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Lydia Santiago

Can you get unemployment as a contractor in Washington state?

I've been working as an independent contractor for the past two years doing web development work. My main client just ended our contract and I'm wondering if I can file for unemployment benefits with Washington ESD? I know contractors don't usually qualify but I'm not sure if there are any exceptions or if things have changed recently. Has anyone else been in this situation?

Generally speaking, independent contractors don't qualify for regular unemployment benefits in Washington because they're not considered employees. Washington ESD looks at whether you had wages withheld and unemployment taxes paid on your behalf. As a contractor, you likely received 1099s instead of W-2s.

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That's what I was afraid of. I got 1099s for all my work. Are there any other options for contractors who lose work?

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You might want to check if you qualify for any other assistance programs, but for regular UI benefits through Washington ESD, contractors typically don't qualify unless they were misclassified as contractors when they should have been employees.

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The key thing Washington ESD looks at is the employer-employee relationship. If you were truly an independent contractor - setting your own hours, using your own equipment, having multiple clients - then no, you won't qualify for unemployment benefits. However, if you were misclassified and should have been treated as an employee, you might have a case.

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I did set my own hours and used my own computer, but I only had one main client for most of the time. Does that matter?

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Having one main client doesn't automatically make you an employee, but it's one factor Washington ESD considers. They look at the whole picture - who controlled how the work was done, who provided tools, etc.

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I had a similar situation last year. I was doing marketing consulting and thought I might qualify because my client treated me almost like an employee. I tried calling Washington ESD but couldn't get through for weeks. Finally used claimyr.com to get connected to an actual agent who explained the contractor rules to me. Turns out I didn't qualify, but at least I got a clear answer. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Thanks for the tip! I've been trying to call Washington ESD for days with no luck. How much does that service cost?

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It's worth checking out their site for pricing info. For me, it was worth it just to get a definitive answer instead of guessing.

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Never heard of claimyr before but that's genius. I've wasted so many hours on hold with Washington ESD.

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wait so if you're a contractor you can't get any unemployment at all? that seems unfair since we pay taxes too

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Contractors pay self-employment taxes, not unemployment taxes. The unemployment system is funded by employers paying unemployment taxes on behalf of their employees. Since contractors don't have employers paying into the system for them, they don't qualify for benefits.

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oh i see, i didn't know there was a difference between the taxes

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There might be some exceptions depending on your specific situation. Washington ESD sometimes reclassifies workers who were incorrectly labeled as contractors. You'd need to provide documentation showing you were essentially functioning as an employee - like if they controlled your schedule, provided training, or restricted you from working for others.

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They did provide some specific training and had me sign a non-compete agreement. Would that help my case?

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Those are definitely factors that suggest more of an employee relationship. A non-compete especially suggests they were trying to control your work options. You should definitely apply and let Washington ESD make the determination.

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Agreed. The non-compete is particularly telling since true independent contractors should be free to work for multiple clients.

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I'm going through this exact same thing right now! Filed my claim three weeks ago and Washington ESD is doing an adjudication to determine if I was really a contractor or should have been classified as an employee. Still waiting to hear back.

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How long did they say the adjudication would take? And what kind of documentation did you have to provide?

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They said it could take 4-6 weeks. I had to submit my contract, emails showing how they directed my work, and documentation of any benefits or training they provided. Also had to fill out a worker classification questionnaire.

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The whole contractor vs employee thing is so confusing. I work for a company that calls everyone contractors but we all work the same hours and use their equipment. Sounds like half the 'contractors' out there should actually be employees.

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You're absolutely right. Misclassification is a huge problem. Companies save money by calling workers contractors, but it hurts workers who lose out on benefits and protections.

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Exactly! And then when something goes wrong, we're stuck with no safety net.

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Update: I decided to go ahead and file a claim. Figure it's worth letting Washington ESD make the determination rather than assuming I don't qualify. Worst case they say no, but if I was misclassified I might get benefits.

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That's the right approach. Washington ESD will investigate and make the determination based on the facts of your working relationship.

