7 Pa. Commw. 406 | Pa. Commw. Ct. | 1973
Opinion by
Margaret S. Gilbert (claimant) is the president and treasurer of Gilbert Sportswear, Inc., a “contract sewing” company located in Reading. The claimant owns 90% of the capital stock of Gilbert Sportswear, the remaining 10% being owned by her daughter. During
Section 402 of the Unemployment Compensation Law, Act of December 5, 1986, Second Ex. Sess.,.P. L. (1937) 2897, as amended, 43 P.S. §802, states that: “An employe shall be ineligible for compensation for any week . . .(h) In which he is engaged in self-employment. . . .” It has been stated that: “The Unemployment Compensation Law was not enacted to compensate individuals who fail in their business ventures and become unemployed businessmen. . . .” Freas Unemployment Compensation Case, 201 Pa. Superior Ct. 150, 152, 191 A. 2d 740, 741 (1963). Also, see Dawkins Unemployment Compensation Case, 358 Pa. 224, 56 A. 2d 254 (1948); Roccograndi Unemployment Compensation Case, 197 Pa. Superior Ct. 372, 178 A. 2d 786 (1962).
In Starinieri Unemployment Compensation Case, 447 Pa. 256, 289 A. 2d 726 (1972), the Supreme Court held that the proper test to decide if a claimant is a businessman and not an employee is whether or not he “exercises a substantial degree of control over the corporation.” In this case, the claimant not only is the president and treasurer of Gilbert Sportswear, but owns 90% of the capital stock. It is clear that she exercises a substantial degree of control over the company and is not merely an employee. She is thus not eligible for unemployment compensation benefits.
The claimant, who was permitted to argue her case orally without filing a brief, made many references in
We, therefore, issue the following
Order
Now, January 30, 1973, the Order of the Unemployment Compensation Board is affirmed and benefits are denied to Margaret S. Gilbert.