Roccograndi v. Unemployment Comp. Bd. of Review

Brief Fact Summary. The Roccograndis, (Appellants), are officers in a family business. After being laid off, Appellants applied for unemployment benefits and were denied. Appellants appeal the decision.

Synopsis of Rule of Law. The corporate entity may be ignored in determining whether the claimants in fact were unemployed under the act or were self-employed persons whose business merely proved to be unremunerative during the period for which the claim for benefits was made.

Facts. Appellants are members of a family who are involved in a business together. Appellants are officers in the company. During periods of insufficient work to employ all members of the family, the officers hold a meeting and by majority vote determine who should be laid off. Appellants were laid off because it was their turn. Appellants then filed for unemployment compensation benefits. The claims were denied on the grounds that Appellants were self-employed. Appellants appealed and the decision was reversed. The Board of Review then reversed and Appellants appeal.

Issue. Whether Appellants were in fact unemployed and entitled to unemployment benefits.

Held. No. Appellants were self-employed persons whose business merely proved to be unremunerative during the period for which the claim for benefits was made.

Discussion. Appellants had sufficient control in the company to lay themselves off and they did just that. Therefore Appellants were self-employed and must be denied eligibility for unemployment benefits.