Benefits denied after doing some 1099 work? Why?

[u/melted-turquoise]

I was laid off from my full time (W-2) marketing job in early April. I've been submitting my weekly UI claims and receiving my unemployment benefits as expected (about $700 per week). About three weeks ago, my former employer reached out and asked if I wanted to do some project-based contract work for them (1099), a couple of hours per week. The first week I only worked one hour (earned 50 bucks), which I reported on my weekly claim as self employment income. But then they sent a decision letter (dated 5/26) saying my benefits have been denied because I no longer fit the criteria: 1) Looking for work as an employee of others, 2) willing to give up your self-employment to accept work with an employer, and 3) available for at least 40 hours with an employer during the days and hours usual for your occupation.

However I DO fit all these criteria. I immediately filed an appeal in the online portal, and reiterated that I am still looking for work as an employee of others, I am willing to give up my self-employment to accept work with an employer, and I am indeed available for at least 40 hours/week with an employer. I called ESD to try and get some insight, and the gentleman I spoke with said they do an internal review before submitting the appeal to OAH for a hearing. He said my explanation in the portal was thorough, and while he couldn't say for certain whether the decision would be reversed or not, I got the impression that since I explained how I do in fact meet the criteria for unemployment benefits that they listed, it was looking good.

Today (6/3) I got a letter from OAH saying they received my appeal and would contact me about a hearing date soon. I am just so confused—why is this so complicated? I have now had two weeks of benefits denied, and to be clear, the amount I made in self employment each of those two weeks was significantly less than my total weekly benefit amount. In order to continue receiving benefits, I've paused any self employment work for the time being. Am I missing something? Why is this happening? Thank you in advance if you've already read this far. Any advice going into this hearing would also be appreciated.

[u/SoThenIThought_]

Hi there have you had a chance to check out the catalogued material? I would imagine that doing that would relieve some of the anxiety about not knowing how this is going to go

• Self Employment