Karel Kearl v. Department Employment

HALL, Chief Justice: Plaintiff Karel Kearl brought this action to review the decision of the Board of Review of the Department of Employment Security, Industrial Commission of Utah, regarding repayment of unemployment compensation. The Industrial Commission found that plaintiff had violated U.C.A., 1953, § 35-4-5(e) by knowingly withholding material information from her unemployment claims in order to obtain benefits to which she was not entitled. The Board assessed a 31-week disqualification period against her and required the repayment of benefits of $1,200. We affirm. On January 1, 1982, plaintiff and her mother, Mona Kearl, began operating a small restaurant in Laketown, Utah. Plaintiff's name was on the title to the restaurant, along with her mother's. From the beginning, plaintiff lived on the premises and worked at least six days a week as a waitress. During the first two months, plaintiff and her mother operated the restaurant alone. Later, several other persons were hired as waitresses. Plaintiff contended that she received no wages for this work and received no benefits from her tips since they were all put directly into a jar. She claimed she never received any of the money from the tip jar with one exception: $175 that she took out of the jar in order to finance a campaign for public office at a time subsequent to the claims at issue here.