Can You Reopen an Unemployment Claim After Contract Work?
Contract work (also called independent contract work) is a self-employment situation where you provide services to individuals and businesses on an individual contract or project basis. Although contract work isn’t covered under unemployment insurance, performing it can disqualify you from a claim. After the work is over, you can reopen your claim as long as you follow the regulations of your state’s labor office.
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Contract Work Ending a Claim
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Your unemployment benefit determination is based on the idea that you aren’t receiving any income at all. If you start receiving pay from contract work, it’s possible to continue receiving payments but you must earn less than your weekly unemployment benefits payments. If you begin to earn more than that, your claim ends until you’re unemployed once again. At that point, you can reopen your claim with your state unemployment agency.
Reopening Process
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To reopen a claim, you must meet the eligibility requirements for your state, which includes not earning significant income from contract work. You go to your state unemployment agency’s website or call the claims line to start a new application. Use your old login information to access the system. Answer the questions about your unemployment to the best of your knowledge, and submit the application for review. Your state will send you a determination that notifies you of its decision on your application.
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Requalifying Concerns
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An important concern is whether your state has certain requirements for reopening your claim. Claimants hear about requalifying wages or requalifying work hours and get worried. However, these requalifying requirements are not for reopening claims but for refiling claims after a benefit year is over. The only requirement for reopening your claim is that any employment you took on during the interim has a qualifying job separation. Any job separation must be through no fault of your own. Because contract work is a type of self-employment, the job separation doesn’t qualify.
Compensation Concerns
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If the state approves your claim after your contract work ends, your compensation stays the same. Your weekly benefit amount will be the same one you were collecting before you went off unemployment. Your maximum benefit amount, the most you can collect per year, is also the same, which brings some concerns to your reopened claim. You have only a certain amount left in your balance, and when it’s gone your claim is over. So if you had a maximum benefit amount of $1,200 and used $800 before your claim closed, you will have only $400 during your reopened claim.
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