Can an Individual Draw Unemployment if Temporarily Working?
When jobs are scarce and companies conduct widespread layoffs, many people collect unemployment benefits. In a down economy, it can take much longer to find a new permanent, full-time job, and some workers are open to any type of opportunity in an attempt to earn income. Some people consider working temporary positions to maintain valuable work skill sets, as well as to take advantage of potential temporary-to-permanent opportunities. While the rules are different from state to state, most people will be able to take temporary positions that will not disqualify them from unemployment. However, a temporary job will affect their current unemployment situations.
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Reporting Temporary Employment
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No matter what state you live in, if you accept a temporary position, you must report your earnings when you report your biweekly or monthly unemployment status. The unemployment update typically asks the unemployed worker how many applications he submitted, how many interviews were conducted and how many job offers were accepted or turned down. Workers must report any temporary job acceptances during this update, as well.
How Temp Work Affects Unemployment Payments
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While each state is different, most states issue an unemployment statement of benefits when the person is first approved for unemployment benefits. This statement generally includes the person’s weekly benefit amount, as well as his weekly earnings allowance. These numbers are based on the salary information from the last permanent job, or the job the person was laid off from. For example, someone who earned $45,000 per year before he was laid off, may be allotted $1,200 a month in unemployment payments. If he earns $500 a month at a temporary position, his unemployment check amount typically will be the difference between his earnings and his allotted amount. Therefore, in this example, his monthly unemployment payment would be $700. If he earns $1,000 at a temporary position, his unemployment check may only be $200. Different states have different methods for calculating unemployment amounts when temporary employment is involved.
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Temporary Assignment Endings
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The way your temporary assignment ends may affect your unemployment benefits. For example, if you were laid off from your last permanent position, you probably qualified for unemployment due to the termination reason. However, if you take a temp position, and you walk off, get fired for breaking a rule, or quit voluntarily, you could lose all your unemployment benefits. If you accept a temp position, you must do a satisfactory job and continue it until the end of the assignment. Also, if you turn down a second temporary assignment due to low pay or other reasons, you could lose your unemployment benefits as well.
Other Considerations
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After your temporary assignment ends, the job agency typically has three days to offer you another suitable position before you qualify for your full unemployment benefits again. You also may want to reconsider temporary work if your unemployment benefits are significantly lower that what you earned at a full-time permanent job. Until you find a new permanent job, your monthly income will remain on the unemployment earnings scale, regardless of whether you work a temp job or spend all day sending out resumes.
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