Zeig v. South Dakota Department of Labor, Unemployment Insurance Division

I dissent. Appellants Jerry and Larry Zeig were business owners and operators. They were not employees within the meaning of the unemployment compensation act. This was the initial issue at the agency level. It remains the central impediment to claimants’ qualification for unemployment compensation, a blizzard of procedural error allegations notwithstanding.

An officer of a corporation, as such, is not ineligible for unemployment compensation by virtue of SDCL 61-1-10. By owning 94% of the outstanding shares of J & L Gravel, however, appellants exercised full control of the corporation. They…