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Ryan Young

Can I collect Washington ESD unemployment if my contract is not renewed?

My 12-month contract with a tech company ends next month and they just told me it won't be renewed due to budget cuts. I've been working full-time there for almost 2 years on back-to-back contracts. Can I file for Washington ESD unemployment benefits when my contract ends? I'm not sure if contract workers qualify since I wasn't technically an employee. Has anyone been in this situation before?

Yes, you can definitely file for unemployment if your contract isn't renewed! I was a contract software developer for 3 years and collected benefits between contracts twice. The key is that you need to have been paying into the unemployment insurance system, which most contract positions do through payroll deductions.

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That's a relief to hear! I do see UI deductions on my paystubs so I think I should be good. How long did it take for your claim to get approved?

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Mine was approved within about 10 days both times. Just make sure you have all your contract documentation ready when you file.

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Contract non-renewal definitely qualifies as involuntary separation for Washington ESD purposes. You'll need to file your claim the week your contract ends. Make sure you have your paystubs and contract agreement handy - they may ask for documentation during the application process.

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What if the contract had an option to renew but they chose not to exercise it? Does that still count as involuntary?

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Yes, if the renewal was at the employer's discretion and they chose not to renew, that's still considered involuntary separation. You didn't quit or get fired for cause.

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I tried calling Washington ESD last week about a similar contract situation and spent 4 hours on hold before getting disconnected. Their phone system is absolutely terrible right now. I eventually found this service called Claimyr (claimyr.com) that helps you get through to actual agents. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much frustration!

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Never heard of that service before. Did it actually work for you?

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Yeah, got connected to an agent within 30 minutes instead of spending all day redialing. They were able to clarify my contract worker status immediately.

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This sounds too good to be true but I might try it if I run into issues filing my claim.

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Wait, I'm confused about something. If you're a contract worker, aren't you technically self-employed? I thought self-employed people couldn't get regular unemployment benefits.

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There's a big difference between being a 1099 contractor and a W-2 contract employee. If you're getting a W-2 and having taxes withheld, you're eligible for unemployment.

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Exactly right. The key is whether you're classified as an employee (W-2) or independent contractor (1099). W-2 contract workers pay into unemployment insurance and can collect benefits.

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ugh the whole contract worker thing is such a mess. companies use us when they need us then dump us when they dont. at least we can get unemployment tho

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I feel you on that. The lack of job security with contract work is really stressful.

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One thing to keep in mind - your benefit amount will be based on your earnings over the past 5 quarters. Since you've been working consistently for 2 years, you should qualify for a decent weekly benefit amount. Make sure to file your weekly claims on time once your initial claim is approved.

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Good point about the weekly claims. How often do you have to file those?

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Every week, usually on Sundays. You can do it online through your SecureAccess Washington account. Just report any work you did that week and any income earned.

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Make sure you understand the job search requirements too. You'll need to make at least 3 job search contacts per week and keep a log of your activities. Washington ESD is pretty strict about this requirement.

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Do they actually check your job search log or is it just something you keep in case they ask?

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They can audit you at any time, so definitely keep detailed records. I got selected for a job search audit last year and had to submit all my documentation.

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The job search requirement is 3 contacts per week minimum. This can include online applications, networking events, job fairs, or contacting employers directly.

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I'm in a similar boat with my marketing contract ending in December. This thread is super helpful! One question - can you collect unemployment if you find another short-term contract right away?

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If you start working again, you need to report those earnings on your weekly claim. Depending on how much you earn, it might reduce or eliminate your weekly benefit for that week.

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Yeah, there's a formula they use. I think you can earn up to about 1.5 times your weekly benefit amount before you lose eligibility for that week.

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Pro tip: File your claim online as soon as your contract ends, don't wait. There's usually a one-week waiting period before benefits start, so the sooner you file, the sooner you can start receiving payments.

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Good to know about the waiting period. I was planning to take a week off anyway to decompress after this project ends.

