PA UC crisis: Employer falsely claiming I'm self-employed, benefits stopped & appeal filed
I'm in a complete panic right now! Been working for this company for 14 months as a regular W-2 employee. Suddenly they're telling PA UC that I'm self-employed (which is 100% FALSE). My weekly payments just stopped without warning and I just got a notice that my employer filed an appeal against my claim!! I've NEVER dealt with unemployment before and I'm totally lost. My bills are due next week and I have no idea what to do next or how to fight this. Do I need a lawyer? Is there a form I need to fill out? Will I have to attend some kind of hearing? How long does this process take?? This feels like my employer is trying to avoid paying their unemployment taxes. Has anyone dealt with an employer trying to misclassify them to deny benefits? Please help!
19 comments
Sofia Torres
Ok first dont panic! This happens more than you think. When your employer files an appeal, PA UC will schedule a hearing where both sides present their case. You'll get a notice in the mail with the date/time (usually phone hearing). You NEED to gather: 1) All pay stubs showing tax withholding 2) Your W-2 from last year 3) Any work schedule or communications showing they controlled when/how you worked 4) Employment contract if you have it The key is proving they treated you as an employee, not a contractor. Did they control your schedule? Provide equipment? Train you? These all point to employment not self-employment. I went through this exact thing with my cleaning service job in 2023. Make SURE you attend the hearing!
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Dylan Wright
•Thank you so much!! I do have all my pay stubs with taxes taken out and my W-2. They definitely controlled my schedule (set hours every week) and I used their equipment at their facility. I never signed anything saying I was an independent contractor. Do you know how long until the hearing usually happens? And will my benefits be completely stopped until then?
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GalacticGuardian
This is what we call a "misclassification issue" and unfortunately it's super common these days. Your employer is clearly trying to avoid paying unemployment tax by falsely claiming you're self-employed. The good news is PA Dept of Labor takes these cases seriously. For the hearing: - Document how they paid you (direct deposit? regular paychecks?) - Screenshots of any communications where they give you instructions - Names of supervisors who managed your work - Any company policies you had to follow Yes, payments stop during the appeal period which totally sucks. The hearing should be scheduled within 6-8 weeks, but the system is slammed right now so it might take longer.
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Dmitry Smirnov
•THIS!!! Companies pull this garbage all the time to avoid taxes. My brother went through this working for a delivery company - they tried saying all drivers were "independent contractors" even though they wore company uniforms and drove company vans lol. He won his case but it took 3 months!!
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Ava Rodriguez
u should call the UC service center to explain ur side b4 the hearing. they might be able to do something faster. but they NEVER answer phones lol good luck
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Miguel Diaz
•Exactly! I had a similar issue last month and I tried calling literally 37 times in one day. Always busy signal or it just hangs up. The system is BROKEN!!! I finally used Claimyr to get through (claimyr.com) - it calls for you and gets you in the callback queue without all the busy signals. Saved me hours of redial hell. There's a short video that explains how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 When I finally got through, they fixed my issue in like 10 minutes. Sometimes you just need to actually talk to a human at UC.
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Zainab Ahmed
My construction company tried to do this exact thing to me to avoid taxes. Here's what you need to understand about employee vs contractor status in PA: EMPLOYEE indicators (what you want to prove): - Company controls WHEN and HOW you work - They provide tools/equipment - They train you - Regular set schedule - You don't have other clients/customers - They withhold taxes CONTRACTOR indicators (what they're claiming): - You control your own schedule - You use your own equipment - You have multiple clients - You're paid by project, not hourly - No tax withholding During the hearing, be very specific about how they controlled your work. If they're claiming you're self-employed but withheld taxes on your checks, that's a HUGE contradiction that helps your case. UC hearings are actually pretty fair in my experience.
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Dylan Wright
•This is super helpful - thank you. I'm definitely an employee by all these measures. They set my schedule (9-5 M-F), I work at their location using their equipment, they trained me when I started, and they've always withheld taxes. I've never had any other clients or done any work outside of my regular job with them. I'm just worried because the letter mentions something about a "burden of proof" - does that mean I have to prove I'm an employee, or do they have to prove I'm self-employed?
