CA Unemployment + Contract Work?

by RmS

(Northern Califorinia)

CA Unemployment + Contract Work?

Dec 31, ’09 was my last day at work. I’m going to file for unemployment, but I have a question I can’t find an answer to anywhere (and I can’t get EDD on the phone).

I have a possible 3-month contract, starting mid-January (if I get the contract). I understand I won’t receive any benefits while I’m contracting, however, once my contract ends (end of March), will I still be able to receive my UI benefits? I was at my previous company for 4 years, before being laid-off.

Please help! I can’t find an answer to this in any forum.

Thanks!
~Wanting to Work in California

Answer
Hi RmS

It is always the separation from the most recent employment that controls a claim .. whether a new claim or a reopened claim.

I guess my question back to you is whether the contract job will be “covered” employment or if it is an independent contracting, consulting, or freelance gig of some kind.

I’m not sure what concerns you the most, but my major concern for anyone asking this type of question would be monetary eligibility if the contract is “self employment” for three months.

Given that California uses the standard base period of the first 4 of the last 5 COMPLETED QUARTERS, relative to the date of filing.

I don’t think losing any of your base period wages will be a problem for a three month assignment. There can be up to a six month lag in base period wages .. by this I mean if you had been laid off and applied on 12/30/09 your base period would have been 4/1/08 through 6/30/09. If you apply anytime during the 1st quarter of 2010 the base period for you in CA is 7/1/08 through 9/30/08.

Notice that if someone waits to long and the subsequent work is not “covered” employment (meaning UI taxes are being paid of your wages) .. it’s not all that hard to come up short on wages in your base period to qualify. You must have wages in at least two quarters in almost all states to qualify monetarily.

If I’ve missed the mark with regard to what you want to know .. just let me know.

Comments for CA Unemployment + Contract Work?

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Apr 15, 2010
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unemployment question

by: Jane

What happens if you live in Ohio, are getting Unemployment benefits, are offered a 8 month contract for work. After the eight months, can I go back to the prior employer for unemployment if the contract employer is not paying benefits? I was laid off in March and the new position would be until Dec.

JK,

You don’t go back to the same employer. You go back to the same claim, but I suspect that by the time the eight months are up you’ll have to file a new claim.

Think wages .. not employer when you’re talking about monetary issues.