Can contract employees get unemployment benefits through NYS Department of Labor?
I've been working as a 1099 contractor for a marketing agency for the past 8 months but they just told me they're ending my contract next week. I've never filed for unemployment before because I thought contractors couldn't get it. But my friend said some contract workers can qualify now? Does anyone know if NYS Department of Labor covers independent contractors or if there's any way I can file a claim? I really need the income while I look for something new.
17 comments


QuantumQuest
Unfortunately, true independent contractors (1099 workers) generally don't qualify for regular unemployment insurance through NYS Department of Labor because you haven't been paying into the UI system. However, you might want to check if you were misclassified as a contractor when you should have been an employee. NYS Department of Labor looks at factors like whether the company controlled your work schedule, provided equipment, or directed how you performed tasks.
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Zoe Dimitriou
•They did give me a company laptop and required me to work specific hours in their office most days. Does that mean I might have been misclassified?
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Jamal Anderson
yeah my cousin went through this same thing last year, turns out his 'contractor' job was actually supposed to be W2 employee and he got unemployment plus back wages
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Mei Zhang
You'll need to file for a determination of your employment status first. Contact NYS Department of Labor and explain your work situation - the laptop, office hours, and how much control they had over your work. If they determine you were misclassified, you can then file for regular UI benefits. The process takes time though, so start as soon as possible.
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Zoe Dimitriou
•How long does that determination process usually take? I'm worried about paying rent next month.
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Mei Zhang
•It can take several weeks to a few months depending on how complex your case is. In the meantime, you might want to look into other assistance programs while you wait.
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Liam McGuire
this is exactly why I hate dealing with NYS Department of Labor!! they make everything so complicated when people just need help. the whole contractor vs employee thing is ridiculous - if you worked there regularly you should get benefits period
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Amara Eze
If you're having trouble getting through to NYS Department of Labor to discuss your situation, I had success using a service called Claimyr (claimyr.com) that helped me reach an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. It was really helpful when I needed to clarify my employment status after being laid off from what I thought was contractor work.
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Giovanni Ricci
•Never heard of that before but honestly anything is better than sitting on hold for hours just to get disconnected
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NeonNomad
I'm in a similar boat - been doing freelance web design but one client was basically my full-time job for 6 months. They controlled everything about how I worked. Wondering if I should look into this misclassification thing too?
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QuantumQuest
•If they controlled your schedule, work methods, and you worked primarily for them, definitely worth investigating. The key is whether you were truly independent or functioning as an employee.
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Jamal Harris
@Zoe Dimitriou - Based on what you've described (company laptop, required office hours, specific schedule), you definitely sound like you were misclassified as a contractor when you should have been an employee. This is actually pretty common unfortunately. I'd recommend filing that determination request with NYS Department of Labor ASAP since it can take weeks to process. While you're waiting, also check if you qualify for any emergency assistance programs through your county's social services department - they might have rent assistance or food programs that can help bridge the gap. Document everything about your work arrangement (emails about schedules, equipment they provided, etc.) because you'll need that evidence for your case.
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Morita Montoya
•This is really helpful advice, thank you! I'm definitely going to start gathering all those emails and documentation right away. Do you know if there's a specific form I need to fill out for the determination request, or do I just call NYS Department of Labor and explain the situation? I'm new to all this and want to make sure I do it right the first time.
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Mei Liu
I went through something really similar about 6 months ago! I was classified as a 1099 contractor but my "client" basically treated me like a regular employee - set my hours, gave me company equipment, told me exactly how to do everything. When they let me go, I filed a SS-8 form with the IRS first to get an official determination, then used that with my NYS Department of Labor claim. It took about 2 months total but I did get approved for UI benefits retroactively. The key thing is documenting EVERYTHING - save all emails about schedules, any employee handbook they gave you, photos of the company equipment, etc. Also keep track of how much control they had over your work methods vs just the end result. Good luck!
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Alice Pierce
•@Mei Liu This is super helpful! I didn t'know about the SS-8 form with the IRS - that sounds like it could really strengthen my case with NYS Department of Labor. Two months isn t'too bad considering I was worried it might take much longer. Did you have to pay anything to file the SS-8 or was it free? And when you say retroactively "-" does that mean you got paid for the waiting period too? I m'definitely going to start collecting all that documentation you mentioned right away.
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Ethan Anderson
I've been through this exact situation! Was working as a "contractor" for a tech startup but they provided my laptop, required me to be in their office 9-5, and micromanaged every aspect of my work. When they terminated my contract, I initially thought I was out of luck for unemployment. But after reading about worker misclassification, I decided to challenge it. I filed with NYS Department of Labor explaining my situation with all the documentation I could gather - emails about required office hours, the equipment agreement, performance reviews that looked exactly like employee evaluations. It took about 6-8 weeks, but they ruled I was misclassified and I was able to get UI benefits. The process was stressful but totally worth it. Start documenting everything NOW while it's fresh in your memory, and don't let them get away with misclassifying you just to avoid paying into unemployment insurance. You worked there, you deserve the protections that come with employment!
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Maya Lewis
•@Ethan Anderson Your story gives me so much hope! It s'crazy how many companies are doing this to avoid paying their fair share into the unemployment system. The fact that you had performance reviews that looked like employee evaluations is a great point - I should check if my marketing agency did anything similar. Did you file the SS-8 form with the IRS that @Mei Liu mentioned, or did you go straight to NYS Department of Labor? I m trying'to figure out the best strategy since I really can t afford'to wait too long without income. Also, when you say micromanaged every "aspect - did" they tell you specific methods to use for your work, not just deadlines? I m trying'to build the strongest case possible.
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