Employees Covered By Unemployment Insurance

However, some services may not be covered, including:

• Elected and most appointed government officials
• Religious organization employees
• Commission-based salespeople
• Certain student workers 

Special Cases

• School employees and professional athletes: Covered by unemployment insurance, but benefits are not payable between terms, school holiday periods, or sports seasons if they are reasonably assured of returning to work following the break. 
• Family business employees: Covered by unemployment insurance if working for a family-owned corporation but both the employer and the claimant must disclose to UIA the claimant's relation to the business owners. 
  • If the family business is a partnership or sole proprietorship, owned by the worker's child or spouse, or if the business is owned by the worker's parents and the worker is under age 18, then they are not covered.
• Independent Contractors: In general, if a worker makes his or her services available to the public at large, and provides his or her own tools and works his or her own hours without any particular direction or control, the worker can be regarded as an independent contractor.
  • If a person performing services is an employee, then the employee’s wages are subject to state unemployment taxation and the employee may be eligible for unemployment benefits. 
  • If, however, the person is found to be an independent contractor, then the employer pays no state unemployment taxes on the individual’s earnings and the person’s services are not covered employment. 
  • Learn more about Independent Contractors vs. Employee in Fact Sheet 155.