Home Solution Pros, LLC v. Russell Fry, Acting Executive Director, Workforce West Virginia, Unemployment Compensation Division

Summary

The Supreme Court of Appeals of West Virginia affirmed a circuit court order upholding the determination that Home Solution Pros, LLC was a successor employer to Quality Home Solutions, LLC. The court concluded that common management and ownership, shared business addresses and members, and the transfer of employees supported successor-employer status under West Virginia law. The court also upheld the finding that Home Solution Pros was liable for SUTA dumping because it was established primarily to obtain a lower unemployment contribution rate.

Holdings

1. Home Solution Pros was a successor employer because it acquired, by sale or otherwise, the entire organization, trade or business, or substantially all of the assets of Quality Home Solutions.
2. Home Solution Pros was liable for SUTA dumping under West Virginia Code § 21A-5-10c because common ownership existed and the evidence showed that the company was established solely or primarily to obtain a lower unemployment contribution rate.
3. The circuit court did not err in affirming Workforce West Virginia's determination because the agency's decision was supported by the applicable statutes and the undisputed record.

Questions Presented

1. Whether Home Solution Pros was a successor employer under West Virginia Code § 21A-1A-26 because it acquired, by sale or otherwise, the entire organization, trade or business, or substantially all of the assets of Quality Home Solutions.
2. Whether Home Solution Pros was liable for SUTA dumping under West Virginia Code § 21A-5-10c based on common ownership, management, or control and the purpose of obtaining a lower contribution rate.
3. Whether the circuit court erred by affirming Workforce West Virginia's administrative determination.

Disposition

affirmed