Sample Response to CO Unemployment Claim
The following is a sample letter I wrote on behalf of a client whose independent contractor attempted to claim unemployment benefits.
I am writing on behalf on my client with response to Ms. Davis claim for unemployment. While we respect the unemployment system and the benefits it provides to employees, an employer-employee relationship between ABC Company and Ms. Davis never existed. Ms. Davis held herself out to the public as a sole proprietor with expertise in project management. ABC Company contracted with Ms. Davis’ company to provide contract services and oversight on various short-term projects. Ms. Davis and her company were free from behavioral and financial control- timesheets, hours, tools of the trade, equipment, etc. were NOT under the control or direction of ABC Company. Ms. Davis’ was not discharged from ABC Company. Without the immediate need for additional project management the contract with Ms. Davis’ company ended.
Ms. Davis and her company were able to obtain and perform other project management contracts, and held itself out to the public as providing project management service. As such, an employer-employee by statute definition did not exist, and subsequently the claim for unemployment is without standing.
My client lost. Why? Unknown to me he had attempted to call the Colorado Department of Labor and Unemployment to resolve this issue before speaking with me. In the telephone conversation, he stated that he had fired Ms. Davis for not showing up to work on time. Doomed.
If you have an independent contractor claim unemployment benefits, talk to us first. Don’t hang yourself on silly words like terminated or fired.