University of Phoenix
HRM/546
06:31:29 GMT -05:00
, Labor Law
In the paragraphs below we will determine if Jimmy of Rich Estates of the estate
planning firm was an independent contractor or an employee. We will look at all the information
given and provide examples and descriptions of tests and labor laws that can be used to
determine what employment label Jimmy falls under and if him being laid off and filling out
unemployment benefits was correct. We will give our thoughts on the liabilities when contractors
are terminated.
Rule of Law (ROL) Requirements to Draw Unemployment Insurance
Many states have different guidelines regarding unemployment eligibility and if the
employee qualifies for unemployment. The guideline in Illinois is that employee must be able to
work, and are not disabled, they employee must actively looking for work and must provide
proof that they are searching for employment. The employee must also certify every week to
qualify to receive benefits, last the employee cannot make more than their weekly unemployment
allowance, however if that employee makes less then they will be able to work as well draw their
unemployment benefits.
Independent contractors are not able to draw unemployment in Illinois, however during
the pandemic even independent contractors were able to draw unemployment because they could
not work. This was federally mandated that states were to provide benefits for everyone that
could not work, I say this to say that depending on the situation exceptions can be made. The Act
that allowed this was the CARES Act (2019-2020) without this act a lot of independent
contractors would have struggled during the pandemic.
Determinations of Legal Test for Jimmy as an Employee and Independent Contractor
06:31:29 GMT -05:00