WAC 296-17-90431

Change of ownership

Your responsibility

If you change the legal structure of your business or sell your business

You must:

  • Notify us promptly in writing of this change.
Note: If the change in ownership is limited to a change in legal structure, we may allow the new entity to continue to be a member of the group without a new application. If on the other hand the change results in new ownership, the new owner(s) will need to reapply if they want to participate in the group plan.

Example: A business operated as a sole proprietorship changes their legal structure to a corporation. Assuming the sole proprietor owner owns more than fifty percent of the stock in the corporation, we would allow this business to continue to be a member of the group without a new application.

Our responsibility

Upon receipt of your notification

We will:

  • Determine if you need to complete a new application form to continue participation in the retro group.
  • Notify the sponsoring organization of the change in the legal structure of your business and whether or not a new application will be needed for the member.

Sponsoring organization's responsibility

If L&I requires a new application for a member

You must:

  • Secure the new application from the member and forward it to L&I by the date indicated on the application.
Note: If we do not receive the application by the due date, the employer will not be enrolled in your retro group.

[Statutory Authority: RCW 51.18.010(1) (www.leg.wa.gov). 02-23-089, § 296-17-90431, filed 11/20/02, effective 1/1/03.]

Important! This rule applies to retro coverage period(s) established prior to January 1, 2011.

The courts can take judicial notice of the Washington Administrative Code (WAC) only as published by the Office of the Code Reviser (www.leg.wa.gov). The text contained in this Web page may reflect minor changes when compared with the WAC.

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