

History: Cr. Register, January, 1992, No. 433 , eff. 2-1-92.