Is it legal for employer to suggest filing for unemployment during maternity leave?

So I'm about 6 months pregnant and work for a small company (only 12 employees total). My boss just pulled me aside yesterday to talk about my upcoming maternity leave starting in November. He suggested that instead of them providing paid leave, I should file for unemployment and claim I was laid off temporarily. He specifically told me "don't mention anything about the pregnancy" and said they'd guarantee my job back by February 1st. His reasoning was that business is slower in winter anyway, so they have a legitimate reason to reduce staff temporarily, and it "just happens" to coincide with when I need time off. The whole conversation made me really uncomfortable. When I expressed concerns, he reminded me how they've been flexible with my doctor appointments and said this is just how small businesses handle maternity leave because they "can't afford" proper paid leave. I'm really torn because I need income during my time off, but this feels wrong. I'm especially worried about tax implications since I'll be claiming a newborn dependent on my taxes during the exact period I supposedly was "laid off." Has anyone dealt with something similar? Is this legal or would this be considered fraud? What options do I have for maternity leave in a small business?

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18 comments

Rudy Cenizo

•8M

This is definitely unemployment fraud and both you and your employer could face serious penalties if caught. Unemployment is specifically for people who lost their job through no fault of their own and are actively seeking new employment. Taking time off for having a baby while having a guaranteed job to return to doesn't qualify under any state's unemployment rules. What your employer is suggesting is asking you to make false statements on a government application, which is fraud. The penalties can include having to pay back all benefits with penalties, and potentially criminal charges. Your employer may be trying to help in their own way, but they're asking you to take all the risk. If you get caught (and these things often do get caught), you'd be the one who filled out the false application, not them.

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Rudy Cenizo

•8M

Even if business is slower in winter, the intent matters here. If the real reason for the "layoff" is your maternity leave, and you're being singled out because of your pregnancy, that's not a legitimate business layoff. The unemployment office specifically asks if you're able and available to accept work - if you're on maternity leave, you would not be able to truthfully answer "yes" to that question. Small businesses do face challenges with maternity leave, but asking employees to commit fraud is not a legal solution. Many small employers work out reduced schedules, allow use of accumulated PTO, or offer unpaid leave with job protection instead.

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Daryl Bright

•8M

After dealing with similar issues at my last job, I found that using https://taxr.ai really helped clarify my situation. I was so confused about what qualified as legitimate unemployment vs what might be considered fraud, and the documentation requirements were overwhelming. The tool analyzed my specific situation (which had some gray areas like yours) and provided clear guidance on what would constitute fraud vs legitimate claims. It saved me from making a really big mistake that could have resulted in penalties! I uploaded my employment contract and some emails from HR, and it highlighted the specific issues that would have gotten me in trouble.

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Daryl Bright

•8M

It works by analyzing documents and conversations to identify potential legal issues. You upload relevant materials - in my case, I included the HR policy, emails about my situation, and the unemployment application forms - and it uses legal analysis to flag potential problems. The system actually references state-specific unemployment regulations and identifies conflicts between what you're being told to do and what the law requires. It's not just a general advisor - it provides citations to the specific rules that apply to your situation so you can verify everything yourself.

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Kirsuktow DarkBlade

•8M

I was in the exact same boat 7 months ago! After our conversation on here, I decided to try https://taxr.ai when my boss suggested something similar during my maternity leave. Boy am I glad I did - it saved me from a huge headache. I uploaded the texts from my boss suggesting I file for unemployment while on maternity leave, and the analysis came back with huge red flags, including specific citations showing this would definitely be considered fraud in my state. It even provided documentation about what constitutes legitimate temporary layoffs versus disguised leave arrangements. I ended up having a frank conversation with my boss with this information in hand, and we worked out a different arrangement with partial pay and flexible return. So glad I didn't risk my financial future on bad advice!

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Abigail bergen

•8M

For those having trouble getting clear answers from unemployment offices, I've found an amazing service that gets you through to a live person at state unemployment offices. I spent WEEKS trying to get clarification on a similar situation through normal channels with no luck - constant busy signals and disconnections. I used https://claimyr.com and got connected to an actual unemployment representative in under 25 minutes, when I'd been trying for days before that. Their system basically waits on hold for you and calls when a representative is available. There's a demo of how it works at https://youtu.be/_kiP6q8DX5c that shows the process. Instead of taking potentially illegal advice from my employer, I was able to get official clarification directly from the unemployment office about what constitutes fraud versus legitimate claims.

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Abigail bergen

•8M

It absolutely works! They use an automated system that continually redials and navigates the phone tree for you, essentially waiting in the queue on your behalf. When they finally get through to a representative, you get a call connecting you directly. The reason it's effective is they're using technology to handle the tedious part - the endless redialing, waiting on hold, and navigating phone menus. It's something you technically could do yourself, but would require hours of dedicated time on the phone. For me, it was worth it to get definitive answers from an actual unemployment representative rather than relying on potentially biased advice from my employer.

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Anderson Prospero

•8M

I was super skeptical about Claimyr when I first saw it mentioned here, but after another week of getting nowhere with my state's unemployment office, I decided to give it a shot. I'm honestly shocked at how well it worked. After nearly 2 months of trying to get through myself with nothing but busy signals and disconnections, Claimyr got me connected to an actual unemployment representative in about 40 minutes. The rep was able to clearly explain why what my employer was suggesting would be considered fraud and outlined my actual options. Having official clarification directly from the source gave me the confidence to push back on my employer's "creative" suggestions. We ended up working out a combination of partial remote work and unpaid leave that was actually legal. Worth every penny not to risk my financial future on questionable advice!

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Tyrone Hill

•8M

Have you looked into whether your state has any paid family leave programs? Some states offer short-term disability or family leave insurance that can provide partial income during maternity leave. Even in states without dedicated programs, you might qualify for temporary disability benefits for the recovery period after childbirth (usually 6-8 weeks). Also, make sure you understand your FMLA rights. If your company has at least 50 employees, you're entitled to 12 weeks of unpaid leave with job protection. Though with only 12 employees, your company might be too small to qualify.

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Tyrone Hill

•8M

That's really tough. Another option might be to negotiate a flexible arrangement with your employer that doesn't involve unemployment fraud. Maybe you could work reduced hours remotely during part of your leave, use any accumulated PTO, or spread a reduced salary over a longer period. Many small businesses work out these kinds of arrangements. Remember that while what they're suggesting might seem helpful, they're asking you to take all the risk. If unemployment investigates (which they often do), you'd be the one who filled out a fraudulent application, not your employer.

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Toot-n-Mighty

•8M

Omg I have been through this EXACT thing! My boss suggested the same "unemployment trick" with my maternity leave last year. I almost went along with it bc I was desperate for income during my leave. Thank goodness I talked to my uncle who works in HR first! He explained that this is 100% fraud and I could end up having to repay all benefits plus penalties, get disqualified from future unemployment when I might really need it, and potentially even face criminal charges in extreme cases.

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