Quitting Contract Work

• If you accept a contract position and then quit, you stand a strong chance of losing your unemployment benefits. Contract workers are treated the same as permanent employees in regard to quitting a job. Employees or temporary workers who voluntarily leave their jobs are usually ineligible for unemployment benefits. However, exceptions exist if the worker left the position due to extreme circumstances, such as workplace harassment.
  
  

Eligibility Requirements for Contract Workers

• Contractors are required to check in with their last temporary agency for available work. Most temporary agencies provide workers with employee handbooks that specify their specific requirements regarding contacting the agency for available work. Workers can lose their eligibility for benefits if they refuse to accept suitable work through the agency. Temporary workers must still meet other unemployment eligibility requirements, such as minimum earnings, working a minimum number of hours and leaving a position through no fault of their own.
  
  

Refusing Suitable Work

• Most state unemployment offices assume that contract workers left a job through no fault of their own. According to the Legal Aid Society, if the contract worker continues to receive unemployment benefits after quitting a job, he may be penalized. A company or temporary agency has the right to contact their state’s unemployment office to inform them that a worker refused suitable contract work. In most cases, the unemployment office contacts the worker to discuss the reasons behind the refusal of work. The representative conducting the interview asks specific questions about the assignment, such as pay, location and duties. If the representative finds that you unjustly refused the work or quit the job, you can lose your benefits.
  
  

Independent Contractors

• Independent contractors operate under different unemployment rules as contract workers working for temporary agencies or temporarily for companies that are not temporary agencies. Independent contractors typically set their own hours and provide their own tools and supplies. However, some employers misclassify temporary workers as independent contractors. The state unemployment office determines whether a worker is a temporary worker or independent contractor when a benefit claim is filed. The temporary agency or company pays unemployment taxes, which allows employees working for companies to file for unemployment benefits. Independent contractors are responsible for paying their own taxes and usually do not pay unemployment taxes. Therefore, independent contractors are usually not eligible to receive unemployment benefits.