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Just wanted to follow up on the Claimyr thing I mentioned earlier. I used them again yesterday to check on my claim status and it was super smooth. Way better than trying to get through on the regular Washington ESD phone lines. Definitely recommend if you need to talk to someone about your contract situation.

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How much does it cost? I'm always skeptical of services that charge to help with government stuff.

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It's worth it considering how impossible it is to reach Washington ESD otherwise. Check out their demo video to see how it works - no obligation to sign up.

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Been doing contract work for 8 years and have filed for unemployment probably 6 times between contracts. Never had any issues as long as you're a W-2 employee and not a true independent contractor. The process is pretty straightforward once you get used to it.

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That's reassuring to hear from someone with so much experience. Any common mistakes I should avoid when filing?

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Main thing is to be accurate about your last day of work and your reason for separation. Don't say you quit if your contract wasn't renewed - that's involuntary separation.

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washington esd is so backed up right now. took them 3 weeks to process my last claim and i had to keep calling to check status. hope yours goes smoother

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3 weeks?? That's crazy. I really hope mine doesn't take that long.

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Processing times can vary a lot depending on the complexity of your claim. Contract workers sometimes get flagged for additional review, but it usually resolves quickly.

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One thing nobody mentioned - if your contract was through a staffing agency, make sure you understand who your actual employer was for unemployment purposes. Sometimes it's the agency, sometimes it's the client company.

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Mine was direct with the company, not through an agency. But good point for others to consider.

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Also worth mentioning - you can usually file your claim online at secure.esd.wa.gov starting on Sunday after your last day of work. Don't wait until Monday morning because the system gets overloaded.

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Thanks for the website link! I'll bookmark that for when I need to file.

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I had my contract non-renewed last year and got unemployment no problem. The only hiccup was they needed additional documentation about my work authorization status, but that got sorted out quickly. Just be prepared to provide extra paperwork if requested.

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What kind of documentation did they ask for? I want to have everything ready just in case.

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They wanted copies of my I-9 verification documents and my most recent contract agreement. Nothing too complicated.

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Quick reminder about the job search requirements - you need to register with WorkSourceWA as part of your claim. They'll walk you through that during the application process, but it's another step to complete.

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Is WorkSourceWA helpful for finding contract positions or is it mostly regular full-time jobs?

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They have both, but you'll probably have better luck with contract positions on specialized job boards. Still required to register though.

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Thanks everyone for all the helpful info! This gives me confidence about filing when my contract ends next month. Sounds like as long as you're a W-2 employee and the non-renewal wasn't your choice, you should be good to go.

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Exactly right. Contract non-renewal is a very common and straightforward unemployment claim. Just file promptly and keep good records.

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One last plug for Claimyr - if you do run into any issues or need to speak with someone at Washington ESD about your contract situation, definitely check them out. Saved me hours of frustration trying to get through on the phone.

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I might have to try that next time. The hold times are absolutely brutal these days.

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Update: I talked to my HR contact and confirmed I'm classified as a W-2 employee, so I should be all set to file when my contract ends. Thanks everyone for the advice and reassurance! This community is awesome.

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Great to hear! You'll be fine with the W-2 status. Good luck with the job search once you start collecting benefits.

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Perfect. You're in good shape then. Remember to file that first week after your contract ends and you should have benefits flowing within a couple weeks.

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Just wanted to add that if you're filing for the first time as a contract worker, don't be surprised if they ask for additional verification of your employment status. I had to submit my contract agreement and a few recent paystubs to prove I was a legitimate W-2 employee. The extra step delayed my approval by about a week, but once they verified everything, my benefits started without any issues. Keep digital copies of all your contract paperwork handy when you file!

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That's really helpful advice about keeping digital copies! I've been pretty disorganized with my contract paperwork, so I'll make sure to scan everything before I file. Did they ask for anything else besides the contract and paystubs?

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They also asked me for a letter from my employer confirming the end date of my contract and stating that the non-renewal was due to business reasons, not performance issues. It wasn't hard to get - just had to email HR and they sent it over within a day. The whole verification process was pretty straightforward once I had all the documents together.

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