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Quitting agency job after contract ends - ESD benefits eligibility?

I'm working as a contractor through a staffing agency that pays my salary. My current 3-month client contract is ending soon, and they've already confirmed it won't be extended. After this contract ends, I want to leave the agency completely (they take a huge cut of my earnings). When between clients, the agency only pays $1400/month minimum salary while searching for new placements. I'd rather find a direct-hire position myself, but I'm concerned about the job search timeline. If I voluntarily quit the agency AFTER my client contract ends but WHILE they're offering me the minimum salary, would I qualify for unemployment benefits during my job search? I've been with this agency for 2.5 years total. Also, I'm trying to avoid burning bridges. If my independent job search takes longer than expected (say 4+ months), I might need to go back to them. Any advice on handling this professionally while maximizing my ESD benefits eligibility?

Austin Leonard

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This is tricky because voluntarily quitting usually disqualifies you from benefits... BUT the significant reduction in pay (from your regular contractor salary to the $1400/month minimum) could potentially qualify as "good cause" to quit. ESD considers substantial pay reductions as possible good cause. Have you compared what percentage drop that $1400 represents from your normal pay?

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Sophie Duck

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Thanks for responding! It's about a 75% reduction from my normal pay. Would that be considered substantial enough? I'm worried because technically this minimum pay arrangement was part of my original agreement with the agency, even though I've never actually been on it before (they've always found me placements quickly).

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Anita George

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im in the exact same situation right now!! my contract ended last month and my agency keeps sending me to interviews for jobs that pay way less than what i had before. i didnt quit and am collecting partial unemployment while on their minimum "bench pay" which is like $1200/month. they said i HAVE to go to these interviews or they'll terminate me which would mean full unemployment. its so frustrating!!!

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Sophie Duck

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That's really helpful to know! So you're getting partial unemployment while still technically employed with them? I didn't realize that was possible. Are they making it difficult for you or was ESD pretty understanding about the situation?

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Anita George

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yeah its called underemployment, where u report the little income u get each week and still get partial benefits. but be careful, my agency got mad when they found out i was doing this. they basically told me they expect "full commitment" to finding a new contract. so now im just waiting for them to fire me lol

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Abigail Spencer

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ESD specialist here. This situation revolves around what's called a "substantial reduction in pay," which can qualify as good cause to voluntarily leave employment. A 75% reduction would generally meet this threshold. However, there's a complication: if this reduced "bench pay" was part of your original employment agreement, ESD might consider this an agreed-upon condition of employment rather than a new reduction. You would need to prove that remaining at this reduced pay represents a significant hardship. Your best approach would be: 1. Document the end of your contract assignment 2. File for partial unemployment while on reduced pay 3. Keep detailed records of your job search efforts (minimum 3 job search activities per week) 4. If you do decide to quit, be prepared to explain why the reduced income creates a significant hardship I'd also recommend calling ESD directly to discuss your specific situation before making any decisions, as these cases are determined individually.

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Sophie Duck

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Thank you for such a detailed explanation! I never thought about filing for partial unemployment while still employed on the reduced pay - that seems like a smart first step. Do you know if accepting the minimum pay temporarily would hurt my case if I decide to quit later?

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Logan Chiang

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Just wanted to add that I went through something similar with a different agency last year. I was receiving the "bench pay" for about 6 weeks while they looked for new contracts. I applied for partial unemployment during this time, and ESD approved it without much hassle. The key was reporting my reduced income accurately each week on my claims. I also made sure to meet all the job search requirements. Eventually I did find a direct-hire position on my own, and the agency actually wished me well. They understand this is business! One tip: Try calling ESD directly to explain your situation BEFORE you make any decisions. Getting through to them on the phone is nearly impossible though - I wasted days trying. I eventually used a service called Claimyr (claimyr.com) that got me connected to an actual ESD agent in under 30 minutes. They have a video demo here: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It was worth it to get clear answers about my specific situation.

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Sophie Duck

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That's really helpful to know about your experience! I'll definitely try to reach ESD before making any decisions. And thanks for the tip about Claimyr - I've tried calling ESD before for an unrelated question and couldn't get through, so that might save me a lot of frustration!

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Isla Fischer

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Be careful here. I worked for an agency that did the EXACT same thing (probably the same one tbh). When I applied for partial unemployment while on their minimum "bench pay," they contested it AND reported to ESD that I wasn't meeting their job search requirements (even though I was looking for jobs, just not the ones they wanted me to take). Got my benefits denied and had to appeal. Such a headache.

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Logan Chiang

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Ugh, that sounds awful! Did you end up winning your appeal? This is why I suggest getting clear guidance from ESD first about how to handle the specific situation. Agencies can definitely make things difficult if they think you're not being "loyal."

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Isla Fischer

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YES, eventually won after a stressful hearing where I had to prove I was actually looking for work. But it took almost 3 months to get resolved and the backpay. The agency tried to argue that by signing up with them, I had agreed to periods of low pay between contracts. Judge ruled that a 70%+ reduction in pay still qualified as good cause regardless of the initial agreement. But different judges might rule differently.

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Miles Hammonds

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i don't think u should quit. if ur contract ends and they don't have another placement for u RIGHT AWAY, that's technically a layoff isn't it?? then u can get full benefits no questions asked. that's what happened to my boyfriend. just don't use the word "quit" at all when talking to ESD

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Abigail Spencer

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I need to clarify something important here: This is incorrect advice that could potentially lead to fraud issues. If the agency is offering continued employment at the minimum "bench pay" rate, and you're still employed, you must report this accurately to ESD. Misrepresenting your employment status is fraud and can result in having to repay benefits plus penalties. The correct approach is to report the reduced income and let ESD determine partial benefit eligibility based on the actual circumstances.

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Ruby Blake

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THE AGENCIES ARE ALL SCAMS!!!! They take 40-60% of what clients pay for your work and then try to keep you trapped with these BS "bench pay" schemes. I went through THREE AGENCIES before finding a direct-hire position. They'll fight your unemployment claim no matter what because their business model depends on desperate contractors. The whole system is rigged against workers!!

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Sophie Duck

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I definitely feel frustrated about how much they take from my contract rate! Though I've heard some agencies are better than others. Did you manage to get any unemployment benefits during your transitions between agencies?

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Ruby Blake

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I did get benefits but ONLY after they actually terminated me for "not being a team player" (aka refusing terrible contracts). Then there was no question about eligibility. But it took 6 WEEKS of adjudication because they initially tried to claim I was fired for misconduct. Have documentation for EVERYTHING.

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Austin Leonard

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Based on everything shared here, it seems like your best options are: 1. After your contract ends, accept the bench pay temporarily while applying for partial unemployment benefits AND searching for jobs independently 2. Document everything - the contract end date, communications about assignments, your job search efforts 3. If you do decide to quit later, focus on the substantial pay reduction as your "good cause" reason 4. Keep the relationship professional with the agency - don't mention unemployment to them if possible This approach gives you some income while job searching and potentially preserves the relationship if you need to go back later.

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Sophie Duck

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Thank you for summarizing! This approach makes a lot of sense. I'll start by accepting the bench pay after my contract ends, apply for partial unemployment, and continue my job search. If things aren't working out after a month or two, I can reevaluate whether to formally quit. Really appreciate everyone's insights!

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