Can consultants get unemployment benefits through NYS Department of Labor?
I've been working as an independent consultant for the past 18 months but my main client just ended our contract. I know freelancers usually can't get unemployment, but I'm wondering if there are any exceptions or if consultants are treated differently by NYS Department of Labor? I did pay quarterly taxes and have 1099s from my work. Has anyone in a similar situation been able to file for UI benefits?
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Sean Murphy
Unfortunately, independent contractors and consultants generally aren't eligible for unemployment benefits in New York. The NYS Department of Labor requires you to be an employee, not self-employed. However, there are some exceptions - if you can prove you were misclassified as a contractor when you should have been an employee, you might have a case. You'd need to show things like set schedules, company equipment, lack of control over how work is performed, etc.
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Anastasia Ivanova
•That's what I was afraid of. I definitely had control over my schedule and used my own equipment, so probably no luck there.
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StarStrider
wait i thought the rules changed during covid? maybe they're still different now?
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Zara Malik
•The pandemic programs like PUA that covered self-employed workers ended in 2021. Regular NYS Department of Labor unemployment is back to the old rules - employees only, not independent contractors.
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Luca Marino
I'm in the same boat! Been consulting for 2 years and just lost my biggest client. It's so frustrating because we pay taxes like everyone else but can't get unemployment when work dries up. Have you looked into other options like applying for regular jobs so you can build up eligibility for future claims?
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Anastasia Ivanova
•Yeah I'm definitely going to start looking for W-2 positions. Should have thought about this earlier honestly.
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Nia Davis
If you're having trouble getting through to someone at NYS Department of Labor to ask about your specific situation, I used claimyr.com recently to actually reach an agent. They help you get through the phone lines when they're overwhelmed. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Might be worth checking if there's any way your consulting arrangement could qualify, especially if you had any employment mixed in.
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Mateo Perez
•interesting, never heard of that service before. the phone lines are definitely impossible to get through normally
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Aisha Rahman
The system is so broken!!! I know people who worked under the table for YEARS and got unemployment no problem but those of us who followed all the rules and paid our taxes properly get screwed over. Makes no sense.
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Sean Murphy
•I understand the frustration, but the rules are there for a reason. The unemployment system is funded by employer payroll taxes, which independent contractors don't pay into.
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Lukas Fitzgerald
Have you considered reaching out to a lawyer who specializes in employment law? Sometimes the line between contractor and employee isn't as clear-cut as it seems, especially if your client had a lot of control over your work or if the relationship lasted that long. An attorney could review your contract and working arrangement to see if there's any argument for misclassification. Also, even though you can't get unemployment now, you might want to consider setting aside an emergency fund going forward since we don't have that safety net - I learned this the hard way!
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