No Requirement for Continuous Operation in Order for a Predecessor Successor Relationship to Exist

Section 2765 Section 2765.228  No Requirement for Continuous Operation in Order for a Predecessor Successor Relationship to Exist The employing enterprise that forms the basis for a predecessor successor relationship under Section 1507 of the Act 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 fairgrounds 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.