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Employment Development Department
Employment Development Department

Total and Partial Unemployment TPU 460.7

Use of Property

Any individual who is in receipt of "wages" in exchange for personal services is employed if these "wages" exceed the weekly benefit amount. Section 926 of the Unemployment Insurance Code defines wages as follows:

"Except as otherwise provided in this article 'wages' means all remuneration payable to an employee 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 any person who performs a service in exchange for the use of personal property is in receipt of wages and thereby employed.

For example an otherwise unemployed claimant performs services in a friend's tavern in exchange for the use of the friend's automobile. This claimant is in receipt of "wages" to the extent of the value of the time spent in service in the tavern.

This same principle holds true for the claimant who performs services for a business in exchange for the use of the facilities of that business. For instance the janitor in a bowling alley who receives free games in exchange for his services; or the maintenance man at the country club who is entitled to use the club facilities in exchange for his services are performing services for "wages."