For a long time, self-employed workers, freelancers, and independent contractors have been ineligible for unemployment insurance when they lose their income. This is, however, likely to change thanks to the Coronavirus pandemic. Several programs have been put in place to support independent contractors, gig economy workers, and small business owners whose finances have taken a hit due to the pandemic.
Under the Coronavirus Aid, Relief, and Economic Security Act or CARES Act, states can extend unemployment benefits to independent contractors and other groups who initially didn’t qualify for such benefits. The federal and state governments have improved and enhanced the requirements for sick leave and unemployment benefits, with legislation that impacts self-employed and independent contractors.
According to Michele Evermore, senior research and policy analyst for the National Employment Law Project, the enhanced unemployment benefits are based on disaster unemployment assistance. There are several programs under the CARES Act among them:
Unemployed workers may qualify or unemployment benefits depending on how their state is implementing the CARE Act and their circumstances. Each state has different requirements for eligibility. When filing a claim form, the following detailed are required: