< Back to Washington Unemployment

Early contract termination - ESD eligibility with split base year between two employers?

Just found out my contract position is getting axed on Sept 15th due to 'budget restructuring' (whatever that means). I'm employed as a W2 contractor through a staffing agency, not as a 1099 independent contractor. Been at this healthcare admin job since March 2025 working 40 hrs/week. Two big questions keeping me up at night: 1. Since I'm being let go early from a contract position, will ESD consider me eligible for unemployment? The termination letter specifically says it's due to position elimination, not performance. 2. My work history is split between two companies. Before this job, I worked full-time at a marketing firm for almost 3 years, but there was a 10-day gap between jobs. Will having my base year hours divided between these two employers mess up my benefit calculation? This is my first time dealing with unemployment and I'm pretty stressed about making rent without some temporary support. Anyone been through something similar with contract work?

You should definitely qualify for UI benefits. When a contract ends early due to budget/business needs (and not misconduct), you're eligible as long as you have enough hours in your base year. Since you worked full-time at both jobs, your total hours should easily exceed the minimum requirement (680+ hours). The split between employers doesn't matter for eligibility - ESD combines all covered employment during your base year. What matters is your total earnings during that period, which determines your weekly benefit amount. The 10-day gap between jobs is irrelevant for qualification purposes. Just be sure to accurately report your employment history when you file. One tip: file your claim the Sunday AFTER your last day of work. Don't wait too long as benefits aren't retroactive beyond the week you file.

0 coins

Sofia Torres

•

Thank you! That's really helpful to know about the combined hours. Do you know how they calculate which quarters they use for the base year? Is it based on when I file or my last day of work?

0 coins

Ava Martinez

•

i went thru this last year!!!! contract jobs TOTALLY qualify for unemployment!! the important thing is ur a w2 employee, doesnt matter if its contract or whatever. my company tried telling me i wasnt eligible cuz i was a "temp" but thats BS!!! as long as ur not fired for doing something bad ur good

0 coins

Sofia Torres

•

That's really reassuring to hear! My employer has been weirdly vague about the unemployment eligibility which made me nervous. Did you have any issues with the application process or was it pretty straightforward once you filed?

0 coins

Miguel Ramos

•

To answer your question about the base year - it's the first 4 of the last 5 completed calendar quarters before you file your claim. So if you file in September 2025, your base year would be April 1, 2024 through March 31, 2025. However, if your earnings during that period don't qualify you for a claim (which seems unlikely in your case), ESD will automatically check if you qualify using an "alternate base year" which is the last 4 completed quarters. Having two employers during this period just means ESD will request wage information from both companies. They'll add up all your covered employment to determine your benefit amount.

0 coins

Sofia Torres

•

This is exactly what I needed to know, thank you! Based on those dates, I should have both employers included in my base year which should help with the benefit calculation.

0 coins

QuantumQuasar

•

I don't think contract jobs qualify? My brother-in-law had a similar situation and got denied. Something about how contract work is temporary by nature and you agree to the end date when you start... but I could be thinking of something different.

0 coins

You're thinking of independent contractors (1099 workers), who generally don't qualify for regular unemployment. The OP is a W2 employee through a staffing agency, which is completely different. They're an employee whose job is ending involuntarily due to budget cuts before the expected contract end date, which absolutely qualifies for UI benefits in Washington state.

0 coins

Zainab Omar

•

Went through almost exactly this in January! My contract was supposed to go through June but they terminated early due to "changing project scope" or whatever corporate-speak they used. I did qualify for unemployment, but getting through to ESD when I had questions was TORTURE. Spent literally hours on hold multiple days in a row and kept getting disconnected. Finally used a service called Claimyr (claimyr.com) that held my place in line and called me back when an agent was available. Saved me so much frustration! They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 About your benefits - they'll calculate using wages from both employers. My claim had three different employers in the base year and it wasn't an issue at all. The ESD system pulls all your wage data automatically.

0 coins

Claimyr saved me too!! I was losing my mind trying to get someone on the phone about my adjudication issue. Started at 7:55am calling constantly for THREE DAYS before I found out about them. Got through to ESD same day. Totally worth it!

0 coins

Yara Sayegh

•

Make sure you're meeting the job search requirements once you start claiming!!! They're super strict about this now - you need to document 3 job search activities EVERY WEEK and be ready to submit them if they audit you. I got caught on this and had to pay back two weeks of benefits because I didn't realize the requirements had changed. Don't make my mistake!!!

0 coins

Sofia Torres

•

Thanks for the warning - I had no idea about the 3 activities per week requirement. Do things like updating your resume or attending WorkSource workshops count?

0 coins

Yara Sayegh

•

Yes, WorkSource workshops definitely count! Resume updates only count if you're working with a career counselor though. Most of your activities should be actual job applications. Keep really detailed records of everything - company name, position, contact info, date, method of application, etc. They're not messing around with audits these days.

0 coins

I process UI claims for a major employer (not ESD) and can confirm W2 contract workers definitely qualify when laid off before the end date. The system is actually designed with situations like yours in mind. One important thing - be extra careful how you answer the separation reason question. Select "laid off due to lack of work" NOT "end of contract/assignment." The second option can trigger unnecessary investigation that delays your claim. And don't select "quit" even though it might seem like the contract is ending - this was a termination initiated by the employer. Also, if they put you on any kind of standby or suggest they might rehire you soon, be very careful. If you indicate potential recall on your application, it changes your job search requirements and can complicate things. Based on what you described, a clean layoff is what happened.

0 coins

Sofia Torres

•

Wow, this is super helpful inside information! I definitely would have been confused about which separation reason to select. They did mention vaguely that "if business needs change we may reach out in the future" - does that count as standby or is that just standard language they use?

0 coins

That's just standard non-committal language companies use to keep options open. Standby status requires a specific formal request from the employer with an expected return date within 8 weeks. What you described is definitely not standby - just proceed with a regular claim as laid off due to lack of work.

0 coins

TaxRefund AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
7,242 users helped today