Total and Partial Unemployment TPU 460.25
Section 926 of the Unemployment Insurance Code states:
"Except as otherwise provided in this article ‘wages’ means all remuneration payable for personal services, whether by private agreement or consent or by force of statute, including commissions and bonuses, and the reasonable cash value of all remuneration payable in any medium other than cash."
Therefore, a claimant who works under a written or oral contract of hire that calls for remuneration in the form of credit, is employed since he is in receipt of wages for personal services.
Working for credit may take different forms. A claimant can work for credit to be applied to goods purchased in the past or goods purchased in the future. Also, a claimant may work for the value of his salary to be applied to a past debt. In any case, the monies applied to the debt are wages. It is the same as if the claimant were paid for his services and then returned the money to the employer. Since in this case the claimant is being paid wages for the performance of personal services he is employed.