"Independent Contractors" and 1099 "Gig workers" don't mix well with
Unemployment Benefits (UI) during a Recession (second Notice)
This site had an earlier post addressing the potential crisis for so-called "independent contractors" in the event of a recession. Many of these individuals should actually be considered as employees. But the employer has sought to evade the associated costs. Those who are mis-classified will face lengthy delays in receiving UI at the worst possible time.
There is another group that might well not have access to the UI safety net. These are workers engaged in the greatly expanding "1099 gig economy". There are distinctions between the two groups, but they will both be hit hard when being unable to reasonably gain access to the historical program that has acted as an effective temporary buffer for so many. Or will at least encounter significant delays before their benefits can be processed.
The historical effectiveness of Unemployment Insurance is the result of the monies being relatively quickly disbursed to meet living costs and maintain a semblance of buying power. This will not be the case for these two groups.
~~~~~~ BTW, I will post similar warnings & notices until the bureaucracy wakes up to this situation before it becomes too late. If they never do, I guess all I can do is say "I told you so". ~~~~~~~
Birney K. Brown