Can I get ESD unemployment if my brother laid me off from his construction company?

Yes, you can absolutely file for unemployment in this situation. What matters to ESD is that: 1) You were a legitimate W-2 employee with taxes withheld, 2) You were laid off for lack of work, and 3) You meet the other eligibility requirements (able to work, actively seeking work, etc.). The family relationship doesn't automatically disqualify you - what matters is that it was legitimate employment and a legitimate layoff. Just make sure all your past wages were properly reported to ESD each quarter so they show up in their system.

Thank you!! That makes me feel better. I know we did everything legit with taxes and stuff. I'm just worried they might think it's suspicious or something since we're family.

i got denied when i worked for my uncles company they said it was a \

There are rules about family employment, but it depends on how the business is structured. If the business is a sole proprietorship or partnership where your family member is an owner, there can be restrictions. But in corporations or LLCs, family employees are typically treated like any other employee for unemployment purposes. The key is whether proper employment taxes were paid on your wages.

When you file, ESD is definitely going to look at this more carefully. Family business layoffs are one of the things they scrutinize because some people try to game the system. BUT as long as:\n\n- Your brother's business is properly registered (LLC, corporation, etc)\n- You were paid as a regular employee with proper tax withholding\n- The business genuinely doesn't have work for you right now\n- Your brother's business has been paying into the unemployment insurance system\n\nThen you should qualify. Just be prepared for them to possibly put your claim in adjudication while they verify everything. It might take longer than a regular claim.

Oh man, I hope it doesn't get stuck in adjudication forever. What kind of documentation should I have ready? I can get copies of my paystubs and W-2s.

I went through almost this EXACT situation in 2024! My sister owned a flooring business and had to lay me off. ESD put my claim in adjudication for WEEKS and kept asking for more documentation. They eventually approved it but it was a nightmare trying to get through to anyone on the phone to check my status.\n\nI finally got through using Claimyr (claimyr.com) - it got me past the busy signals and connected to an actual person at ESD who could explain what was happening with my claim. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3\n\nDefinitely save all your paystubs, any hiring paperwork, and be ready to explain exactly what your job duties were. They might contact your brother to verify the reason for separation too.

Thanks for the tip about Claimyr! I'll check that out if I start having trouble getting through. Did they ask your sister a bunch of questions? I don't want my brother to get in trouble or anything.

One more important thing - make sure your brother responds promptly to any ESD requests for information about your employment. If the employer doesn't respond, it often leads to delays or denials. Also, be 100% honest about your relationship when you file - if they discover it later and you didn't disclose it, they might view it as attempted fraud.

Good point. I'll definitely be upfront about him being my brother. I just hope that doesn't automatically trigger a huge investigation or something.

my cousins wife worked for his dad's plumbing company and she got unemployment when they downsized but it took like 10 weeks to get approved lol dont expect it to be quick

I think everyone is overcomplicating this. If you were a REAL employee (not under the table) and your brother's business paid unemployment insurance taxes, you're eligible just like any other laid-off worker. The family relationship might get more scrutiny, but it's not automatically disqualifying.\n\nMake sure when you do your weekly claims you're doing at least 3 job search activities each week and documenting them properly. That's where a lot of people mess up and lose benefits even after being approved.

Thanks, that makes sense. We definitely did everything by the book with taxes and everything. And I'll make sure to do all the job search requirements properly!

Just wondering... is your brother's business still operating just with fewer employees, or is he completely shutting down? That might make a difference too.

He's still in business, just had to scale back. He's basically doing most jobs himself now with maybe occasional day labor when needed. He had to let go of me and one other guy.

That should be fine then - clearly a legitimate business reason for the layoff. Just make sure you're available for suitable work and not just waiting to go back to your brother's company when things pick up (they call that

Came back to add: Now that it's 2025, remember the job search requirements are 3 activities per week, and at least one must be an application or resume submission (not just looking at job listings). They've gotten much stricter about verifying job search activities so keep detailed records of everything.

Thanks for the reminder! I'll definitely keep detailed records of all my job search activities.

Just to update you - I checked the most current ESD guidelines, and for 2025, family employment exclusions only apply to certain business structures:\n\n1. Sole proprietorships: Employment of spouses, parents, or children under 18 may be excluded\n2. Partnerships: Employment of partners or their spouses, parents, or children under 18 may be excluded\n3. LLCs and Corporations: Family relationships generally don't matter - employees are employees\n\nSo if your brother's construction company is an LLC or corporation, you should be fine. If it's a sole proprietorship or partnership, there could be issues. You can find this in the ESD Employer Handbook on their website.

That's really helpful! His business is an LLC, so sounds like I should be eligible. I'm going to go ahead and apply today. Thanks everyone for all the advice!