Self-employed EDD eligibility confusion - can I file for unemployment at all?

Self-employed individuals generally do not qualify for regular UI benefits since you haven't paid into the unemployment insurance system through an employer. However, there are a few exceptions: 1. If you worked as a W-2 employee within the last 18 months (in addition to your self-employment), you might qualify based on those W-2 wages 2. If your business is set up as an S-Corp and you pay yourself as an employee with proper UI contributions 3. If you were misclassified as an independent contractor when you should have been an employee Did you have any W-2 employment alongside your freelancing in the past 18 months?

during the pandemic they had a special program for self employed people but that ended years ago. normal unemployment is only for w2 workers sorry

The others are correct that regular UI doesn't cover self-employed individuals unless you have qualifying W-2 wages. However, you might want to look into these alternatives: 1. State Disability Insurance (SDI) - but only if you've been paying into it AND have a qualifying medical condition 2. CalFresh (food assistance) 3. General Assistance/Relief through your county 4. California's Cash Assistance Program for Immigrants (CAPI) if applicable Also, while not unemployment related, check if you qualify for reduced healthcare premiums through Covered California if the income drop affects your coverage options.

THE EDD SYSTEM IS COMPLETELY RIGGED AGAINST SELF-EMPLOYED PEOPLE!! We pay taxes too but get ZERO BENEFITS when times get tough. During the pandemic they finally recognized us but then just dropped us like hot potatoes afterward. It's total BS that we're treated like second-class citizens by the unemployment system!!

Just a quick question - are you absolutely certain all your work was truly independent contractor status? Sometimes companies misclassify employees as 1099 workers when they should legally be W-2 employees. If any of your clients controlled your schedule, provided equipment, directed how you performed your work, etc., you might have been misclassified. In that case, you could potentially file for UI and EDD would investigate whether those wages should count. It's a long shot, but worth considering.

I was in the same boat last year when my construction business slowed down. Spent WEEKS trying to get through to EDD to see if there were any options for self-employed people. Called like 50+ times and either got disconnected or couldn't get past the automated system. Finally used this service called Claimyr (claimyr.com) that got me connected to an EDD rep in about 20 minutes. They have a video demo that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The EDD rep confirmed what others said here - no UI for self-employed folks unless you had W-2 wages. BUT they did point me to some other resources I wouldn't have known about otherwise. Might be worth connecting with someone directly to see if there's anything specific to your situation.

have u thought about doing instacart or doordash until u find more design work? thats what i did when my work dried up

One final thought - if you're experiencing this severe drop in income, make sure to apply for all benefits you might be eligible for at once. Go to BenefitsCal.com which is a single portal for CalFresh, Medi-Cal, and other programs. Many self-employed people don't realize they can qualify for these safety net programs during down periods. While it's not unemployment, it can help with essential needs while you rebuild your client base.

I went through something similar when my photography business hit a rough patch in 2023. While you're exploring the benefit programs others mentioned (which are definitely worth pursuing), don't forget to check with your local Small Business Development Center (SBDC) or SCORE chapter. They offer free business counseling and might have resources for marketing your services or pivoting during slow periods. Some also have emergency microloan programs for small businesses facing temporary hardships. I found mine through the SBA website - they helped me develop a plan to rebuild my client base that I never would have thought of on my own. It's not immediate cash like unemployment would be, but it could help you get back on your feet faster.

I feel for you Connor - the gap in coverage for self-employed folks is really frustrating. One thing that might help while you're pursuing the other programs mentioned is to document everything about your income drop. Keep records of client communications, invoices, bank statements, etc. If you do end up applying for any benefits or assistance programs, having solid documentation of your situation will speed up the process. Also, consider reaching out to your local Workforce Development Board - they sometimes have programs specifically for displaced workers that include self-employed individuals, and they might have job training opportunities that could help you expand your skill set or transition into related fields while you rebuild your client base. It's worth a shot since every county has different programs available.

Hey Connor, I'm sorry you're going through this tough situation. As others have mentioned, regular UI benefits aren't available for self-employed folks without W-2 wages, but I wanted to add a couple more resources that might help: 1. Check if your city or county has any emergency rental assistance or utility assistance programs - many expanded these during the pandemic and some are still running 2. Look into local food banks and community assistance programs while you're waiting for CalFresh to process 3. Consider contacting 211 (dial 2-1-1) - they have comprehensive databases of local assistance programs that you might not find online Also, since you're in the creative field, check if there are any local artist relief funds or grants in your area. Some cities and nonprofits have emergency assistance specifically for creative professionals. It's not much, but every little bit helps when you're rebuilding. Hang in there - the combination of gig work, benefits, and hopefully some new clients should help you get through this rough patch.

Connor, I'm really glad to see you're feeling more optimistic! This thread has been a great example of how the community can come together to help each other navigate these complex systems. Since you mentioned you're a graphic designer, I wanted to add one more resource - check out the Freelancers Union website (freelancersunion.org). While they don't provide direct financial assistance, they have a lot of resources specifically for independent contractors including healthcare options, advocacy information, and sometimes they partner with organizations that do offer emergency grants for freelancers. They also have a community forum where other creative professionals share resources and opportunities. Additionally, consider reaching out to your local library - many have small business resources, free computer/internet access if needed, and some even host networking events for local entrepreneurs. Keep us posted on how things work out with all these programs!

Connor, I'm really impressed by how you've turned this challenging situation into such a learning opportunity! Reading through this thread, it's clear you've gotten some fantastic advice and resources. As someone who works with small business owners, I wanted to add one more angle - since you're rebuilding your client base, consider setting aside a small percentage of future income for self-employment tax savings AND creating an emergency fund specifically for business downturns. I know that's probably the last thing you want to think about right now, but having even a small buffer can make situations like this less scary in the future. Also, once you're back on your feet, you might want to look into whether forming an LLC and electing S-Corp status makes sense for your business - it could give you access to unemployment benefits in the future if you pay yourself a salary (though definitely consult with a tax professional first). Best of luck with all the applications and programs you're pursuing!

Connor, I've been following this thread and I'm so glad to see how much helpful information everyone has shared! As someone who went through a similar situation with my consulting business a couple years ago, I wanted to add one more resource that really helped me - the California Employment Development Department actually has a Self-Employment Assistance Program (SEAP) in some areas, though it's pretty limited and not well-publicized. It's designed to help people start businesses while receiving UI benefits, but sometimes they have resources for existing self-employed folks facing hardship too. Also, don't overlook your local community colleges - many have small business development programs, free workshops on marketing/networking, and sometimes even emergency assistance funds for students (you might qualify if you take even one class). The fact that you're being so proactive about exploring all these options shows you're going to bounce back from this. Keep that positive momentum going!

Connor, this thread has become an amazing resource! I wanted to add one more thing that might help with your immediate cash flow situation. If you have any design work samples or a portfolio, consider reaching out to local print shops, marketing agencies, and even nonprofit organizations - many of them need freelance design help but don't always know where to find reliable designers. Sometimes they'll give you smaller, quick-turnaround projects that can provide some income while you're rebuilding your main client base. Also, check out websites like 99designs, Upwork, or Fiverr if you haven't already - I know the pay isn't always great, but it can help bridge the gap while you're waiting for benefit approvals and pursuing the other resources everyone mentioned. You might also want to reach out to your local Chamber of Commerce - they often have member directories and networking opportunities that could lead to new connections. Hang in there, and thanks for asking this question - I'm sure your situation will help other self-employed folks who find themselves in similar spots!