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Monster member jdldesign posts: I will be laid off from my current job soon. During our last discussion, my employer acknowledged that there were certain tasks that none of the other current staff could perform and that he would consider giving me project-based freelance work after I’m laid off. I have some questions regarding freelance work with respect to collecting unemployment:
- Could my employer petition for denial of benefits if I refuse the freelance work? I’m hoping that refusing doesn’t constitute rejecting the offer of paid work. I don’t want to be forced to take on work that may not pay enough or sustain my cost of living. I also don’t see this work being offered regularly. I’d much rather collect unemployment and know I’m getting a regular check versus getting $1,000 (or less, I don’t know what kind of a rate he would pay) of billable work in a month and then not get any additional work for a month or two.
- Could I freelance and still collect unemployment? I’m an industrial designer with a graphics design background, so it’s likely I will pursue freelancing, but I’m not confident that it will be lucrative enough to live off of. For example, I could make $1,000 from one project, and then not see any other work for three to four weeks. I’ve gathered that in some states (I’m in Illinois), you’re eligible for X amount of unemployment based on your hours worked and pay rate in the previous work period. You could take the maximum amount of benefits for six months and run out of funds. Alternatively, you could extend your benefit by working part-time. So, my assumption is that if I started unemployment but worked freelance sporadically, the state would adjust my weekly benefit checks.
I’ll be talking to the Unemployment Office once I get laid off. At this point, I’m hoping to gather some advice so I’m not asking things I shouldn’t.
The Negotiation Expert responds: I’d be talking to the Unemployment Office people right now if I were you, instead of waiting until I was laid off.
Secondly, I’d begin my job search right now, instead of waiting, keeping in mind that it’s always easier to find a job when you have one. Waiting until you’ve been laid off takes away one of your most valuable negotiating tools. It’s possible that you’ll be able to have another job lined up before you’re laid off, in which case you can give your notice, resign and take the other job.
Check with the unemployment people about what your status would be if you were doing freelance work. I’d also have another talk with whoever told you there might be freelance work coming to see if it’s possible to discuss a consulting contract, which would provide you with a more predictable income stream. The point at this moment is to begin preparing for your next job right now, not two months from now -- that would just be time wasted.
