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chelseasounds
Community Member

Unemployment

Hello, I have a question about unemployment. My husband lost his job a few months ago, and we have been relying on his unemployment until he gets a new job. He recently tried to make some extra money by doing a one time gig on Upwork, and now the unemployment office is telling us that he is considered an employee of Upwork and that they will no longer release unemployment to us! This is terrifying me. How do we make them understand that he is not an employee of Upwork? They also said that he could be considered an "independant contractor" which would also give then cause to withhold unemployment. Has anyone else had this problem, and if so, how did they overcome it? If my husband had known it would jeopardize his unemployment he would never have done the one time gig. This is so ridiculous.
8 REPLIES 8
jr-translation
Community Member

You should make yourselfe familiar with the applying law. Does it allow an additional income at all? That differs all over the world so you have to do some homework there. What does the law say about freelancers? Can a freelancer be unemployed or just lacking work and income?

michael_skaggs
Community Member

The unemployment office is wrong in considering him an employee of Upwork. If he goes into his profile and clicks on "Certificate of Earnings" under the "Reports" header, the document states this very clearly.

 

"This letter is to provide documentation of earnings to <Name of Person>, who is an independent contractor performing services as a freelancer for third party client companies through Upwork. Upwork provides an online workplace, where companies hire, manage, and pay freelancers through our web-based platform.

 

While Upwork is not the employer of <Name of Person> and does not control their ongoing earnings on Upwork, we can confirm that <Name of Person> has been paid the following amounts as an independent contractor in the past 12 months."

 

As far as them witholding unemployment for being an independent contractor, that's something you should probably take up with them, or talk to an attorney about. Half the job of the unemployment office seems to be denying claims, so the attorney route may be the best one.

 

But if you download that form, you will have an official statement that your husband is definitely not an employee of Upwork.

tlsanders
Community Member

The problem probably isn't that they believe he is employed by Upwork, but that they have (rightly) classified him as self-employed. In many states, the provision that allows a person on unemployment to earn a certain amount of money each week without impacting benefits does not apply to independent contracting, because an independent contractor is by definition self-employed.

 

I actually recall a case of a woman whose benefits were terminated because she earned $10 in AdWords revenue from her blog. I can't recall what state that was in, but that is how it works in some states.

isabeli
Community Member

Hello,

 

I am not advising to lie.  I mean my friend didn't lie, He told them.  He wasn't working for Upwork as a company that he didn't receive a biweekly salary that is what unemployment office understood. He was a freelancer. They do not understand this situation. Unemployment investigates and they decided to give the unemployment to him. He lives in Virginia.  By the way, a lie is not good in the USA and not in my country and other countries.  

 

Regards,

IV


@Isabel V wrote:

Hello, 

 

I do understand your situation,  he shouldn't have told them about working in Upwork they misunderstood this situation.  If the unemployment of your husband denies. He should appeal and the unemployment office will investigate and Upwork will say he is not working for them. It happens to my friend who had the similar situation than your husband.  He was denied unemployment and then he appealed and he went to a hearing and got the unemployment.  When he talked with unemployment they changed all the information. Your husband is not considered "self-employment'  because we do not make money all the time. We just made money when we are awarded a job. I hope this work for you and your husband. 


This is terrible advice. Lying to the unemployment office about income from self-employment is actually a crime, at least in the US... 

Hello,

 

I am not advising to lie.  I mean my friend didn't lie, He told them.  He wasn't working for Upwork as a company that he didn't receive a biweekly salary that is what unemployment office understood. He was a freelancer. They do not understand this situation. Unemployment investigates and they decided to give the unemployment to him. He lives in Virginia.  By the way, a lie is not good in the USA and not in my country and other countries.  

 

Regards,

IV


@Isabel V wrote:

 

I am not advising to lie.


You absolutely are.

 


I do understand your situation, he shouldn't have told them about working in Upwork.


That would be a lie. Unemployment benefits require disclosure of all sources of income. This does not vary from state to state.

 


Your husband is not considered "self-employment' because we do not make money all the time. We just made money when we are awarded a job.


It doesn't matter if you make money "all the time." If you are actively seeking freelance work, and making any money at all, you are self-employed. That's the definition of self-employment. This also does not vary from state to state.

Jess, 

 You aren't absolute rare... Feel proud of yourself and thank you for your comments.

Best wishes.

Isabel.

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