Can I collect unemployment if my employer changes my work status from a W-2 employee to a 1099 contractor?

UPDATED: Aug 4, 2011

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Can I collect unemployment if my employer changes my work status from a W-2 employee to a 1099 contractor?

I was given a 3 day notice that I would no longer be a W-2 employee and that I would be a 1099 contractor. They took away my health benefits, work support, and office space. I was told to work from home. The company states I quit voluntarily.

Asked on August 4, 2011 Arizona


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It would be advisable to speak with an employment law attorney.  As an independent contractor (1099 contractor), the company could claim that you are not an employee in order to try to deny you unemployment compensation. 

Another issue is that even as an employee, if the company claims you voluntarily quit, that would be a basis for denial of unemployment compensation.  You will need to refute the allegation of voluntary quitting in order to receive unemployment compensation for the time you worked there.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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