Do Independent Contractors Get Unemployment in California

As an independent contractor, you may be wondering if you are eligible for unemployment benefits in California. The answer is, unfortunately, not black and white.

Traditionally, independent contractors were not eligible for unemployment benefits because they are not considered employees. However, in 2020, California passed Assembly Bill 5 (AB 5), which established stricter guidelines for determining who is classified as an independent contractor vs. an employee.

Under AB 5, many independent contractors can now be considered employees, which means they may be eligible for unemployment benefits. However, the specific circumstances will vary on a case-by-case basis.

To determine eligibility, the California Employment Development Department (EDD) will consider several factors, such as the level of control the employer has over the worker, the nature of the work, and whether the worker is engaged in an independent occupation.

It`s important to note that even if you are classified as an independent contractor, you may still be eligible for pandemic-related unemployment benefits under the CARES Act. This includes the Pandemic Unemployment Assistance (PUA) program, which provides benefits to those who are self-employed, gig workers, and others who are not eligible for traditional unemployment insurance.

In order to apply for unemployment benefits, you must file a claim with the EDD. This can be done online or over the phone. You will need to provide information about your work history, earnings, and reasons for being unemployed.

If you are approved for benefits, you will receive a weekly payment based on your previous earnings. The amount and duration of benefits will depend on your specific circumstances.

In conclusion, whether independent contractors are eligible for unemployment benefits in California is a complex issue. If you have questions about your eligibility, it`s recommended that you consult with an attorney or contact the EDD directly. It`s important to understand your rights and options as an independent contractor in order to ensure that you receive the support you need during difficult times.

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