Can I claim EDD benefits after 70% salary cut and forced 1099 status while working two jobs?

Yes, you might qualify for partial unemployment benefits! This situation is called a "reduction in hours/wages" claim. Since your income was reduced by more than 20% (yours is a massive 70% cut), you could be eligible. The W2 to 1099 conversion is actually a form of termination from your W2 position - they're essentially ending your employment and offering you a completely different arrangement. You should apply online through UI Online ASAP and make sure to explain both the pay cut AND the status change. Just be aware you'll need to report all earnings from both jobs during certification.

omg they did the exact same thing to me last year!! except mine was a 50% cut. seriously the whole W2 to 1099 thing is their sneaky way of avoiding unemployment claims. i didnt even try to file cause i assumed i wouldnt qualify with my other job. following this to see what happens with yours

The key here is whether your total earnings from your remaining W2 job are less than your weekly benefit amount would be. If your other job pays less than what your weekly UI benefit would be, you might get partial benefits to make up some of the difference. You gotta report all your income during certification tho

I think the better question here is whether that 1099 conversion is even legal? They can't just decide to change your employment classification unless your actual work arrangement changes. If they're still controlling when/how you work, they might be misclassifying you.

When you apply for UI benefits, make sure to explain that you were essentially terminated from your W2 position and offered a vastly different arrangement. The combination of a 70% pay cut AND change to 1099 status amounts to constructive dismissal in most cases. You'll need to report all earnings from both your retail job and the new 1099 work during your bi-weekly certification process. The EDD formula works like this: If your weekly earnings are less than your weekly benefit amount, you'll receive partial benefits equaling the difference. For instance, if your weekly benefit amount would be $450, and your current retail job pays $250/week, you'd receive $200 in UI benefits. Also worth noting that as a 1099 contractor, you're now responsible for paying your own Social Security and Medicare taxes, which is an additional 15.3% tax burden. This effectively makes your pay cut even more severe.

hav u tried calling EDD to ask? might be faster than waiting for forum responses? i tried 2 get thru last month and gave up after like 30 calls lol

Your employer is CLEARLY trying to avoid paying unemployment! This happens ALL THE TIME. They make your situation so unbearable with massive pay cuts that you quit "voluntarily" OR they shift you to 1099 so they aren't responsible when they eventually cut you loose completely. It's a SCAM that companies pull to avoid their obligations. I went through something similar in 2024 and had to FIGHT the EDD determination initially because my employer lied about the circumstances.

One more important thing to consider: when you file your claim, the EDD will need to determine which job separation to base your claim on. If you're still working your retail job, they'll likely base the claim on the job with the significant reduction (your remote job). Make sure to clearly document the notification about the pay cut and status change - save that email! You'll need to provide the exact date when this change goes into effect.

i think what sucks most about these situations is most ppl dont even know they can get partial unemployment so they just accept the crappy new terms. make sure to tell ur coworkers if others are getting hit with the same changes

Based on your responses, it sounds like this is affecting multiple employees. That's actually helpful for your case as it demonstrates a clear business decision rather than performance-based action. When you file, you'll want to: 1. Wait until the actual change takes effect 2. Apply online through UI Online (faster than paper application) 3. Select "Still working but had hours reduced" as your reason 4. Clearly explain the 70% pay cut AND status change in the additional details section 5. Be prepared for EDD to contact both employers to verify details 6. Report ALL earnings accurately during certification If your application is initially denied, don't panic - many complex cases require an appeal. The appeal process gives you an opportunity to explain your situation to a judge who better understands employment law nuances.