Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
IN RE: the Claim of Beverley A. WALTERS, Appellant. Commissioner of Labor, Respondent.
Appeal from a decision of the Unemployment Insurance Appeal Board, filed June 13, 2005, which ruled that claimant was ineligible to receive unemployment insurance benefits because she was not totally unemployed.
Claimant filed an application for unemployment insurance benefits effective January 31, 2005. At the time, she was a corporate officer and 51% shareholder of a corporation she started with a partner in March 2003. The corporation's business entailed bidding on large copying and printing jobs, primarily through the use of the Internet, and subcontracting these jobs to other companies. The Unemployment Insurance Appeal Board ruled that, due to claimant's involvement in the corporation, she was not totally unemployed and was, therefore, ineligible to receive benefits. Claimant appeals.
We affirm. It is well settled that a claimant who is the principal of a corporation will not be considered totally unemployed even if the business is not actively functioning and the claimant's participation is minimal (see Matter of Meyer [Commissioner of Labor], 308 A.D.2d 644, 644, 764 N.Y.S.2d 291 [2003] ). Benefits will be precluded if the claimant stands to benefit financially from the corporation's continued existence (see Matter of Dolcater [Commissioner of Labor], 307 A.D.2d 583, 584, 762 N.Y.S.2d 312 [2003]; Matter of McHugh [Commissioner of Labor], 305 A.D.2d 923, 924, 759 N.Y.S.2d 813 [2003] ). Here, although the corporation was not actively seeking bids during the time period in question, claimant remained a signatory on the corporate checking account, wrote at least one check and visited the corporate office, which was equipped with a desk, computer and telephone, once a week to check messages. Claimant testified that the corporation was awaiting certification as a minority business before resuming active operations. Inasmuch as claimant clearly stood to gain financially from her continued affiliation with the corporation even though she was not receiving income, substantial evidence supports the Board's decision.
ORDERED that the decision is affirmed, without costs.
Thank you for your feedback!
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes visit FindLaw's Learn About the Law.
Decided: July 06, 2006
Court: Supreme Court, Appellate Division, Third Department, New York.
Search our directory by legal issue
Enter information in one or both fields (Required)
Harness the power of our directory with your own profile. Select the button below to sign up.
Learn more about FindLaw’s newsletters, including our terms of use and privacy policy.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)