Unemployment Insurance Code section 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 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.

Source: Section 637, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=UIC§ionNum=637.­ (updated Sep. 26, 1989; accessed Sep. 1, 2025).

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§ 637's source at ca​.gov