Can a Small Business Owner with Two Jobs Collect Unemployment if Lost Regular Job

[Suzette]

This question is for the state of California:

I am an RN and worked from 3/2011 - 1/2012 in a case management company. In 10/2011 i was placed on disability (reduced hours) due to a back condition. My disability will end in July 16, 2012. I was laid off from my job on 1/2012 (it was legal due to contracted position). In November 2012, my husband opened up an engineering business and for personal reasons, we decided to put the business under my name only. The business has not made any money since he is just starting and instead has bought expensive equipment that we still owe. We have no employees. My husband still has his full time job and only works own business after hours. I have nothing to do ith the business except its under my name and I help financially to sustain it.

I have been looking for work and because I am a new grad with no hospital experience, I am considered useless :-( my disability benefits will end mid July and I know I qualify for unemployment due to layoff and base period but don't know if owning this business will be a problem. I'm really worried since my income was helping us pay the equipment and I can't find a job.

In Feb 2012 I found a job with a psychiatrist but it's on an on-call basis. I work anywhere from 4-8 hours a week if I'm lucky. These past few weeks I only worked 4 hrs a week! If I am granted unemployment, I know I just report these earnings, but what about the business? Can someone please advise? Should I remove myself from the business? Or it's ok to have my name as long as I can prove I am not involved and I am actively looking for a full time nursing job? I know nothing of engineering :-) I appreciate any guidance. Thanks.

[Mr. Knowitall]

Mere ownership of shares in a corporation, or a membership in a LLC, does not automatically translate into working for the business. Without knowing more about the corporate form, finances, and what you may have represented elsewhere in terms of who works for the business and how many hours they perform, I'm not in a position to speculate about how EDD might treat the business if it found out about it. Even assuming EDD accepts that you are merely an owner, and are not and never have been an employee, EDD would have to be of the impression that any work you do for the business would not interfere with your accepting employment.

Leaving that aside for the moment, as you have a part-time job, you can qualify for unemployment based upon the loss of one job despite continuing to hold another; whether you would be eligible for a benefit, and how much it would be, will depend upon the amount of your earnings from the job you're continuing to work. You would be required to search for new jobs, and I expect that EDD would want to be assured that you would not let your part-time hours prevent you from taking a full-time job should one become available.