diff --git a/src/app/Domain.php b/src/app/Domain.php
--- a/src/app/Domain.php
+++ b/src/app/Domain.php
@@ -191,24 +191,20 @@
             return;
         }
 
+        // if we have confirmed ownership of or management access to the domain, then we have
+        // also confirmed the domain exists in DNS.
         if ($new_status & self::STATUS_CONFIRMED) {
-            // if we have confirmed ownership of or management access to the domain, then we have
-            // also confirmed the domain exists in DNS.
-            $new_status |= self::STATUS_VERIFIED;
-            $new_status |= self::STATUS_ACTIVE;
+            $new_status |= self::STATUS_VERIFIED | self::STATUS_ACTIVE;
         }
 
-        if ($new_status & self::STATUS_DELETED && $new_status & self::STATUS_ACTIVE) {
-            $new_status ^= self::STATUS_ACTIVE;
-        }
-
-        if ($new_status & self::STATUS_SUSPENDED && $new_status & self::STATUS_ACTIVE) {
-            $new_status ^= self::STATUS_ACTIVE;
+        // it can't be deleted-or-suspended and active
+        if ($new_status & self::STATUS_DELETED || $new_status & self::STATUS_SUSPENDED) {
+            $new_status &= ~self::STATUS_ACTIVE;
         }
 
         // if the domain is now active, it is not new anymore.
-        if ($new_status & self::STATUS_ACTIVE && $new_status & self::STATUS_NEW) {
-            $new_status ^= self::STATUS_NEW;
+        if ($new_status & self::STATUS_ACTIVE) {
+            $new_status &= ~self::STATUS_NEW;
         }
 
         $this->attributes['status'] = $new_status;
diff --git a/src/app/Http/Controllers/RelationController.php b/src/app/Http/Controllers/RelationController.php
--- a/src/app/Http/Controllers/RelationController.php
+++ b/src/app/Http/Controllers/RelationController.php
@@ -108,7 +108,8 @@
 
         $with_ldap = \config('app.with_ldap');
 
-        $state['isReady'] = (!isset($state['isImapReady']) || $state['isImapReady'])
+        $state['isReady'] = (!isset($state['isActive']) || $state['isActive'])
+            && (!isset($state['isImapReady']) || $state['isImapReady'])
             && (!$with_ldap || !isset($state['isLdapReady']) || $state['isLdapReady'])
             && (!isset($state['isVerified']) || $state['isVerified'])
             && (!isset($state['isConfirmed']) || $state['isConfirmed']);
diff --git a/src/app/Observers/DomainObserver.php b/src/app/Observers/DomainObserver.php
--- a/src/app/Observers/DomainObserver.php
+++ b/src/app/Observers/DomainObserver.php
@@ -89,19 +89,8 @@
      */
     public function restoring(Domain $domain)
     {
-        // Make sure it's not DELETED/LDAP_READY/SUSPENDED
-        if ($domain->isDeleted()) {
-            $domain->status ^= Domain::STATUS_DELETED;
-        }
-        if ($domain->isLdapReady()) {
-            $domain->status ^= Domain::STATUS_LDAP_READY;
-        }
-        if ($domain->isSuspended()) {
-            $domain->status ^= Domain::STATUS_SUSPENDED;
-        }
-        if ($domain->isConfirmed() && $domain->isVerified()) {
-            $domain->status |= Domain::STATUS_ACTIVE;
-        }
+        // Reset the status
+        $domain->status = Domain::STATUS_NEW;
 
         // Note: $domain->save() is invoked between 'restoring' and 'restored' events
     }
diff --git a/src/app/Observers/GroupObserver.php b/src/app/Observers/GroupObserver.php
--- a/src/app/Observers/GroupObserver.php
+++ b/src/app/Observers/GroupObserver.php
@@ -72,18 +72,8 @@
      */
     public function restoring(Group $group)
     {
-        // Make sure it's not DELETED/LDAP_READY/SUSPENDED anymore
-        if ($group->isDeleted()) {
-            $group->status ^= Group::STATUS_DELETED;
-        }
-        if ($group->isLdapReady()) {
-            $group->status ^= Group::STATUS_LDAP_READY;
-        }
-        if ($group->isSuspended()) {
-            $group->status ^= Group::STATUS_SUSPENDED;
-        }
-
-        $group->status |= Group::STATUS_ACTIVE;
+        // Reset the status
+        $group->status = Group::STATUS_NEW;
 
