All Laws Decoded

Unemployment for Self-Employed and Gig Workers in Alabama

Whether 1099 contractors, gig workers and the self-employed can collect unemployment in Alabama, and what misclassified workers can do.

Short answer: You cannot get regular unemployment benefits if you are self-employed full time. If an employer paid you in cash or gave you a 1099 instead of withholding taxes, the Department of Workforce asks you to report it, and notes this may have affected your benefits. Alabama Department of Workforce, Unemployment Guidebook (Benefit Rights and Responsibilities); Unemployment FAQ

Self-employed, 1099 and gig workersYou cannot get regular unemployment benefits if you are self-employed full time. If an employer paid you in cash or gave you a 1099 instead of withholding taxes, the Department of Workforce asks you to report it, and notes this may have affected your benefits. Self-employed people may qualify for Disaster Unemployment Assistance only after a presidentially declared major disaster; they must provide their last completed year's income tax records within 21 days of filing. An unemployed self-employed claimant is still treated as available for work if only taking steps to restart the self-employment.

Where to get help in Alabama

More Alabama unemployment benefits

FAQ

Can self-employed or gig workers get unemployment in Alabama?
You cannot get regular unemployment benefits if you are self-employed full time. If an employer paid you in cash or gave you a 1099 instead of withholding taxes, the Department of Workforce asks you to report it, and notes this may have affected your benefits. Self-employed people may qualify for Disaster Unemployment Assistance only after a presidentially declared major disaster; they must provide their last completed year's income tax records within 21 days of filing. An unemployed self-employed claimant is still treated as available for work if only taking steps to restart the self-employment.

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.