The word "law" is very fluid in NJ, as everyone from your local cop and mayor to the "freeholder" (some retarded version of a state rep) and county judge are on the take that streams from the governor's office.

If you are protected by the person above you, you can literally do and claim almost anything. And it happens all the time.

Example: there's a man in a popular resort town that owns a very popular deli, but works for the city public works as a grunt in the off-season. That's his contract. So what does he do? He doesn't collect a paycheck from his million+ dollar business because they live in an apartment upstairs, bills everything as an expense, and collects unemployment during the summer, while working full-time at the business.

Now, the only way he'd really get fucked is if someone above him in the union or city hall decided to make a stink to the labor commission, otherwise it's just an investigation the LC isn't into pursuing. Since he's a good egg and looks the other way with other schemes he witnessed people pull, nobody gives him a problem, and he siphons off tens of thousands every year being "seasonally unemployed". He's done it for decades.

That's New Jersey, in a nutshell.