Can EDD approve unemployment for independent contractor in beauty industry after sudden termination?
So frustrated right now - I've been working as an independent contractor for Luxe Hair Products for almost 2 years, and yesterday they just terminated my contract with barely any notice. I was doing sales demos, training salon staff, and managing regional accounts for them. They said it was a 'business restructuring' but I know they just hired someone younger last month who's probably working for less money. I've always paid my self-employment taxes and have 1099 forms from them. Can I even apply for unemployment as an independent contractor? I've heard different things from different people and the EDD website is confusing me. Do I qualify for regular UI benefits or is there something else I should apply for? My rent is due in 3 weeks and I'm starting to panic.
15 comments


Yara Abboud
u cant get regular unemployment as 1099 contractor sorry. EDD only for w2 employees. independent contractors dont qualify cuz ur technically self employed
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Connor Byrne
•Ugh, that's what I was afraid of. So there's literally no safety net for contractors? That seems so unfair.
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PixelPioneer
That's not necessarily true. You might qualify for UI benefits if you were misclassified as an independent contractor when you were actually treated like an employee. California uses the ABC test to determine this - look at factors like: - Did the company control when/how you worked? - Were you doing work central to their business? - Did you have your own established independent business? If you were truly an employee by these standards but paid as a contractor, you should file a UI claim and explain this in your application. EDD will investigate your work relationship. If they determine you were misclassified, you could receive regular UI benefits.
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Connor Byrne
•Oh wow, that's interesting! They definitely controlled my schedule - I had to be at specific salons on specific days for demos. And I couldn't work for competing brands. Maybe I do have a chance? Should I just apply online through UI Online?
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Keisha Williams
I went through this EXACT thing when I got let go from a makeup company last year! I was also a "contractor" but EDD determined I was misclassified. The key was that I had to do everything THEIR way and couldn't refuse assignments. I submitted my 1099s and contract when I filed on UI Online, then got a phone interview about 3 weeks later where I explained my situation. They approved me but then my former company appealed it and claimed I was a true contractor. There was a hearing and everything!! It was stressful but I eventually won because they controlled my schedule and wouldn't let me work for competitors.
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Connor Byrne
•That sounds so stressful but gives me hope! Did you have any issues contacting EDD during this process? I'm worried about getting through to someone if I have questions.
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Paolo Rizzo
Save urself the headache and apply for cash aid. I wasted 3 months trying to convince edd i was an employee when i did instacart. total waste of time!!!
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Amina Sy
•The situations aren't comparable. Instacart gig workers are very different from long-term contractors with specific companies who may be misclassified. The ABC test specifically looks at the nature of work relationships, and beauty industry often has these classification issues. Filing for UI is absolutely worth it in this situation.
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Oliver Fischer
If you decide to file for UI based on possible misclassification (which sounds likely in your case), you should be prepared for a potentially lengthy process. When you submit your claim, include as much documentation as possible showing how the company controlled your work (emails about schedules, contract terms forbidding work with competitors, required training, etc). Also, be aware that it's VERY difficult to get through to EDD's phone lines if you have questions during this process. After spending days trying to reach someone about my misclassification case, I finally used Claimyr.com to connect with an EDD rep - their service got me through in about 20 minutes when I'd been trying for weeks. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Definitely worth it for complicated cases like misclassification where you'll likely need to speak with a specialist.
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Connor Byrne
•I hadn't heard of that service before, but I'll definitely check it out if I run into problems. I've already been organizing my documentation - found emails where they scheduled me for specific events and explicitly told me I couldn't work for competing brands. Hopefully that helps my case!
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Natasha Ivanova
Just wanted to say I'm going thru something similar right now with EDD after working for a fitness company as a "contractor" but they controlled EVERYTHING. The key is to be super detailed in your application about how they treated you like an employee. And dont get discouraged if u get denied at first - appeal appeal appeal!!!!!
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Connor Byrne
•Thanks for the encouragement! I'm filling out my application now and being super detailed about how they controlled my work. Fingers crossed!
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Amina Sy
To add some important information: when you file your UI claim, you'll need to list your former company as an employer even though they paid you as a contractor. During the subsequent EDD interview, be prepared to explain specifically how they controlled your work (schedule, methods, tools provided, training requirements, etc.). Under California law, the company must prove ALL THREE parts of the ABC test to classify you as a contractor: A) You were free from their control and direction B) Your work was outside their usual business C) You were customarily engaged in an independently established trade or business If they fail ANY of these tests, you should be classified as an employee. Based on what you've shared, it sounds like they fail at least part A, possibly others. Expect the company to contest this, as they'll be liable for unemployment taxes if EDD rules in your favor. Document everything and be consistent in your statements.
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Connor Byrne
•Thank you so much for breaking it down like this! I just submitted my claim and made sure to include all the details about how they controlled my schedule, required me to attend their trainings, and prohibited me from working with competitors. Now I guess I just wait for the interview?
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Amina Sy
•Yes, now you wait for the phone interview. Make sure your phone is accepting calls from unknown numbers during this period. The EDD representative will ask you detailed questions about your work arrangement. Answer truthfully but be clear about the control elements. If they determine you were misclassified, you'll begin receiving benefits (though your former company may appeal). If initially denied, you have the right to appeal within 30 days.
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