Contract not renewed - can I collect NYS Department of Labor unemployment benefits?
My one-year consulting contract with a tech company just ended and they decided not to renew it. I wasn't fired or anything, they just said they're going in a different direction. I was working as a 1099 contractor but I've been paying into unemployment through my LLC for the past two years. Can I file for unemployment benefits with NYS Department of Labor even though my contract just wasn't renewed? I'm not sure if this counts as being laid off or what. Has anyone been in this situation before?
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StarStrider
Yes, you can potentially collect unemployment if your contract wasn't renewed, but it depends on how you were classified and whether you were paying into the UI system. Since you mentioned paying into unemployment through your LLC, that's a good sign. When you file with NYS Department of Labor, they'll review your work history and earnings to determine eligibility. The key is that the contract ending wasn't due to misconduct on your part.
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Sean Murphy
•Thanks! I definitely wasn't let go for any misconduct. The project just ended and they didn't have another one ready. Should I file right away or wait to see if they offer me something else?
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Zara Malik
I had the exact same thing happen last year. My 6-month contract ended and the company said budget cuts meant no renewal. I filed immediately with NYS Department of Labor and was approved after about 3 weeks of adjudication. The important thing is to file right away because there's a waiting period anyway. Don't wait around hoping they'll call you back - you can always stop claiming if they offer you new work.
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Luca Marino
•How long did the adjudication take? I'm in a similar boat and filed two weeks ago but still showing pending.
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Zara Malik
•Mine took about 3 weeks total. They had to verify my contractor payments and work history. Just be patient and keep checking your account on my.ny.gov every few days.
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Nia Davis
Been calling NYS Department of Labor for weeks trying to get through about my contractor claim status and it's impossible. The phone system just hangs up on you after being on hold forever. So frustrating when you need answers about adjudication delays!
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Mateo Perez
•I had the same problem until someone told me about Claimyr (claimyr.com). They actually get you through to a real NYS Department of Labor agent. I watched their demo video (https://youtu.be/qyftW-mnTNI) and decided to try it. Got through in like 20 minutes instead of hours of calling myself. Totally worth it when you're stuck in adjudication limbo.
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Aisha Rahman
wait are you sure you were paying unemployment taxes as a contractor?? most 1099 workers dont pay into UI unless they specifically elected to do it. you might want to double check your records before filing because if you werent paying in you wont be eligible
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Sean Murphy
•Yeah I'm pretty sure I was. My accountant set it up when I started the LLC. I'll double check my quarterly payments though, thanks for the heads up.
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CosmicCrusader
Contract work is so unstable, this is exactly why I stick to W2 jobs. At least then you know you're covered for unemployment. Hope it works out for you!
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Norman Fraser
I went through something similar as a contractor last year. The key thing is that since you were paying into UI through your LLC, you should be eligible - that's exactly what those payments are for. I'd recommend filing immediately because even if they do call you back with new work, you can always stop claiming benefits at that point. The NYS Department of Labor application process for contractors can take longer than regular employees since they have to verify your payment history, so don't wait. Also make sure you have documentation of your quarterly UI payments ready when you file - it'll speed up the process.
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Keisha Williams
•This is really helpful advice! I'm new to the contractor world and wasn't sure if the UI payments I've been making would actually count for anything. Good to know that filing right away is the smart move even if there's a chance of getting more work. Did you have any issues with them verifying your contractor status, or was it pretty straightforward once they saw your payment records?
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