When a business changes ownership, but continues to operate in substantially the same form, the WCB will transfer the experience and assessment rates from the old employer to the new employer. Doing so ensures that assessment rates for the new employer reflect the experience of the ongoing business and encourages the new employer to return to work any workers injured while the business was owned by the previous employer. There are other times when a change in ownership does not represent a continuation of the same business and therefore the transfer of experience and assessment rates does not occur.
This policy establishes criteria for when an employer's cost experience will follow the business on a change in ownership and be used to determine assessment rates for the new employer. It is important to distinguish between when a business ceases to operate and when all or part of a business continues in substantially the same form under new ownership because the WCB sets assessment rates based, in part, on employer cost experience.