A couple of weeks ago the LA Times ran a guide for unemployment benefits in its business section (which is available here). To offer such guidance is a great idea. Every news publication that wants to be useful to its readership should be so helpful in these days of soaring unemployment.
Unfortunately, the piece was written by someone who obviously has not been unemployed or filed for benefits at any point in recent years, and clearly was written on the basis of interviewing people at the state office, who simply aren't going to reveal some of the tricky aspects of unemployment.
So it's a bit like getting dating advice from a Catholic priest. Just misses the boat sometimes.
A big example: the LA Times guide doesn't touch on how to file for benefits if you were previously employed full-time, and now are working part-time, on a free-lance basis.
This is not a small number of people, I dare say, especially as we are being told on a nearly weekly basis how businesses are shedding workers so as not to have to carry their benefits. This is exactly what happened to yours truly. Laid off from a full-time job with benefits with a big media corporation and hired on a part-time basis to work a job with no benefits for another big media corporation.
So: How does such a person working part-time continue to receive benefits from unemployment?
Simple. First, don't try to game the state of California. You paid into the system when you were working full-time, you have a right to a certain level of support, depending on your past income, for a certain amount of time, which can be considerable. (A year or even more, if Congress approves.) Don't cheat. You don't need to, and if you do, they will figure it out eventually and punish you. Who wants that?
Second, keep in mind that the system is divided into two completely separate parts. Part one is the computer system. If you jump through all the hoops, according to the automated mail/computer/state records system, you will get your benefits with remarkable speed and accuracy. But make the slightest miscalculation or confuse the automated system in any way, and your file will be kicked up to the human level, which can correct mistakes, but is also completely overwhelmed and slow as mud.
Okay, so how does this relate to a free-lancer still eligible for benefits?
Here's the trick, as related to me over the weekend from a very nice lady at EDD. If you are a free-lancer, and you earn some money, when you earn that money, file the number accurately on the claims form and keep a record of the check, but DO NOT PUT DOWN THE NAME OF YOUR EMPLOYER OR THEIR ADDRESS. SIMPLY WRITE "SELF" or "SELF-EMPLOYED" and leave it at that.
Why? Because if you list your employer, the system is programmed to think you are working a conventional full-time job. They will then have to notify the human side of EDD, who will have to talk first to you the beneficiary. That will take weeks — three weeks w/o benefits in my case. In fact, the system is delighted to hear that you the beneficiary are working, even part-time, and only wants to be certain that your part-time free-lance work does not interfere with your search for a full-time job comparable to your previous work…even if that job is likely gone for good.
Got that? Email me if you have any questions. As the EDD lady said about this little trick for part-timers who once worked full-time…"there's no way you could have known that."
Believe me, it's not in their guidebook…nor in the newspaper.