What is an employing unit that has acquired the organization or assets of another employer called?

An employing unit that has acquired the organization or assets of another employer is referred to as a total successor. This designation is significant because it indicates that the new employer has assumed responsibility for the previous employer’s liabilities and obligations, particularly concerning employees and workforce issues.

When a total successor takes over an organization, they are often liable for debts, such as employee benefits, W-2 wage records, and other employment-related liabilities. This can include the continuation of any existing liability for employee claims or legal issues.

Understanding the concept of a total successor is crucial for navigating labor laws and the intricacies of how employers acquire assets or organizations, as it plays a vital role in ensuring continuity of employment and upholding employee rights during such transitions. This term contrasts with others such as partial successor, which may imply that only certain portions of the duties and liabilities are transferred, or co-employer, which indicates a shared relationship with employment responsibilities rather than outright acquisition. The employer of record refers to the entity that has the legal responsibility for employing personnel, which does not directly capture the essence of acquiring another employer's organization or assets.