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Sofia Torres
For that "burden of proof" question - in PA, when an employer claims misclassification AFTER initially not contesting your claim, the burden of proof is on THEM, not you. They have to prove you're self-employed. BUT you still need to present your evidence. The Referee (that's what they call the hearing officer) will look at all factors. Don't stress too much about legal terms - just tell the truth about your work situation and provide your documents. Another tip: Write down a simple timeline of your employment before the hearing so you don't get flustered. Include start date, position, pay rate changes, etc.
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Connor Gallagher
this happened 2 me too!!! my boss said i was "1099" but i never signed anything like that!!!! the hearng was scary af but i just told them how it really was. took like 2 months to get my $$ but i got BACKPAY for all the weeks i missed!!!! dont give up!!!!
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Dylan Wright
•That's really good to know about the backpay! I was worried that money would just be gone forever. Did you have to do anything special to get the backpay, or did they just automatically pay you for those missed weeks after you won?
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Dmitry Smirnov
The NERVE of these companies!!! My friend works HR and says they're doing this all over PA right now to save money. It's ILLEGAL! Make sure to keep filing your weekly claims even though you're not getting paid - that way when you win (and you will) you'll get all that back pay. Also the PA dept of revenue might be interested to know they're playing tax games. Just saying...
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GalacticGuardian
To answer your question about backpay - yes, you need to continue filing your weekly claims even during the appeal period when you're not getting paid. This establishes that you were eligible during those weeks. If you win the appeal, they'll automatically process payments for all the weeks you certified. Regarding the hearing itself, it will be scheduled with a UC Referee (that's what PA calls their hearing officers). Both you and your employer will receive the same notice with the date/time. Most hearings are still being conducted by phone due to the backlog. During the hearing: 1) Stay calm and professional (even if your employer lies) 2) Answer questions directly and briefly 3) Only speak when asked a question 4) Have your documents ready to reference 5) Take notes on what your employer claims You don't need a lawyer, but you can have one if you want. These hearings are designed to be navigated without attorneys.
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Dylan Wright
•Thank you so much for all this information! I'll definitely keep filing my weekly claims. One more question - the notice mentions I can have witnesses. Should I ask any of my coworkers to testify that I'm a regular employee? I'm worried they might get in trouble with the company if they help me.
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Zainab Ahmed
Witnesses can be helpful, but only if they have direct knowledge of your employment relationship. A coworker might not know the legal details of how you were classified. Better witnesses would be: 1) Your direct supervisor (though unlikely they'd testify against the company) 2) HR person (same issue) 3) Payroll person (same issue) 4) Anyone who can verify you were treated exactly like other W-2 employees Your documentation will likely be more powerful than witness testimony in this case. The pay stubs with tax withholding are your strongest evidence - if they were treating you as self-employed, they wouldn't be withholding taxes! Also, I just want to add: If your employer is doing this to you, they're probably doing it to others. The PA Department of Labor has a specific division that investigates worker misclassification. You might want to file a complaint there too.
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Ava Rodriguez
my cousin said u can also check ur wage records on the UC site to see what ur company reported about ur wages... might help ur case
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Miguel Diaz
•Yes, this is a good tip! Go to your PA UC dashboard and look for "View Wage Records" - it shows what wages your employer reported each quarter. If they reported you as an employee previously and are now saying you're self-employed, that's a huge red flag the Referee will notice right away. Screenshot these pages NOW in case they try to change anything. The system sometimes updates when employers make corrections.
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Dylan Wright
Thank you all so much for the advice! I just checked my UC dashboard and found my wage records - they've been reporting me as an employee with regular wages every quarter until now! I've taken screenshots of everything. I'm still nervous about the hearing but feeling much more prepared. I'll definitely keep filing my weekly claims while I wait. I'm going to gather all my pay stubs, W-2, and any emails showing they controlled my schedule. If I have any other questions before the hearing, I'll post again. You've all been incredibly helpful during this stressful time!
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Sofia Torres
•You've got this! Come back and let us know how the hearing goes. With the evidence you have, especially those wage records showing they previously reported you as an employee, you're in a strong position. These misclassification cases are frustrating but winnable when you have the documentation.
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