Title 56 IDES RULES Part 2765
R-109 (05/11)
Section 2765.228 No Requirement For Continuous Operation In Order For A Predecessor Successor Relationship To
ExistT
he employing enterprise which forms the basis for a predecessor successor relationship under Section 1507 of the Act
(Ill. Rev. Stat. 1991, ch. 48, par. 577) is not required to be operated without interruption during the time that predecessor
employing unit is succeeding to the employing enterprises in order for the relationship to exist. However, any
interruption in operations must be reasonable in light of the particular industry and, under no circumstances may exceed
one year.
a) Example: In April, 1991, Mr. Stella purchases a cafe owned by Ms. Pauli. Mr. Stella decides that the cafe must
be remodeled prior to his operating the business. Such remodeling takes three months. This three month gap in
the operation of the cafe does not preclude Mr. Stella from being the successor to Ms. Pauli if the three month
remodeling period is not unreasonable in the restaurant industry.
b) Example: In February, 1991, S Company purchases the concession business at a county fair grounds from P
Company. This business normally operates between May and September. The gap between the date of purchase
and the time that the business begins to operate in May will not preclude S Company from being found to be a
successor to the employing enterprise of P Company.
(Source: Added at 16 Ill. Reg. 12165, effective July 20, 1992)
Section 2765.230 Effect Of A Transfer Of Physical Assets On A Finding That A Predecessor Successor Relationship
Exists
In order for a predecessor successor relationship under Section 1507 of the Act (Ill. Rev. Stat. 1991, ch. 48, par. 577) to
exist, it is not necessary that there be a transfer of physical assets from one employing enterprise to another. However,
when only physical assets are transferred, without the transfer of good will, the assumption of obligation or the
continuation of the enterprises, no predecessor successor relationship exists.
a) Example: Abe and Bill operate a partnership, known as A & B House Painters, which is an employer under the
Act. When the partnership dissolves, Abe retains title to the physical assets which he then sells. Bill, now a sole
proprietor, continues to operate the employing enterprise by continuing to service the customers of the
partnership. Even though he received none of its physical assets, Bill is a successor to the partnership.
b) Example: Alice and Bert operate a partnership, known as A & B House Painters, which is an employer under
the Act. When the partnership dissolves, Alice retains title to the physical assets which she then sells to Clyde
who also operates a house painting business. Clyde does not obtain any of the good will of A & B nor does he
service any of its customers. Clyde is not a successor to A & B.
(Source: Added at 16 Ill. Reg. 12165, effective July 20, 1992)
SUBPART C: BENEFIT CHARGES
Section 2765.325 Application Of "30 Day" Requirement For Determining The Chargeable Employer Pursuant To
Section 1502.1 Of The Act
a) Except as provided in the other subsections of this Section and in Sections 2765.326, 2765.332, 2765.333 and
2765.334, the last employer prior to the beginning of the individual's benefit year (which is defined at Section 242 of
the Act) for whom the individual provided services during at least 30 days beginning with the first day of the
individual's base period (which is defined at Section 237 of the Act) but prior to the beginning of his benefit year
shall be liable for the benefit charges or payments in lieu of contributions, as the case may be, which result from any
benefits paid to that individual.
