I have a very close friend who had his own business with his wife. She was CEO and he was Director of Information Technology. It was his company to start with but they changed the ownership to be 49/51 to make it a minority owned business. She started having an affair with a salesman in the company and eventually asked him for a divorce. They continued to work together for a while and then she told my friend that as of a certain date she would no longer be paying him. He told her if he wasn't being paid, he wasn't going to work for free. He was having a lot of trouble with this situation and started seeing a counselor. He applied for unemployment and was granted unemployment. The wife appealed and based on him "quitting" and her assertation that he had not informed her he was under a doctor's care, his unemployment was revoked. (She knew of the counseling -she even offered to go and speak with the counselor - too bad he didn't take her up on this offer!). He now is faced with appealing the latest decision. This man was under a lot of stress having to work with his wife and her lover and being forced out by being told he wasn't going to be paid anymore. There is nothing in writing on this. She started keeping a personnel/HR file on him, but not on any other employee. Does he have a basis for appealing this decision and/or does he have a basis for a hostile work environment claim with a forced quitting scenerio?

Does he have a basis for appealing this decision Sure. Being told you aren't going to be paid any more is the same as being fired. I don't see what the husband being under a doctor's care has to do with his receiving unemployment unless the husband is medically unable to work. (Claimants must be physically available and capable of working in order to be eligible for UC benefits.)

and/or does he have a basis for a hostile work environment claim with a forced quitting scenerio? No. A HWE has a very specific meaning in the law and the wife sleeping with a subordinate and then divorcing her husband is not it, no matter how unpleasant a situation this obviously is.

I suggest your friend consult with legal counsel regarding dissolving the business and what money, if any, he is due for his share of the partnership.