Laauwe v. Board of Review, Department of Labor

A-3676-97T5 (N.J. Super. App. Div. 1999) (Unpublished)
  • Opinion Date: June 28, 1999

CORPORATIONS; SHAREHOLDERS; UNEMPLOYMENT COMPENSATION—A person holding more than a five percent equitable or debt interest in a corporation is not eligible for unemployment benefits.

A vice-president of a corporation was terminated as an employee and then filed a claim for unemployment compensation. At the time of filing, claimant owned approximately eight percent of the total issued and outstanding shares of the company. The claimant’s application for unemployment benefits was denied because of this stock ownership. N.J.S. 43:21-19(m)(1)(A), specifically states that “a person who has more than a 5% equitable or debt interest in the corporation, whose claim for benefits is based on wages with that corporation shall not be deemed to be unemployed in any week during the individual’s term of office or ... ownership in the corporation.” This language left no room for interpretation and the claim was denied.