Laid off from tech job but working at husband's business unpaid - EDD eligibility question
I got laid off from my software developer position on July 31, 2024 (yay tech industry cuts 🙄). I've been helping at my husband's small consulting business since then, but I've never taken a salary from it (we keep business and personal finances separate for tax reasons). I'm putting in about 15-20 hours a week there handling client communications and some basic bookkeeping. My question is: Am I eligible for unemployment benefits from my tech job layoff even though I'm working at my husband's business? Since I'm not getting paid, I'm really struggling financially, but I'm worried EDD might view this as self-employment or something that disqualifies me. Has anyone dealt with a similar situation or know the rules around this? I don't want to apply and then get hit with an overpayment notice later!
17 comments


Fatima Al-Mansour
This is a tricky one. The main issue is whether EDD would consider you "available for work" while helping at your husband's business. Even though you're not getting paid, if you're spending significant time there (15-20 hours is substantial), it could potentially impact your eligibility since you're supposed to be actively looking for and available to accept suitable employment. When you certify, you have to report ANY work performed, paid or unpaid. You'd report the hours but $0 earnings. EDD might question this arrangement and could potentially consider you as working for a family business, which might affect your eligibility. I'd recommend being completely honest on your application about your situation. Mention the layoff, the unpaid work, and be prepared to explain the arrangement during an eligibility interview (which you'll likely get).
0 coins
Giovanni Rossi
•Thank you for the detailed response. I didn't realize I had to report unpaid work too! So when I certify, I just list the hours but put $0 for earnings? That makes sense, but I'm worried about the eligibility interview. Do you know what kind of questions they typically ask in these situations?
0 coins
Dylan Evans
my brotherinlaw worked at my shop for 2 month while looking for work and he still got ui benefits. just make sure u report the hours even with 0$ earnings. they asked him if he could quit anytime to take a job and he said yes and that was good enough for them
0 coins
Sofia Gomez
•This isn't entirely accurate. EDD evaluates each case individually. Family business situations often trigger eligibility interviews because they need to determine if you're truly available for work and if there's a reasonable expectation of payment later. Don't just assume it'll work out the same way.
0 coins
StormChaser
I was in a somewhat similar situation in 2023. Here's what you need to know based on my experience: 1. You MUST report the unpaid work when you certify, listing the hours but $0 earnings 2. EDD will likely schedule an eligibility interview to discuss your situation 3. The key factors they'll evaluate: - Whether you're truly available for full-time work (can you quit immediately if you find employment?) - Whether there's a reasonable expectation of payment later (even if deferred) - Whether you're actively seeking work in your field (software development) During my interview, they wanted documentation showing I was genuinely looking for work while helping at the family business. They asked specific questions about my work search efforts and how quickly I could leave the unpaid position. Make sure you keep detailed records of all your job applications and be prepared to explain why you're not taking a salary from your husband's business (legitimate business/financial reasons rather than trying to maximize unemployment benefits).
0 coins
Giovanni Rossi
•This is incredibly helpful, thank you! I'm definitely available to quit immediately for a new job and am actively applying to software developer positions daily. I'll start keeping better records of my job search efforts. Did EDD eventually approve your benefits in your similar situation?
0 coins
StormChaser
Yes, I was approved after the interview, but it took about 3 weeks for them to make the determination. The interviewer was particularly interested in whether I had an ownership stake in the business (I didn't) and if there was any formal or informal agreement about future compensation. One thing that really helped my case was having a clear separation - I was helping at the business while searching for work in my actual profession. Show that you're actively pursuing suitable employment in your field (software development) rather than just biding time at your husband's business. Also, be prepared for them to possibly contact your husband to verify your statements about the working arrangement.
0 coins
Giovanni Rossi
•That's good to know! I don't have any ownership stake either, and there's no agreement about future payment. It's truly just me helping out while I search for another dev job. I've been applying to at least 3-4 positions daily since my layoff.
0 coins
Dmitry Petrov
THE EDD IS GOING TO SAY YOU'RE COMMITTING FRAUD!!! My cousin's wife did something similar and they made her pay back THOUSANDS plus penalties!!!! They always assume family businesses are trying to scam the system. They'll say you should be getting paid and are just choosing not to so you can double-dip with UI benefits. The system is RIGGED against small business families!!!
0 coins
Sofia Gomez
•This is an extreme case and not necessarily representative. While EDD does scrutinize family business situations more carefully, they don't automatically assume fraud. As long as OP is honest about the arrangement, reports the unpaid hours, and has legitimate reasons for the setup, they can certainly be eligible.
0 coins
Ava Williams
I'd strongly recommend trying to actually speak with an EDD representative about your specific situation before filing. Getting through to EDD is nearly impossible these days, but I recently used a service called Claimyr (claimyr.com) that got me connected to an EDD agent within about 25 minutes when I'd been trying unsuccessfully for weeks. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Having a direct conversation with EDD about your specific situation before you file could save you a lot of headaches and potentially prevent issues with your claim. The agent I spoke with was able to give me guidance on my specific situation that I couldn't find anywhere online.
0 coins
Giovanni Rossi
•Thank you for the recommendation! I've been trying to call EDD for the past two days with no luck. Always get the "we're experiencing high call volume" message. I'll check out that service - getting clarification directly from EDD before I file would definitely help ease my anxiety about this whole situation.
0 coins
Miguel Castro
Just be honest. Report everything. That way even if they deny u now u can always appeal without worrying about lying. Better to get nothing than commit fraud and owe penalties later. My friend got hit with a fraud penalty and it was 30% on top of what she had to pay back!!!!
0 coins
Dylan Evans
i think ur overthinking this. just apply! worst they can say is no lol. ur not getting paid so how is that even work? my nieghbor volunteers at a charity 15hrs a week and still gets unemployment because volunteering isnt a job. ur basically volunteering for ur husband
0 coins
Fatima Al-Mansour
•There's a significant difference between volunteering for a charitable organization and working unpaid for a family business. EDD treats these situations very differently. Family businesses receive extra scrutiny because there's often an expectation of eventual compensation or non-monetary benefits. Volunteering at a registered non-profit is a clearly defined relationship.
0 coins
Giovanni Rossi
UPDATE: I wanted to thank everyone for their advice! I used Claimyr to reach an EDD representative yesterday after failing to get through on my own for days. The rep was really helpful and told me I should definitely apply but make sure to report the unpaid hours when certifying. She said I'll likely get an eligibility interview, but as long as I'm honestly reporting everything and actively looking for work in my field, I should be eligible. I'm going to file my claim today and make sure I keep detailed records of all my job search activities. Will update again after my interview!
0 coins
StormChaser
•That's great news! Glad you were able to get some official guidance. Definitely keep detailed records of your job search activities - names of companies, dates of application, any follow-ups, interviews, etc. This will be extremely helpful during your eligibility interview. Good luck with your claim!
0 coins