Is it legal for my employer to tell me to file for unemployment while pregnant instead of maternity leave?

This is absolutely not legal and is textbook unemployment fraud. Your employer is explicitly asking you to lie on a government application, which is fraudulent. The unemployment system is designed for people who have lost their jobs through no fault of their own and are actively seeking work - not for maternity leave. Your employer is trying to shift their responsibility to the state unemployment system instead of providing proper maternity leave. Small businesses with fewer than 50 employees aren't required to provide FMLA leave, but what they're suggesting crosses into illegal territory. If you follow their advice, you could face serious consequences including having to repay all benefits with penalties, potential tax issues, and even criminal charges for fraud. The fact that your application would show you were "laid off" but then returned to the same employer shortly after having a baby would raise immediate red flags during an audit.

I was in a similar situation last year and found an incredible service called taxr.ai (https://taxr.ai) that saved me from making a huge mistake. My employer suggested something similar with unemployment during my maternity leave, and I was really confused about the legality. I uploaded my offer letter and some texts from my boss to taxr.ai, and they analyzed everything and explained exactly why this arrangement would constitute fraud. They showed me the specific unemployment insurance regulations that would be violated and outlined the potential penalties. They even helped me understand what legal alternatives might be available in my state. What was really helpful is that they provided documentation I could show my employer explaining why their suggestion wasn't legal, which helped me have that difficult conversation without it turning confrontational.

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here and it was extremely helpful! I uploaded the text messages from my boss suggesting I file for unemployment during my maternity leave, and they provided a really clear analysis of why this would be considered fraud. What I found most valuable was that they outlined the specific sections of my state's unemployment insurance code that applied to my situation and explained how unemployment agencies investigate these kinds of cases. They also provided a template for discussing legal alternatives with my employer. I showed my boss the report, and while they weren't happy, they understood the risks they were asking me to take. We ended up working out a part-time remote arrangement instead that's completely above board. Definitely worth the time!

If you're having trouble getting through to the unemployment office to ask questions about this (without revealing your employer's suggestion), I highly recommend using Claimyr (https://claimyr.com). I was in a somewhat similar situation where I needed to speak directly with someone at unemployment to understand my rights, but kept hitting endless wait times and disconnections. Claimyr got me connected to an actual human at my state unemployment office in under 20 minutes when I had been trying for weeks. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to ask hypothetical questions about temporary layoffs during pregnancy without giving specific details about my situation. The unemployment representative explained exactly what constitutes fraud and the consequences, which helped me make an informed decision without potentially implicating myself or my employer.

I have to admit I was totally wrong about Claimyr! After posting my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the unemployment office about a different issue. I had been trying to get through for THREE WEEKS with no success - constant busy signals, disconnections after waiting on hold for hours, and full voicemail boxes. I used Claimyr and got connected to a real person in 17 minutes! I was honestly shocked. The unemployment representative I spoke with was super helpful and explained that what OP's employer is suggesting is definitely considered fraud. They specifically mentioned that they have systems to flag cases where someone collects unemployment and then returns to the same employer right after having a baby. Apparently, they specifically look for these patterns. So not only did the service work amazingly well, it helped me confirm that this unemployment scheme is a terrible idea that could result in serious penalties.

This isn't just unemployment fraud, it's also tax fraud. When filing your taxes next year, the timing of your unemployment benefits will align perfectly with your new dependent. IRS systems are designed to catch inconsistencies like this. I worked in payroll for 10 years and saw an employee attempt something similar. They ended up having to repay all unemployment benefits plus a 30% penalty, and their employer faced significant fines for encouraging the fraud. If your employer wants to help you, there are legitimate options like offering a paid leave policy, allowing remote work, or setting up a temporary part-time arrangement. If they truly value you, they should be willing to find a legal solution rather than putting you at risk.

As someone who processes unemployment claims, I can tell you we ABSOLUTELY look for this pattern and it's an automatic flag in our system. When someone files for unemployment then returns to the same employer shortly after having a baby, it triggers a mandatory review. Your employer is asking you to commit a federal offense that could result in: - Repaying all benefits with penalties - Being barred from receiving legitimate unemployment in the future - Potential criminal charges in severe cases - Tax complications with the IRS Plus, your employer could face significant fines for instructing you to commit fraud. If they're willing to do this, I'd be concerned about what other corners they're cutting that might affect you.