N.J. Admin. Code § 12:17-12.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 12:17-12.1 - Corporate officers, owners and creditors

(a) An officer of a corporation and/or a person who has more than five percent equitable or debt interest in the corporation, whose claim for benefits is based on wages with that corporation, shall not be considered unemployed in any week during the individual's term of office or ownership in the corporation and the claim shall be determined invalid.

1. An equitable interest in the corporation is defined as the ownership of the corporate stock.

2. A debt interest in the corporation is defined as being a creditor of the corporation.

3. A corporation is considered viable unless it has permanently ceased operations and has filed for formal dissolution in accordance with the New Jersey Business Corporation Act, 14A:1-1 et seq.; or has filed for bankruptcy under Chapter 7 of the United States Bankruptcy Code.

(b) If an individual is determined ineligible for benefits, and if he or she has sufficient earnings in other employment to qualify for a valid claim, an adjusted monetary determination shall be made based solely on such employment. Benefits can be payable based on the adjusted monetary determination, provided he or she otherwise meets all other eligibility requirements for unemployment insurance benefits.

N.J. Admin. Code § 12:17-12.1

Amended by R.2003 d.276, effective 7/7/2003.
See: 35 New Jersey Register 1527(a), 35 New Jersey Register 2874(b).
In (a), substituted "permanently ceased operations and has filed for formal dissolution" for "been dissolved" in 3; added (b).