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Jamal Harris

Can you collect PA UC benefits if you worked for a family member's business?

I've been working full-time at my dad's construction company for the past 3 years (all on the books, W-2 employee with proper taxes taken out). The business is struggling and he had to lay me off last week. When I mentioned filing for unemployment, he got worried and said family businesses might be treated differently. Can I still file for UC in Pennsylvania if I worked for a parent's business? Also wondering if the rules are different if someone works for their child's company? I'm getting conflicting advice from friends and don't want to file if I'm not eligible.

Mei Chen

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Yes, you CAN collect UC benefits if you worked for a family member's business, BUT there are special rules that apply. Since you were a W-2 employee with proper tax withholding, that's a good start. The PA UC office will scrutinize family employment more carefully to make sure it was legitimate employment and a genuine layoff (not just helping you collect benefits). You'll need to prove: 1. The layoff was due to lack of work (legitimate business reasons) 2. You didn't have substantial ownership or control of the business 3. Your wages were reported properly Same rules apply whether you work for a parent's or child's business. Be prepared for extra questions during the process.

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Jamal Harris

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Thank you for the detailed explanation! My dad owns 100% of the business, and I was just a regular employee. We've had other layoffs too because work has really slowed down. Will the UC office contact my dad to verify all this? I'm worried because English isn't his first language and he gets nervous with official stuff.

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Liam Sullivan

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my cousins wife worked at his dads auto shop and got denied. they said something about "family employment" being exempt. but idk maybe its different for different types of businesses?

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Jamal Harris

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Oh no, that's exactly what I'm worried about. Did your cousin's wife appeal the decision or just give up? Did they say specifically why she was denied?

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Amara Okafor

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The key factor here is whether this was legitimate employment with proper tax withholding and reporting. PA UC does scrutinize family employment claims more carefully, but they don't automatically deny them. The UC office primarily looks at: - Were you paid like other employees? - Was the work necessary for the business? - Were proper payroll taxes paid? - Was the layoff for legitimate business reasons? Family employment is evaluated case-by-case. Working for a parent's or child's company follows the same rules. Document everything thoroughly when you file.

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Jamal Harris

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Yes to all of those questions. I was paid the same hourly rate as other workers with similar experience, all taxes were properly withheld, and I performed actual needed work. The layoff happened because three projects got cancelled and there simply isn't enough work right now. Should I include any specific documentation when I file my initial claim to help prove this?

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They WILL investigate family business claims!!! I worked for my brother's company for 2 years and when I filed they put me through the wringer. Had to provide tons of documentation, paycheck stubs, tax records, everything. My claim was stuck in limbo for almost 2 months before they finally approved it. Don't get your hopes up for quick payment.

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Yep same here. They flagged my claim immediately when they saw I worked for my mom's business. Had to do a special interview and everything. But I did eventually get approved, just took WAY longer than a normal claim.

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I tried calling PA UC about this exact situation last year when my sister-in-law who worked for our family restaurant needed to file. Couldn't get through to anyone for DAYS. Busy signals, disconnects, the whole nightmare. Finally used Claimyr.com to reach an agent (they have this service that gets you through to UC - there's a video explaining how it works here: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2). The agent confirmed family employment CAN qualify but they do extra verification. My sister-in-law got approved after answering their questions during the phone interview.

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Jamal Harris

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Thanks for the tip! I've been trying to get through on the phone with no luck. I'll check out that service if I keep having trouble. Did your sister-in-law have to provide any special documentation beyond the normal claim filing stuff?

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Liam Sullivan

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wait i just remembered my cousins wife got denied cuz she was an "officer" in the company or something? like on paper she was listed as secretary even tho she just answered phones. maybe thats why?

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Mei Chen

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Yes, that would explain it! If you're an officer or have an ownership stake in the business (even as a family member), you're generally not eligible for UC benefits. The rules specifically exclude corporate officers and owners from unemployment compensation in most cases.

