Friday, January 16, 2009

Can Freelancers Collect Unemployment?


Drastic times call for drastic measures. I don't know about you, but in my book, collecting unemployment qualifies as a drastic measure. To date I have been asked by four freelancers whether or not we can collect unemployment benefits from agencies that have issued us W-2s (technically it would only be the last agency that issued you a W-2). The contention being that because we are classified as "temporary employees" who receive W-2s (and not freelancers who receive 1099s) we are legally entitled to receive unemployment compensation. To be honest with you, I have no idea. So I asked around and did some reading.

Want to know more about basic eligibility requirements in the State of Connecticut? Click here to access the CT Department of Labor website.

There is a lot of information there - too much to repeat here, and a lot of the info is based on individual situations. Note that you must attend a hearing at your local unemployment office to determine your eligibility for benefits. This hearing is very informal, usually held at the desk of an unemployment coordinator, where both the person filing for unemployment and a representative from the company they are claiming benefits from must be present. Mmmmmm, cozy.

Maybe the question isn't "can freelancers collect unemployment?" Maybe it's "SHOULD freelancers collect unemployment?" Personally, I wouldn't do it even if I were legally able to do so. My fear is that the agency bean counters would hold a grudge, and my name would end up on a "blacklist" - forever banned from that agency. Yes, I know that isn't fair play on the agencies part, but life ain't fair brothers and sisters. Note that this is my suspicion. I AM NOT STATING FACT. However, I have heard rumors of freelancers being blackballed in the past for trying to claim benefits from agencies. Also, given the current economic situation, it wouldn't surprise me in the least to see a bean counter fight tooth and nail to hold on to every last penny an agency has. Again, I'm not stating facts, just my take on things. In the end, ya gotta do what ya gotta do.

So my advise to all you freelancers is to definitely file for unemployment! That way, if you get banned forever it will mean more potential work for me. If you do receive benefits and don't get banned then that means I can get unemployment too. See? It's a win-win situation for "The Slim One". Ahhhh, freelancers helping freelancers. Just the way it ought to be!

In all seriousness, if you have filed a claim, or are thinking about filing a claim please post a comment and let us know the details of the outcome. It will be most helpful to read about other freelancers experiences with this issue.
Thanks,
Slim

2 comments:

  1. Hey Slim,
    I like your way of thinking; they say it's the 2nd mouse that gets the cheese. :-)
    OK, I'll be your gineau pig and here's what I know:
    I filed for unemployment from an agency that won't be mentioned here and I was informed that based on the hours that I had worked there for that specific quarter I was only qualifying for $100 dollars a week. (couldn't even pay the electric bill) I was given a hearing date and discussed the idea/ramifications with other starving freelancers (our blog host included). I decided NOT to file because the amount wasn't worth the risk of pissing off The Corporate Giant and possibly being blacklisted. I'm quite glad I made that decision because when I sat down at my hearing I could tell it was going to be a battle to get my status/situation into this guy's cranium. He asking me twice for my pink slip and continued to ask if I was let go by the company. It was right then that I told this moron that I had made the decision NOT to file for reason's previously stated. He almost shit his pants when I told him what my hourly rate was and asked what it was I did that paid THAT kind of money! ( I guess a job at unemployment doesn't pay much) He's probably learning to bevel and glow at the CT School of Art right now!
    I hope my experience helps...

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  2. Thanks for posting this info JW. Yes, it does help. I forgot about the part where you need to provide a "pink slip". Between making you jump through hoops when filing, and the realization that your "compensation" is a fraction of your hourly rate it certainly doesn't seem worth it.

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