CA Unemployment Question - Just got laid off, but should I accept contract work? Can I still collect since it's not FT? (how much)

[laurielee15]

Hi All,

Happy New Year. I just got laid off yesterday () and this is the first time i am in this position. Basically the company split and I was a casualty of it. My boss however said he can't afford me full-time, but can throw me some contract work from time to time. How does that work with unemployment benefits for the state of CA? I would like to take the contract work, but it will be very off and on. I have heard that if I take work, I just don't claim it for that week OR don't do it because once you receive payment you won't qualify anymore for unemployment? Can anyone shed some light? Thanks in advance for your help!!!!

[ferretkona]

The law requires you to report all income. You simply report how much you make on the bi weekly form, the amount you earned will be deducted from that weeks payment. Your EDD claim lasts one year.

[SunnyTXsmile]

Originally Posted by laurielee15

Hi All,

Happy New Year. I just got laid off yesterday () and this is the first time i am in this position. Basically the company split and I was a casualty of it. My boss however said he can't afford me full-time, but can throw me some contract work from time to time. How does that work with unemployment benefits for the state of CA? I would like to take the contract work, but it will be very off and on. I have heard that if I take work, I just don't claim it for that week OR don't do it because once you receive payment you won't qualify anymore for unemployment? Can anyone shed some light? Thanks in advance for your help!!!!

I am so sorry you're in this situation. While I've never used unemployment (so this isn't first-hand experience), in Maryland, anyway, when a friend was on it, any income he brought in was deducted from his benefits.

So, if his benefits were $800, but he only made $400 in contract work, he'd get an additional $400 in unemployment (to get him to the $800), unless he made more than the benefits for which he qualified (in which case he wouldn't get any unemployment for that period).

Someone might want to chime in on whether it works the same in CA. I imagine it does, but you know what they say about assumptions.

Good luck, and here's to hoping things turn around for you soon. Remember the true saying that one door closing is simply another opening in disguise.

[Ceece]

My daughter filed for unemployment twice and both times got some freelance work during the weeks she collected. It caused some confusion the first time and the payments stopped for a while but she got it straightened out with a phone call or two. When in doubt, ask.

I would always recommend taking the contract work because it can lead to something else and you are never more employable than when you are already working!

[oldtrader]

If the contract work is in field that others may want to give you contract work, having one account for contract work and get a satisfactory reference from you former employer for contract work, may lead to a full time job with several contracts and make more than you did in the past.

This is something you may want to consider. I have known different people that have followed this route and ended up with a good income stream.

I know of one woman that quit regular work for contract IT work, and when her husband took a management job in South America for double wages and lower living cost, she moved her business right along with her and they are doing real well.

With telecommuting a big thing today, many people have gone the contract route and have done real well.

You may want to consider this contract work a foot into the door.

Just a thought.