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Dylan Cooper

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My advice: file your claim and be 100% honest about everything. Don't try to hide that it's a family business - they'll find out anyway. Make sure your dad is prepared to confirm that: 1. Your layoff was due to lack of work 2. You didn't have unusual privileges as a family member 3. You were a regular employee, not a co-owner I went through this in 2020 with my aunt's business. Had to wait longer than normal, but I did get approved. Just be prepared for an interview and possibly having to submit extra documentation.

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Jamal Harris

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Thanks, that's really helpful! I'll make sure my dad understands what information they might ask him. I definitely plan to be completely transparent about the family relationship.

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Amara Okafor

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Based on everything you've shared, you should be eligible for benefits since: - You were a W-2 employee with proper tax withholding - You had no ownership stake in the business - The layoff was due to legitimate business conditions - You were paid comparably to other employees Expect your claim to take longer than average to process, and be prepared for a fact-finding interview. Have your recent pay stubs, W-2s, and any documentation about the layoff ready. Your father should also be prepared to confirm these details if contacted by the UC office.

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Jamal Harris

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Thank you so much for the clear guidance! I feel much better about filing now. I'll gather all those documents and prepare my dad for potential questions. Hopefully the process goes smoothly, but at least now I know what to expect with the extra scrutiny.

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DON'T FORGET to do your weekly claims even while waiting for them to approve your initial claim!!! That was my big mistake - I waited to do weekly claims until after my family employment issue was resolved, and they wouldn't backdate them. Lost like 6 weeks of benefits I should have gotten!

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Jamal Harris

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That's really good advice, thank you! I would have probably made the same mistake thinking I needed to wait for approval first.

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Daniel White

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Just wanted to add that Pennsylvania specifically allows UC benefits for family employees as long as certain conditions are met. The key is that your employment relationship must be "bona fide" - meaning it's real employment, not just a family arrangement to get benefits. From what you've described (3 years of W-2 employment, proper taxes, legitimate layoff due to business conditions), you should definitely file. The fact that other employees were also laid off will actually help your case since it shows the layoff wasn't just targeting you. One tip: when you file online, there's a section where you can add notes about your employment. Mention that you were a regular employee with no ownership interest and that the layoff affected multiple employees due to cancelled projects. This can help speed up the review process. Good luck - sounds like you have a solid case!

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Lucas Parker

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This is exactly the kind of detailed, practical advice I was looking for! Thank you for explaining the "bona fide" employment concept - that makes a lot of sense. I'm definitely going to include those details in the notes section when I file online. Having other employees laid off at the same time should really help demonstrate this was a legitimate business decision and not just a family arrangement. I feel confident now that I should file and just be prepared for the extra review process. Really appreciate everyone's help on this thread!

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Ravi Patel

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I went through this exact situation about 6 months ago - worked for my uncle's plumbing business for 4 years before he had to let me go due to a downturn in commercial contracts. PA UC did approve my claim, but like others mentioned, it took about 6-7 weeks longer than a typical claim. They scheduled a phone interview where they asked detailed questions about my job duties, pay structure, and the circumstances of the layoff. They also contacted my uncle to verify everything matched up. One thing that really helped was that I kept copies of all my timesheets and could show I worked the same hours and got paid the same rate as non-family employees. I also had documentation showing when the business started struggling (cancelled contracts, reduced work orders, etc.). The investigator told me they see a lot of fake family employment claims, so they're extra careful, but legitimate cases do get approved. Just make sure you and your dad are on the same page about all the details before they call - any inconsistencies will raise red flags. File your claim ASAP though - the sooner you start the process, the sooner you'll get through the review period!

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Noah Ali

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This is incredibly helpful - thank you for sharing your actual experience! It's reassuring to hear from someone who went through the same situation successfully. I'll definitely make sure my dad and I are completely aligned on all the details before they call either of us. The tip about keeping documentation of the business struggles is great too - we do have records of the cancelled projects and reduced work orders that led to the layoffs. I'm going to file my claim tomorrow and just be patient with the longer review process. Really appreciate you taking the time to share the specifics of what worked for you!

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