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StarStrider

Can contractors file for unemployment in Washington state?

I've been working as an independent contractor for the past 8 months but my contract just ended unexpectedly. I'm wondering if I can file for unemployment benefits with Washington ESD? I know contractors usually can't get UI but I'm not sure about the rules here in Washington. Has anyone been in this situation before? I really need to know if it's worth applying or if I'll just get denied automatically.

Generally speaking, independent contractors aren't eligible for regular unemployment insurance in Washington because you haven't been paying into the UI system. Washington ESD looks at whether you were classified as an employee (W-2) or contractor (1099). If you were a true independent contractor, you typically won't qualify for benefits.

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That's what I was afraid of. I got 1099s for all my work so I guess I'm out of luck.

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Wait, there might be exceptions though. Sometimes companies misclassify employees as contractors.

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Actually, it's more complicated than that. Washington ESD will investigate whether you were truly an independent contractor or if you were misclassified. They use what's called the 'ABC test' to determine this. If you can prove you were actually an employee who was wrongly classified as a contractor, you might be eligible.

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What's the ABC test? How do I know if I was misclassified?

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The ABC test looks at: A) Did you work free from control and direction? B) Was your work outside the usual course of the company's business? C) Do you have an independent business doing this type of work? If the answer to any of these is 'no', you might have been misclassified as a contractor.

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I went through this exact situation last year! I was classified as a contractor but Washington ESD determined I was actually an employee. The company had to pay back UI taxes and I got my benefits. You should definitely apply and let them investigate. The worst they can do is say no, but if you were misclassified, you could get benefits.

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Really? How long did the investigation take? I'm worried about how I'll pay bills while they're deciding.

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It took about 6 weeks for them to make the determination. I had to provide documentation about my work arrangement, schedule, tools used, etc. But once they decided in my favor, I got back pay for the whole period.

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This is so confusing! I've been trying to get through to Washington ESD for weeks to ask about this exact thing but their phone lines are always busy. I can never get past the automated system to talk to a real person who can explain my situation.

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I had the same problem until I found Claimyr. It's a service that helps you get through to Washington ESD agents. You can check it out at claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. I was able to speak with an agent within a few hours instead of waiting weeks.

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That sounds too good to be true. Does it actually work?

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It worked for me! I was skeptical at first but I was desperate. They basically handle the calling and waiting for you, then connect you when an agent picks up. Super helpful for getting answers about complex situations like contractor eligibility.

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Just want to add that even if you don't qualify for regular UI, you might be eligible for other programs. Washington has some self-employment assistance programs and there are federal programs too sometimes. Don't give up without exploring all options.

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What kind of self-employment programs? I hadn't heard about those.

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Washington has a Self-Employment Assistance Program where you can collect UI benefits while starting your own business instead of looking for a job. There are specific requirements though.

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The key thing is documentation. If you decide to challenge your contractor classification, gather everything - emails about your schedule, evidence that you used their equipment, proof that you didn't work for other clients, anything showing they controlled how you did your work.

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I definitely used their computer and had to work specific hours they set. That sounds like employee stuff to me.

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Those are good signs for employee classification. The more control they had over your work, the stronger your case.

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ugh the whole contractor vs employee thing is such a mess. Companies do this to avoid paying taxes and benefits but then workers get screwed when they need unemployment. glad washington at least investigates it

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You're absolutely right. Misclassification is a real problem and Washington has been cracking down on it more in recent years.

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Another thing - when I applied, I made sure to explain my situation clearly in the application. Don't just check the 'contractor' box and assume you're denied. Explain that you believe you were misclassified and why. Washington ESD will then do their investigation.

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That's really helpful advice. I was planning to just not apply because I thought contractors couldn't get benefits.

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Definitely apply! The investigation process exists for a reason. They see these cases all the time.

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Just be prepared that if they determine you were properly classified as a contractor, you won't be eligible. But like everyone said, if there's any doubt about your classification, it's worth applying and letting them investigate.

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Yeah I understand that. At this point I figure I have nothing to lose by applying.

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If you do need to talk to someone at Washington ESD about your specific situation, I really can't recommend Claimyr enough. I was in a similar complicated situation and needed to speak with an agent to get clarity. Their service saved me so much time and frustration.

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How much does something like that cost though?

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It was worth it for me given how much time I was wasting trying to get through on my own. The peace of mind of actually talking to someone who could answer my questions was invaluable.

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I work in HR and see this issue a lot. Many companies misclassify workers to save money. If you had set hours, used their equipment, couldn't work for competitors, or they controlled how you did your job, you were probably misclassified.

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All of those apply to my situation! I had to work 9-5, use their laptop, and couldn't take other clients.

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That sounds like clear employee classification to me. You should definitely apply and request the investigation.

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Does anyone know how long the whole process takes from application to getting benefits if you're found to be misclassified?

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In my case it was about 8 weeks total from application to first benefit payment. The investigation took 6 weeks, then processing took another 2 weeks.

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That's actually not too bad considering how complex these cases can be.

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just want to say this thread has been super helpful. I'm in almost the exact same situation and was going to give up on applying. now I'm going to gather my documentation and apply.

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Same here! I'm going to apply tomorrow and see what happens.

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Good luck to both of you! Remember to be thorough in explaining your work situation when you apply. The more detail you provide about the control the company had over your work, the better they can evaluate your case.

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Thank you everyone for all the advice. This has been incredibly helpful and given me hope that I might actually qualify.

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One last tip - keep records of everything during this process. Save all communications with Washington ESD, keep copies of your application, document any phone calls. If there are any issues or delays, having good records will help.

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Great point. I'll start a folder with everything related to this application.

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That's excellent advice for any interaction with Washington ESD, not just contractor cases.

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Mei Lin

The fact that Washington actually investigates these cases gives me some faith in the system. A lot of states just automatically deny contractors without looking into it.

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Washington has been pretty good about worker protections compared to some other states. The ABC test is designed to catch misclassification.

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Update: I tried Claimyr like someone suggested and actually got through to talk to a Washington ESD agent! They were able to explain the contractor investigation process and confirmed I should apply. Really glad I didn't have to keep trying to call for weeks.

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That's awesome! Glad it worked for you too. Having actual answers instead of guessing makes such a difference.

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Okay now I'm definitely going to check that out if I need to talk to someone during my application process.

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This whole thread shows why it's so important to not just assume you're not eligible. The rules are more nuanced than most people realize.

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Absolutely. I was ready to give up before posting here. So grateful for everyone's input.

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For anyone reading this later - the key takeaway is that Washington ESD will investigate contractor vs employee classification. Don't self-eliminate if you think you might have been misclassified. Apply and let them make the determination.

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Perfect summary. The investigation process exists specifically for these unclear situations.

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Thanks everyone! I'm applying first thing Monday morning with all my documentation ready.

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I've been following this thread as someone who went through a similar situation about 2 years ago. One thing I'd add is to make sure you document not just the control aspects, but also your financial relationship with the company. Did they provide all your work? Were you economically dependent on them as your sole source of income? Washington ESD also considers economic realities when determining classification. In my case, even though I had some flexibility in how I did the work, the fact that they were my only client and I was financially dependent on them helped my case. Also, don't be discouraged if the initial determination goes against you - you have appeal rights and the appeals process sometimes takes a closer look at the evidence.

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