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My Employer Is Changing My Classification From W2 To 1099

Location: Ohio

I work for a very small company (<10 people). For many years, I’ve been employed as a salaried W2 employee with benefits such as health insurance and 401k.

In recent years, the business has struggled. We are a project based business and the projects have simply not been coming in. I’ve had tons of downtime, sometimes working a couple of hours a week, but still making my full salary.

This week, the owner called a company meeting and told us she couldn’t afford to pay our regular salaries and from now on we’ll only be paid for the hours we’re actually working. Specifically we will be reclassified as 1099 contractors. And benefits evaporate: no more insurance.

While honestly, it’s fair, I’m just left scrambling with what to do. Am I right to assume this is essentially a lay-off and that I’d have a case for unemployment? Or does this not count because I’m not technically being fired since I’m in a position to continue getting at least some work from the company.

submitted by /u/spooof
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My Employer Is Changing My Classification From W2 To 1099

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