         // Note: $group->save() is invoked between 'restoring' and 'restored' events
     }
diff --git a/src/app/Observers/UserObserver.php b/src/app/Observers/UserObserver.php
--- a/src/app/Observers/UserObserver.php
+++ b/src/app/Observers/UserObserver.php
@@ -140,21 +140,8 @@
      */
     public function restoring(User $user)
     {
-        // Make sure it's not DELETED/LDAP_READY/IMAP_READY/SUSPENDED anymore
-        if ($user->isDeleted()) {
-            $user->status ^= User::STATUS_DELETED;
-        }
-        if ($user->isLdapReady()) {
-            $user->status ^= User::STATUS_LDAP_READY;
-        }
-        if ($user->isImapReady()) {
-            $user->status ^= User::STATUS_IMAP_READY;
-        }
-        if ($user->isSuspended()) {
-            $user->status ^= User::STATUS_SUSPENDED;
-        }
-
-        $user->status |= User::STATUS_ACTIVE;
+        // Reset the status
+        $user->status = User::STATUS_NEW;
 
         // Note: $user->save() is invoked between 'restoring' and 'restored' events
     }
diff --git a/src/tests/Feature/DomainTest.php b/src/tests/Feature/DomainTest.php
--- a/src/tests/Feature/DomainTest.php
+++ b/src/tests/Feature/DomainTest.php
@@ -328,8 +328,9 @@
         $this->assertFalse($domain->isDeleted());
         $this->assertFalse($domain->isSuspended());
         $this->assertFalse($domain->isLdapReady());
-        $this->assertTrue($domain->isActive());
-        $this->assertTrue($domain->isConfirmed());
+        $this->assertFalse($domain->isActive());
+        $this->assertFalse($domain->isConfirmed());
+        $this->assertTrue($domain->isNew());
 
         // Assert entitlements
         $this->assertTrue($ent2->fresh()->trashed());
diff --git a/src/tests/Feature/GroupTest.php b/src/tests/Feature/GroupTest.php
--- a/src/tests/Feature/GroupTest.php
+++ b/src/tests/Feature/GroupTest.php
@@ -163,11 +163,16 @@
         Queue::fake();
 
         $user = $this->getTestUser('user-test@kolabnow.com');
-        $group = $this->getTestGroup('group-test@kolabnow.com');
+        $group = $this->getTestGroup('group-test@kolabnow.com', [
+                'status' => Group::STATUS_ACTIVE | Group::STATUS_LDAP_READY | Group::STATUS_SUSPENDED,
+        ]);
         $group->assignToWallet($user->wallets->first());
 
         $entitlements = \App\Entitlement::where('entitleable_id', $group->id);
 
+        $this->assertTrue($group->isSuspended());
+        $this->assertTrue($group->isLdapReady());
+        $this->assertTrue($group->isActive());
         $this->assertSame(1, $entitlements->count());
 
         $group->delete();
@@ -185,7 +190,8 @@
         $this->assertFalse($group->isDeleted());
         $this->assertFalse($group->isSuspended());
         $this->assertFalse($group->isLdapReady());
-        $this->assertTrue($group->isActive());
+        $this->assertFalse($group->isActive());
+        $this->assertTrue($group->isNew());
 
         $this->assertSame(1, $entitlements->count());
         $entitlements->get()->each(function ($ent) {
diff --git a/src/tests/Feature/UserTest.php b/src/tests/Feature/UserTest.php
--- a/src/tests/Feature/UserTest.php
+++ b/src/tests/Feature/UserTest.php
@@ -1121,7 +1121,8 @@
         $this->assertFalse($userA->isSuspended());
         $this->assertFalse($userA->isLdapReady());
         $this->assertFalse($userA->isImapReady());
-        $this->assertTrue($userA->isActive());
+        $this->assertFalse($userA->isActive());
+        $this->assertTrue($userA->isNew());
 
         $this->assertTrue($userB->fresh()->trashed());
         $this->assertTrue($domainB->fresh()->trashed());