Can Contract Workers Get Unemployment in Texas?

Can Contract Workers Get Unemployment in Texas?

In Texas, many contract workers are uncertain about their eligibility for unemployment benefits. Contract workers, also known as independent contractors, are individuals who work on a project basis for multiple clients without being considered employees. Due to their unique employment status, the question arises – can contract workers in Texas receive unemployment benefits?

According to the Texas Workforce Commission (TWC), contract workers are generally not eligible for regular unemployment benefits, as they are not considered employees. Unemployment benefits are typically reserved for individuals who are considered employees and have lost their job through no fault of their own.

However, there are certain circumstances where contract workers in Texas may be eligible for unemployment benefits. The TWC provides an alternative program called the Pandemic Unemployment Assistance (PUA) that extends benefits to self-employed individuals, including contract workers, who have been affected by the COVID-19 pandemic.

To determine eligibility for PUA benefits, contract workers must meet specific criteria set by the TWC. These criteria may include demonstrating that their work has been significantly impacted by the pandemic, such as experiencing a substantial reduction in income or being unable to find new projects.

It’s important for contract workers in Texas to understand that PUA benefits are temporary and have an expiration date. As the pandemic situation improves and the economy recovers, the availability of PUA benefits may change.

If you are a contract worker in Texas and unsure about your eligibility for unemployment benefits, it is recommended to contact the TWC or consult with an employment attorney for expert guidance.

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