California · Unemployment Insurance Code - UIC

UIC §637: “Employment” does not include service performed by any of the following: (a) The officers and director of a corporation who are the sole shareholders of the corporation and it is not subject to the Fe

What this law says, in plain English

This statute defines what counts as 'employment' for legal purposes, excluding certain corporate officers and directors who are sole shareholders under specific conditions.

Read the full statutory text

“Employment” does not include service performed by any of the following: (a) The officers and director of a corporation who are the sole shareholders of the corporation and it is not subject to the Federal Unemployment Tax Act. (b) The officers and director of a corporation engaged in agriculture who are shareholders of the corporation and it is not subject to the Federal Unemployment Tax Act. (c) An officer of a corporation who is the sole shareholder, or the only shareholder other than his or her spouse, and the service is not subject to the Federal Unemployment Tax Act.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.