How will a contract job affect unemployment benefits?
November 23, 2010 8:21 AM   Subscribe

YANAL: Unemployed person offered a 6-8 week full-time contract position. Could taking this gig screw them?

Not hypothetical: If a person accepts a temporary contract position, will they be eligible for unemployment after the contract ends if they cannot find another job or move into a permanent position? (I know freelancers are ineligible for some types of unemployment.) Could they lose benefits for turning the contract down? Even if accepting the contract renders them ineligible for unemployment afterwards?

In Tennessee, if it matters. (Hard to find anyone the unemployment office to pick up a phone this close to Thanksgiving. The contract job's HR person says it should be okay but admits it's muddy.)
posted by thinkingwoman to Law & Government (3 answers total)
 
I do not know in Tennesee, but in Washington State, I've taken short term gigs when on UI. It didn't impact the reopening of my claim after the contract ended. Also, mine wasn't a freelance gig (no 1099) but a FT contract position.
posted by spinifex23 at 8:25 AM on November 23, 2010


Here's what you do. Stop claiming for unemployment while you are working the contract job. When the job ends, restart your claim. Be prepared to note your most recent employer and how much you earned.

Also, freelancers can claim unemployment as well. Generally, though, you don't claim for money when you are making money. If you freelance or do odd jobs or short-term contracts or temporary work but are still on the hunt for full-time work then you are generally still eligible to claim. The simplest way to do this is to let your temporary work tide you over and, if and when it ends, go back and restart your claim.

Your state's system may be different. Do not turn down work! And, do your best to get this assumption confirmed by your state's employment department.
posted by amanda at 8:28 AM on November 23, 2010


The way it works in most states is that when you're on unemployment, the benefits office contacts you weekly and asks if you're available for work, if you did any work, and how much you got paid. If you do get paid something, they'll reduce your payment that week by that much, down to zero if you earned more than your check. But if you stop working within a certain time period--usually the maximum benefit period but verify this--you can keep getting your benefits.

Tennessee has an FAQ page which talks about some of this. I'd call your relevant TIPS line and ask.
posted by valkyryn at 11:03 AM on November 23, 2010


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