Freelancer filed EDD claim against me - how to contest 1099 contractor eligibility?

You need to respond with Form DE 4614, Notice of Eligibility Determination Interview. Submit documentation showing they were truly an independent contractor: the 1099 form you issued, your contract agreement showing they controlled their work method/schedule, and evidence they had multiple clients. California uses the ABC test to determine if someone was misclassified, so you'll need to show they (A) worked without your direction, (B) performed work outside your usual business, and (C) were independently established in that occupation. Respond before the deadline or EDD might automatically rule against you!

omg i had this happen 2 me last yr. total nightmare!! the freelancer prolly got denied regular work so now there tryin 2 say u were there employer. fight it hard!! EDD will make u pay if u dont

The key issue here is worker classification. In California, the ABC test sets a high bar for proving independent contractor status. Here's what you need to provide: 1. Your written agreement/contract showing independent relationship 2. Proof they maintained other clients (if you have emails mentioning other projects) 3. Business license or marketing materials showing they're an established business 4. Documentation they used their own equipment/software 5. Invoices showing project-based (not hourly) payment structure Be extremely thorough in your response. If EDD determines they were misclassified, you could face significant tax liabilities beyond just this UI claim.

EDD is IMPOSSIBLE to reach right now. When I had to dispute a claim last year, I spent 3 weeks trying to talk to someone who could actually help. Kept getting transferred around and disconnected. Total waste of time. If I were you, I'd try using Claimyr (claimyr.com) - they got me through to an actual EDD rep in about 20 minutes after weeks of trying. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Worth it to get actual guidance from EDD on what specific documentation they need for your case.

dude ur totally screwed. my friend went thru this and ended up having to pay like $6k in back taxes plus penalties. california HATES independent contractors now with that abc test thing.

I'm a freelancer and I can tell you we CAN claim unemployment in certain situations now, especially since COVID changed a lot of rules. The question is whether your contractor was misclassified (should have been an employee) OR if they're trying to claim PUA/mixed earner benefits. What exactly did the EDD notice say? Was it a Notice of UI Claim Filed, a DE 1101CZ, or something else? The exact form matters for understanding what type of claim they filed.

Yes, the DE 1101CZ means they're claiming they should have been an employee, not a contractor. Their LLC is definitely good evidence in your favor. Make sure to include: 1) Their LLC documentation, 2) Contract showing they controlled their work, 3) Proof they had multiple clients, 4) Invoices showing they billed you as a business. The fact they had an LLC makes your case much stronger!

After you submit your documentation, EDD may schedule a phone interview. Be prepared with additional evidence and clear explanations of your business relationship. The most critical factors are: degree of control over work, whether the work was integral to your business operations, and proof of their independent enterprise. I recommend organizing your documentation chronologically and creating a brief summary sheet highlighting how each piece of evidence satisfies the ABC test requirements.

Yes, there is an appeals process if EDD rules against you. You'll have 30 days from the date on the determination notice to file an appeal. The appeal would involve a hearing with an Administrative Law Judge where you'd present your evidence again. About 50% of appeals are successful when the employer has solid documentation, so don't give up if the initial determination goes against you.

One additional tip - make sure to keep copies of everything you submit to EDD and send your response via certified mail or through their online portal with delivery confirmation. EDD has been known to "lose" paperwork, and you'll want proof you submitted everything on time. Also, if you haven't already, gather any text messages or emails where the freelancer mentioned working for other clients or discussed their business operations. Even casual mentions of other projects can strengthen your case. Good luck!

Just went through this exact situation 6 months ago! The key thing that saved me was having email chains where the contractor discussed their other clients and mentioned setting their own deadlines. EDD initially ruled against me, but I appealed and won. Make sure you emphasize in your response that they: 1) Had their own business entity (LLC), 2) Used their own tools/software, 3) Could accept or decline projects, and 4) marketed services to others. Don't just list the facts - explain HOW each piece of evidence proves they meet the ABC test. I also included screenshots of their professional website and LinkedIn showing they marketed themselves as an independent business. The hearing officer said that really helped my case. You've got this!

I represented myself at the appeal hearing - didn't use a lawyer. The process was actually less intimidating than I expected. The hearing officer was fair and asked straightforward questions about the working relationship. I prepared a simple timeline showing when the contractor started/ended projects, when they invoiced me vs. when they invoiced other clients, and key communications that demonstrated their independence. The whole hearing took about 45 minutes over the phone. My advice: practice explaining your case clearly and concisely beforehand. Focus on the facts, stay calm, and be ready to answer questions about specific details of your working relationship. Since you have strong documentation (LLC, multiple clients, own equipment), you have a really good chance of winning if it comes to an appeal. But hopefully your initial response will be strong enough that it won't even get that far!