Can I qualify for EDD after working gig jobs following layoff?
Feeling completely lost about my unemployment eligibility right now. I was laid off from my warehouse supervisor position 3 months ago (company downsized the whole department). The first week after, I started doing delivery app gigs to keep some money coming in. Made about $875-950/week for 8 weeks which was a bit over half my previous income of $1,650/week. Now those gigs have dried up completely (app deactivated me due to customer complaints that weren't my fault). My question is: am I still eligible for unemployment based on my original layoff, or did doing gig work disqualify me? Would they calculate benefits based on my W2 job or include the 1099 gig income too? Really worried I messed everything up by trying to make ends meet instead of filing immediately.
16 comments
Malik Johnson
I went through something similar back in October! Got laid off from my office job, did some freelance work, then tried to apply for benefits. EDD takes your 1099 income into account for your weekly certification but your benefit amount is based on your W-2 earnings during the base period. You definitely didn't mess up - you should still file ASAP because you were laid off (good cause) from your main job. When you certify, you'll need to report any gig income for those weeks, but now that you're not doing gigs anymore, you should get the full benefit amount going forward. The frustrating part is actually getting through to EDD if you have questions. Took me 47 calls over 3 days before I could speak to a rep. Try Claimyr (claimyr.com) - they have a system that gets you through to an EDD agent without the endless redial nightmare. Totally worth it for me. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km
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Emma Davis
•Thank you so much for this info!! So I should just apply now and explain the whole situation on my application? I've been panicking thinking I missed some magic window or something. Did you have to provide proof about your gig work ending?
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Isabella Ferreira
ur still eligble but u should of filed right when u got laidoff tbh.... the gig work just reduces ur weekly amnt. each week u certify u enter wat u made and they subtract it. but now that ur not doing gigs ull get full amnt
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Emma Davis
•That's a relief. Do you know if there's any penalty for waiting to file? I honestly thought I was doing the right thing by trying to work instead of collecting unemployment.
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Ravi Sharma
Technically, you can backdate your claim to when you were initially laid off, but you'll have to show good cause for not filing immediately. Working gig jobs doesn't automatically disqualify you from benefits based on your W-2 employment. Here's what you need to know: 1. Your benefit amount will be calculated based on your highest-earning quarter in the base period (typically 12-18 months before filing) 2. For any week you earned gig income, you'd need to report it during certification, and your weekly benefit would be reduced accordingly 3. Any week you earned more than $600 in gig work, you likely wouldn't receive benefits for that week 4. Now that your gig work has ended, you should be eligible for full benefits going forward I recommend applying immediately and explaining your situation. The EDD representative will help determine if you can backdate your claim. Be prepared to show documentation of both your layoff and your gig work.
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NebulaNomad
•This is WRONG! You CAN'T make more than your weekly benefit amount, not $600!!! OP don't listen to this or you'll get an overpayment notice!! If your weekly benefit amount is $450 and you make $451 in a week you get ZERO benefits that week.
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Freya Thomsen
just go ahead and file now don't worry about the past weeks. when you certify just be honest about what you earned during your gig work. unemployment is a weekly benefit so each week stands alone.
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Emma Davis
•That makes sense, thank you! I was overthinking everything and stressing myself out even more.
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NebulaNomad
The important thing to understand is the partial benefit calculation. In California, you can earn up to $25 or 25% of your weekly benefit amount (whichever is higher) without any reduction. After that, every dollar reduces your benefit by a dollar. So if your weekly benefit is $450, you can earn up to $112.50 without reduction. If you earned $300 that week, your benefit would be reduced to $262.50. Also, IMPORTANT: You must report ALL income in the week you EARNED it, not when you got paid! This trips up a lot of gig workers. If you delivered on Sunday but got paid Friday, you report it for the certification week that included Sunday.
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Omar Fawaz
•This is exactly right. I made this mistake when I was driving for Uber between jobs and ended up with an overpayment notice because I reported income when it hit my bank account, not when I earned it. Took months to sort out.
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Omar Fawaz
You absolutely can and should apply for unemployment! I went through this exact situation in February. They will look at your base period earnings (which would be from your W-2 job) to determine your weekly benefit amount. The gig work is just considered part-time work during your unemployment period. When you file your claim, you'll need to: 1. List your W-2 employer as your last employer 2. Explain that you were laid off due to downsizing (this qualifies as lack of work) 3. When you certify for the weeks you did gig work, honestly report those earnings Since your gig work has now ended too, make sure to report that as well. From now on, you should receive your full unemployment amount assuming you continue to certify and meet all eligibility requirements like being able and available for work and conducting work searches.
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Emma Davis
•This helps a lot, thank you! Should I mention the gig work in my initial application or just when I certify for those specific weeks?
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Chloe Martin
So frustating that nobody explains this stuff clearly!!! I've been on unemployment 3 times in the last 6 years and the EDD website is TERRIBLE about explaining how gig work effects your claim. I got hit with an overpayment too because the online certification is so confusing about how to report self-employment income. Make sure you're SUPER detailed when reporting your gig work - dates, hours, gross earnings BEFORE their fees are taken out. And keep all your records because they might audit you later!!
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Freya Thomsen
•yeah the system is designed to be confusing its not an accident lol
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Emma Davis
Wow, thank you all for the helpful responses! I just submitted my application and listed my W-2 job as my last employer. I explained the whole situation about the layoff and subsequent gig work in the additional information section. Fingers crossed it goes through without issues. I'll update once I hear back in case it helps someone else in the future.
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Malik Johnson
•Good luck! And seriously, if you run into problems or need to talk to someone at EDD, check out that Claimyr service I mentioned. Saved me hours of frustration.
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