The test was fairly easy with the exception of the question about overtime for piecework. If I had employees, they’d be happy because I would have overpaid them $70!

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I spoke to them after I took the test about taking that question off, or correcting it. There was no correct answer provided. Not only were there grammatical errors on this test, but the Q about minimum wage was old (so they said it wouldn’t count) and the question you wrote about didn’t even provide the correct answer. I was a little insulted that I’m expected to fly to another state and pay $750 to take a test that a monkey must have put together.

I’ve worked as a contract software developer since 1992. Most of the time, I’ve been able to collect unemployment because I usually work through an agency. I end up being an employee of the agency, working on a W-2 basis, so they withhold taxes and pay unemployment insurance just like a regular employer. This is how most employers get around the issues with hiring contractors. The IRS is very particular with their 20-point test as to what an independent contractor is, so most companies just avoid the hassles and pay the premium the agencies charge. Most agencies these days even offer some level of benefits. My last one had full health and disability insurance, FSAs, and a 401K plan.

Once a contract is done, I’m able to collect unemployment benefits. “Job ended” is what I’ve always used for the reason and I’ve always been approved. I’ve been told that we have the highest unemployment benefits (and probably the highest unemployment insurance costs in the US here in MA. When I collected last year, I was getting the maximum rate of $575 per week.

I have also worked as an independent contractor, through my own company, on a 1099 basis. I’m doing that now. I’m not sure if you’re allowed to pay unemployment insurance on yourself in that case. Until now, I never did it often enough to bother to look into it.

It seems like CA might be a lot more particular about how you employ people. I wonder if they allow the contract agency model? That would be a great way to get temporary help during busy times.

Never having been an employer, I don’t know exactly what the motivation is to NOT have the state pay out unemployment benefits on your behalf, but I’ve observed this is the case; when an ex-employee files an appeal with the EDD, the employers make an effort to fight to have the firing be deemed “for cause”. A quick scan of CA gov’t websites did not bring quick enlightenment. In general, the state wants to keep people employed. I assume there is some kind of negative consequence for the employer, but I’m unclear on the details.

Disclaimer: Aside from being RIFfed numerous times, I am not an expert on CA employment laws. As always, check with the state of CA for pertinent details. I assume other states have their own regulations re: unemployment.

Claire-Marie

I realize that now I am considered a “manufacturer”, but the $750 fee is hard to take simply because because in reality I am a small retailer. Hopefully it will be worth it in the end.

Where I am (Canada) the employee pays Employment Insurance premiums to the federal government which are deducted at source from the employee’s paycheque. When the employee is fired for cause, it’s the same thing as in California: no benefits. When the employee is simply laid off for lack of work, the employee gets benefits from the federal employment insurance program. The relationship with the employer no longer exists.