This story is free to read because readers choose to support LAist. If you find value in independent local reporting, make a donation to power our newsroom today.
Freelancers Are Still Struggling With California's Unemployment System
A pedestrian in a facemask walks in Hollywood, California on April 23. (Frederic J. Brown/AFP via Getty Images)
Any trip to an L.A. coffee shop (in ye olden times, i.e., two months ago) is a quick reveal that this city is full of freelancers – screenwriters, producers, actors, journalists, hair and makeup stylists, photographers and pretty much everyone who works on film sets ... the list goes on.
That's why so many freelancers and self-employed Angelenos were relieved when California finally launched an unemployment program for people who file their taxes with 1099s, rather than W2s (for payroll workers).
But now that people are getting through the not-very-smooth application process, they've noticed a catch: If you're a freelancer who gets some, even a little, income from a W2, you won't get paid the full share of unemployment that would normally correspond to your income.
That's what happened to Elizabeth Windust, a freelance makeup artist.
Windust earns the vast majority of her income as a 1099 independent contractor. Based on that income alone, she would have likely qualified for the maximum of $450 per week in benefits, plus the extra $600 per week now going to all unemployment recipients through the end of July.
However, because a handful of her makeup jobs paid her as a W2 employee, she is now ineligible for the new program to help self-employed workers. Her benefits are instead calculated using only her W2 income.
"That's a tiny fraction of my total income," she said. Her weekly unemployment insurance award came out to $177 per week, rather than $450.
Sponsored message
According to recent data, only 45 percent of people in L.A. are currently employed.
READ THE FULL STORY:
Our news is free on LAist. To make sure you get our coverage: Sign up for our daily coronavirus newsletter. To support our non-profit public service journalism: Donate Now.
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
