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LawTalk, Attorney
Category: California Employment Law
Satisfied Customers: 37855
Experience:  I have 30 years of experience in the practice of law, including employment law and discrimination law.
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Benefits Eligibility while having a side job/business

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Hello. I have just been recently laid off from my full time job due to the company closing down effective Dec 31st 2012. I have been working full time for the company since February of 2010. During sometime last year in May 2011, a partner and I started a business selling online. We do this on evenings and weekends and never affected my full time job. I worked my full time job until last month since 2010. I filed for unemployment insurance with EDD. There was a question on the form that states something like, "do you own or will own a business...etc." I answered truthfully.  However, I need a full time job, I am looking for full time job and willing to accept one. Last week I received a letter of "notificiation of unemployment insurance benefits eligibility interview."   Will my side job/business affect the approval/disapproval of my claim? Thank you!

Good morning Marva Mae,

I'm Doug, and I'm very sorry to hear of your situation.

While having a side job will not mean that you are ineligible for unemployment benefits based on having lost your full time position, the income you earn working part time for yourself must be reported to EDD every time you re certify and depending on the amount you earned that week, your benefits may decrease.

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I wish you the best in 2013,


Customer: replied 4 years ago.

Hi Doug,


Thanks for the quick reply. So CA is one of several states that will deduct your weekly earnings if you report income from a side job/business? Even if I had worked full time for 3 years and earned enough income in the base period? Thank you for the help.

Good afternoon,

Actually Marva Mae, all states have some sort of a set-off if you earn income from self employment at the same time you are receiving unemployment benefits. Even though you worked full time in your "day job" and earned more than enough in your base period to qualify for unemployment, there is still an obligation to report your self employment income. And there will be an offset from your benefits because of that self employment income---I'm sorry.

You may reply back to me again, using the Reply to Expert link, if you have additional questions.

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I wish you the best in 2013,

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