Definition Of “Unemployment” In The Context Of Eligibility For Unemployment Insurance Benefits Is Amended

Louisiana Employment Security Law defined “unemployment” for purposes of collecting unemployment compensation benefits, itemizing a number of familial relationships to a principal or controlling stockholder or principal officer of a corporation, partnership, or proprietorship that would preclude an individual from being considered unemployed for the purpose of collecting unemployment benefits without first providing the Office of Unemployment Insurance Administration with the required evidence to establish proof and justification for such unemployment. Act No. 675, effective on August 1, 2012, maintains the Administrator’s power to prescribe by regulation what constitutes proof of unemployment, but provides that the Administrator cannot demand proof of dissolution of an entire enterprise in order for an individual who fits the familial criteria in present law to be deemed unemployed.

Act No. 675 further provides that an individual who bears a relationship of spouse, mother or mother-in-law, father or father-in-law, son or stepson or son-in-law, daughter or stepdaughter or daughter-in-law, brother or brother-in-law, sister or sister-in-law, to a principal or controlling stockholder or a principal officer of a corporation, partnership, or proprietorship, or is him or herself a principal or controlling stockholder or a principal officer of a corporation, partnership, or proprietorship, who has for the first four of the last five quarters been listed as an employee and for whom unemployment insurance coverage premiums have been paid for that same period of time and, who, in addition, is no longer eligible to receive any remuneration or dividends from the enterprise for whom he or she previously worked, will be considered to meet the criteria for unemployment.

Note: This article was published in the December 2012 issue of the Louisiana eAuthority.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ogletree, Deakins, Nash, Smoak & Stewart, P.C. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.