Question by Mark S: Can a contract worker get unemployment if laid off?
I’ve never applied for unemployment in 35 years of work, and actually don’t plan to, but I still need to know whether a person working on contract through an agency can get unemployment for being laid off after months of employment. Has a bearing on a potential future negotiation ….
Thanks
Thanks to Mark L. Although I am at times self-employed I am on a W2 through this contract agency. You seem to be saying that I might actually qualify for unemployment — that’s surprising. Anyone else sure about this?
Best answer:
Answer by Mark L
Independent businessmen do NOT qualify for unemployment, only employees do.
So the question is, are you an employee or self-employed. If you receive a paycheck with deductions, you are probably an employee. If you receive a 1099, or cash, you are an independent.
In my opinion, this issue should not be so black and white. Many individuals have small businesses, that they own and operate without employees, just so they can survive, a “self made job”. As a self-employed individual, you pay double and receive less in return than you would as an employee in and from social taxes. You benefit society by NOT taking jobs away from people less capable of being an Independent.
It seems to me that individuals, that are self-employed, then lose their businesses because of some stupid governmental political maneuver, should be entitled to compensation from the government, be it only unemployment, until you get back on your feet.
My experience comes from the Clinton Administration, and I’m glad I was not self-employed when Obama took the reins.
Know better? Leave your own answer in the comments!
If you are in the US, and have been paid as a W-2 employee, not a 1099 employee, then you would likely be eligible for benefits, and your employer would be your agency. You would be subject to the same criteria as if you were directly employed at the work-site company. The big three criteria:
1. You are not working through no fault of your own.
2. You are available for work.
3. You are actively seeking work.
Every state has their own regulations so you should find the unemployment agency website for your state to completely understand this.
Although specific eligibility requirements vary from state to state, most states have the same basic standards for collecting unemployment benefits. They include:
-You must be unemployed or working less than full time
-You must meet certain income requirements
-You must be ready, willing, and able to work
-You must have involuntarily left your job
In general, you won’t be eligible for benefits if:
-You quit your job simply because you didn’t like it
-You’re fired for committing a crime (e.g., stealing)
-You’ve never worked before
In your situation, it seems to be qualified, but I’d recommend you to go ahead and call your local unemployment office, and get a clear answer.
For more information, contact your state’s local employment office. You can also look in the state government section of your phone book under Unemployment Insurance, Unemployment Compensation, Employment Insurance, or Employment Service. Or, you can try surfing the Internet using these same key terms.