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Good call. Make sure you gather all your documentation - contracts, emails, anything showing how they controlled your work.

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been there done that, applied as a contractor and got denied. took forever to get an answer too. the system isn't set up for people like us

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How long did it take to get your denial? And did they explain their reasoning?

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took about 6 weeks and they just said i was a true independent contractor so no benefits. pretty standard response i guess

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Just want to mention again that claimyr really helped me get through to Washington ESD when I was dealing with my contractor classification question. Their agents were able to explain exactly what documentation I needed and what the process would look like. Saved me a lot of time and confusion.

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I'm definitely going to check that out. Still haven't been able to get through to Washington ESD on my own.

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Same here, might try that service if my adjudication drags on much longer.

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For what it's worth, I know someone who successfully got unemployment after being reclassified from contractor to employee. It took months of back and forth with Washington ESD but they eventually got approved and even received back pay.

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That gives me some hope! Do you know what kind of evidence they used to prove misclassification?

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I think it was mainly emails showing the company controlled their schedule and work methods, plus they had to attend mandatory meetings and training sessions.

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One thing to keep in mind is that even if you're reclassified as an employee, you'll still need to meet all the other unemployment eligibility requirements - like actively seeking work and being able and available for work.

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Good point. I assume I'd still need to do the job search requirements and file weekly claims?

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Exactly. All the standard Washington ESD requirements would still apply - job search activities, weekly claim filing, reporting any work or income.

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this whole thing is why i hate the gig economy. companies get all the benefits of having employees without any of the responsibilities

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yeah its pretty messed up when you think about it

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The key factors Washington ESD looks at for worker classification include: who controls how the work is performed, who provides tools and equipment, whether the work is integral to the business, and the permanency of the relationship. If multiple factors point toward employee status, you have a good chance of being reclassified.

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My client definitely controlled how the work was done and it was integral to their business. I'm feeling more optimistic about my claim now.

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Those are definitely positive factors for your case. The integral to business test is particularly important.

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Just a heads up that if you do get reclassified, your former client might owe back taxes and penalties to Washington ESD. They probably won't be happy about that.

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I hadn't thought about that. Could that cause problems for me?

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Not directly, but they might be less likely to give you a positive reference if you need one for future jobs. Just something to consider.

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I tried calling Washington ESD about contractor classification issues and could never get through. Finally used that claimyr service someone mentioned earlier. Actually got to talk to a real person who walked me through the whole process. Worth checking out if you're stuck in phone hell like I was.

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That seems to be the consensus from everyone who's tried it. I'll definitely look into claimyr if I can't get through soon.

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Update on my adjudication - finally heard back from Washington ESD after 5 weeks. They determined I was correctly classified as a contractor so no benefits for me. At least I have closure now.

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Sorry to hear that but thanks for the update. Did they explain their reasoning in detail?

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They said even though the client provided some direction, I still had significant control over how I completed the work and used my own equipment. The determining factor seemed to be that I invoiced them rather than receiving regular paychecks.

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honestly the whole unemployment system needs to be updated for the modern economy. too many people fall through the cracks

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couldn't agree more. the rules were written for a different time

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Thanks everyone for all the advice and information. I'm going to proceed with my claim and see what happens. Even if I don't qualify, at least I'll know for sure. Appreciate all the help!

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Good luck with your claim! Make sure to provide as much documentation as possible to support your case.

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Hope it works out for you. The worst they can do is say no, but you might be surprised.

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Keep us posted on how it goes! And remember claimyr is there if you need help reaching Washington ESD agents during the process.

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I went through a similar situation about 6 months ago as a graphic designer. Washington ESD's determination really comes down to the specific details of your working relationship. The non-compete agreement you mentioned is actually a strong indicator that you might have been misclassified - true independent contractors typically shouldn't be restricted from working with competitors. Also, if they provided training specific to their processes (not just general industry training), that's another factor in your favor. Document everything you can find - emails where they directed your work methods, any company policies you had to follow, whether you had set work hours, etc. The adjudication process took about 6 weeks for me, but I was ultimately approved after they determined I was functioning more like an employee than a contractor.

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