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.