Information for Corporate Officers and Business Owners

The rules around unemployment claims may be unique to those who hold positions as corporate officers or have a significant stake in a business. If you own more than a 5 percent equitable interest or debt in a corporation, your wage-based unemployment claim with that corporation may not be valid. This means you will not be considered unemployed and no benefits will be awarded.

Understanding key terms:

• Equitable Interest: Ownership of more than 5% of the corporation's shares, either individually or jointly with your spouse.
• Debt Interest: Owning debt of the corporation that exceeds 5% of total corporate debt (excluding trade accounts payable).

Part-Time Corporate Officer/Owner

If you run a corporate business part-time while employed full-time elsewhere, you may still be eligible for unemployment benefits if you lose your full-time job. In these cases, you can file a claim based on your full-time work, and your earnings from the part-time business will be deducted from your part-time benefit rate.

Termination of Officer/Corporate Owner Status

Entitlement to unemployment benefits arises upon termination of corporate officer/owner status. Supporting evidence may include a signed statement from the corporation verifying termination, Certification of Tax Clearance, petition for final dissolution, deed of assignment of assets for the benefit of creditors, or a petition to the Chapter 7 bankruptcy court.

Information for workers who live and work in different states

 Determining where to apply for Unemployment Benefits can be challenging for people who live and work in different states. Here is a guide for travelers:

• Worked in New Jersey: Apply for unemployment insurance benefits in New Jersey if you worked in the state in the past 18 months and moved outside of New Jersey before you became unemployed. You can file your claim online or call the Reemployment Call Center for out-of-state claimants at 888-795-6672.
• You worked in New York, Pennsylvania, or Delaware: File your unemployment claim with the respective state's Department of Labor or Unemployment Compensation Office.
• You moved to New Jersey, but worked in another state: If all previous employment occurred in a different state, file your claim for unemployment insurance benefits in that state.

Understanding the complexities of unemployment insurance in special cases is essential to ensuring that people receive the benefits they deserve. Whether you are a corporate officer navigating the complexities of ownership or a worker dealing with cross-border employment, being informed about these special scenarios will help you navigate the system more effectively.