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Keith Davidson

ESD benefits when in limbo with staffing agency but not officially laid off?

I'm stuck in this weird situation with a staffing agency and wondering if I can collect unemployment. I've been with them for 4 years, and my current client contract just ended. The agency is supposedly looking for another placement for me, but they're not paying me anything while I wait. Here's the tricky part - they're saying I can only receive a minimum base pay between assignments if I agree to relocate (which I absolutely can't do because of my elderly parents I'm caring for). There was something in my original contract about possibly relocating for assignments, but when I started in 2021, everything was remote due to COVID so it wasn't an issue. Now they're using that clause against me. Can I qualify for unemployment when I'm technically still employed but not being paid? Does the agency have the right to withhold pay completely while still keeping me on their books? I'm getting desperate as this has already been 3 weeks with no income.

You can absolutely apply for unemployment in this situation. What you're describing is called 'lack of work' which is a qualifying reason for UI benefits. The agency isn't providing you with work and isn't paying you - that's essentially a layoff regardless of what they're calling it. Make sure when you file that you clearly explain the situation exactly as you did here. They may try to fight it by saying you refused suitable work (the relocation), but caring for family members is often considered good cause for refusing to relocate. Document everything, especially any communications about your unwillingness/inability to relocate due to family care responsibilities.

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Thank you! That's really helpful. When I file, should I list my separation reason as laid off, quit, or something else? And will ESD contact the agency to verify everything?

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im in almost SAME boat last year!! agency tried this on me too! they siad i had to move to portland or no pay but keep me 'on the books' as they call it. I filed for UI and got it but had to appeal first bcuz they said i refused work. the judge sided w/ me because they cant force u to MOVE for a job thats not reasonable!! make sure u save ALL emails where they say this stuff!!!

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Wow, that's so good to know! Did your agency fight your unemployment claim? How long did the appeal process take?

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ya they fought it HARD. took like 5 weeks for appeal hearing then another 2 wks for decision. but i won! make sure u tell UI exactly why u cant relocate (elderly parents) cuz thats important. they cant expect u to just abandon family!

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These agencies are ALL THE SAME. They pull this crap all the time knowing most people won't fight back. I had one try to say I was "on call" for 4 months without a single hour of work or pay! ESD approved me but I did have to explain the situation like 5 times.

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This is a very common issue with staffing agencies. The key legal concept is whether there is a "continuing employment relationship with substantial earnings." In your case, there are NO earnings, so you clearly qualify for UI. When you file, list your reason as "lack of work" or "position ended." Be prepared that the agency may contest your claim arguing you refused suitable work. However, the relocation requirement is likely unreasonable, especially with family care obligations. Make sure to document: 1. That your contract ended (date specific) 2. That they're not paying you anything during this period 3. Any communications about your inability to relocate 4. The timeframe of how long it's been since you had actual paid work WA state is generally employee-friendly in these situations.

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Another important thing: when you file, you need to report any job refusals. But refusing work that requires relocation when you have family care responsibilities should qualify as "good cause" for refusal. Document why the relocation isn't feasible for you specifically.

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i had this happen too!!! they said i was 'employed' for tax purposes but no $$$$ for me! super sketch. ESD took forever to process my claim tho cuz the agency kept saying i was still their employee. so annoying!!

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How long did it take for your claim to get processed? I'm worried about being stuck without income for months.

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took like 8 weeks before i got my first payment cuz it got stuck in adjudication. they kept asking for more info. was super stressful

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That's really concerning... I can't go 8 weeks without income. Did you try calling ESD to speed things up?

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When I was in adjudication for a similar issue, I couldn't get through to ESD for weeks. I finally used Claimyr (claimyr.com) and got connected to an ESD agent in about 15 minutes. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. The agent was able to review my case and tell me exactly what documentation they needed. Saved me weeks of waiting and wondering if I'd done everything right.

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Thanks for the tip! I've been trying to call ESD all morning and keep getting disconnected. I'll check this out if I can't get through soon.

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These staffing agencies are PREDATORY!!! They want to have it both ways - not pay you but keep you from getting benefits. File immediately and let them try to fight it. The burden of proof will be on THEM to show you have "reasonable assurance" of continued employment with "substantial earnings." No pay = no substantial earnings = you qualify for UI. Period.

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EXACTLY!! they want free labor pool they can tap whenever they want without paying a dime to keep u available. its total BS and ESD knows it!

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My cousin works for ESD (not speaking officially obvs) and she says they see this ALL THE TIME with staffing agencies. Make sure you're super clear about the facts: contract ended, no current assignment, no current pay, and can't relocate due to family care obligations. Should be pretty straightforward case for approval.

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That's reassuring! I'll make sure to be very clear about all those details when I file. Thanks!

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When you file, make sure to address these specific points: 1. Your last day of actual paid work 2. That the agency is not providing you with any income currently 3. That they are conditioning future income on relocation 4. Your specific reason why relocation isn't possible (elder care) Also, start your job search immediately and document all activities. You'll need to report 3 job search activities per week once you start claiming. Even if your claim goes into adjudication, keep filing weekly and doing your job search activities.

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yes!!! keep doing the weekly claims even if u dont hear anything back right away!! my friend didnt do this and lost like 3 weeks of benefits he couldve gotten backpaid!!

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Based on what you've shared and similar cases, you're very likely eligible. The key test is whether you're receiving substantial pay - and zero pay clearly fails that test. File your claim, clearly document why relocation isn't possible (family care is a recognized good cause), and be prepared for possibly needing to provide additional information during adjudication. The agency might try to argue you refused suitable work, but that argument typically fails when relocation is required and you have family obligations. Good luck!

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Thank you so much everyone! I'm going to file my claim today and make sure to document everything exactly as you've all suggested. I feel much more confident about my situation now!

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