Pregnant and being told to claim unemployment instead of maternity leave - legal?

What your employer is suggesting is absolutely unemployment fraud, and both you and the company could face serious consequences. Unemployment is specifically for people who have lost their jobs through no fault of their own and are actively seeking new employment - not for someone on maternity leave with a guaranteed job waiting. If you file an unemployment claim stating you were laid off when you weren't, that's a false statement. When you certify for benefits each week, you'll have to confirm you're available for and seeking work, which wouldn't be true while you're recovering from childbirth and caring for a newborn. The penalties can include having to repay all benefits with interest, being disqualified from future benefits, fines, and in serious cases, criminal prosecution. Your employer could face increased unemployment tax rates and penalties for participating in the scheme. Instead, look into your legal options. The Family and Medical Leave Act (FMLA) may apply if your company has at least 15 employees and you've worked there over a year. This provides 12 weeks of unpaid, job-protected leave. Some states have paid family leave programs too. Check what's available in your state - you might qualify for state disability insurance during your recovery period.

I just went through something similar last year! I found this amazing service called taxr.ai (https://taxr.ai) that helped me understand my maternity leave tax situation. My employer was also suggesting some questionable approaches to "help me out" financially during my leave. The tool analyzed my specific situation and showed me that what my boss was suggesting could be considered fraud. It also outlined my legitimate options, including short-term disability insurance (which I didn't even know I had through my job). Their document analysis feature flagged exactly which parts of my employment contract covered leave situations. The best part was they showed me how to document everything properly to protect myself. When I filed my taxes, I had zero issues because everything was properly categorized and I had documentation for every income source. It saved me from potentially getting flagged for an audit due to inconsistencies between my employment status and benefits received.

I tried taxr.ai after seeing it mentioned here and WOW it was exactly what I needed! I uploaded my employment contract and benefits paperwork, and it immediately identified that I was eligible for short-term disability through my employer that would cover 60% of my salary for 6 weeks. My HR never even mentioned this to me! It also showed me that in my state, employers with as few as 10 employees have to provide job protection for pregnancy leave. The document analysis caught several inconsistencies between what my boss was telling me and what my actual rights were. When my employer suggested something similar to what yours is suggesting (claiming reduced hours instead of maternity leave), the system flagged it as potentially fraudulent and outlined the specific regulations it would violate. I was able to approach my conversation with HR with actual documentation instead of just concerns. Seriously saved me from making a huge mistake that could have resulted in owing back unemployment benefits with penalties.

Have you tried calling the IRS or state unemployment office directly? I was in a similar situation last year and spent WEEKS trying to get through to someone who could give me a straight answer. Always busy signals or 2+ hour hold times only to get disconnected. I finally used Claimyr (https://claimyr.com) to connect with an unemployment representative. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They got me through to a real person in about 20 minutes instead of the 3+ hours I was spending trying on my own. The unemployment specialist I spoke with gave me clear information about what would constitute fraud (exactly what your employer is suggesting - claiming layoff when it's actually maternity leave) and what legitimate options I had. They also connected me with my state's paid family leave program which I didn't even know existed! Having that official guidance directly from the source gave me the confidence to push back when my employer was suggesting questionable approaches. It also helped me avoid potentially serious legal issues down the road.

OK I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it while dealing with my own tax issue (not pregnancy related, but still needed to talk to a government rep urgently). Got connected to an actual human at the unemployment office in under 30 minutes after spending THREE DAYS trying on my own. The rep confirmed that what your employer is suggesting is 100% fraud and explained that both you and the company could face serious penalties. But the better news: she told me about our state's Paid Family Leave program that I never knew existed! Apparently in my state employers have to provide information about it but many small businesses don't. The benefit is partially funded through a small payroll deduction that shows up as "SDI" on my paystubs (I always wondered what that was). Since I had this official information, I was able to go back to my employer with confidence instead of just accepting what they were telling me. Now I'm getting legitimate benefits without worrying about fraud.

So as someone who works in HR (not giving legal advice, just sharing knowledge), what your employer is suggesting is textbook unemployment fraud. When you certify for unemployment, you have to state that you're available for work and actively seeking employment - neither of which is true when you're on maternity leave. Have you checked if your state has any paid family leave programs? Even in smaller companies, you might have options. Also check if you have short-term disability insurance either through your employer or that you could purchase privately. That's a legitimate way to receive income during recovery from childbirth. Another thing - document EVERYTHING. If your employer is putting this suggestion in writing (texts, emails), save those. If they're saying it verbally, follow up with an email "to confirm our conversation about my leave options." This creates a paper trail protecting you if they try to claim they never suggested this approach.

Omg totally illegal! My sister works for unemployment and she says people get caught doing this ALL THE TIME. They can check hospital records, birth certificates, social media, etc. The system flags cases where someone files taxes with a new dependent born during unemployment claims. Also when u certify for unemployment benefits every week, you have to confirm ur available to work full time. If ur recovering from childbirth/caring for newborn, that's not true. Lying on those certifications is fraud. Penalties are no joke. My cousin got caught doing similar (different situation but same idea of claiming unemployment when not eligible) and had to repay ALL benefits plus a 30% penalty. They also banned her from getting unemployment for 5 years, which really hurt when she actually did lose her job later. Tell ur work NO WAY and start looking into legitimate options like short term disability. Some states have paid family leave too.

This is definitely unemployment fraud and you should absolutely not do this. I work in tax preparation and see the aftermath of these situations regularly. The IRS and state unemployment offices have sophisticated cross-referencing systems that will catch discrepancies between your unemployment claims and tax filings. When you file your 2025 taxes claiming a newborn dependent born in December, but also received unemployment benefits during that same period for being "laid off," that's going to trigger automatic flags in the system. The timeline will be obvious - you can't be actively seeking work while in the hospital giving birth and caring for a newborn. Beyond the fraud issue, there are legitimate options you should explore first. Many people don't realize that short-term disability insurance often covers pregnancy and childbirth recovery. Check your employee benefits package - you might already have this coverage. Also, some states have temporary disability insurance programs that provide partial wage replacement during recovery from childbirth. If your employer is genuinely experiencing financial hardship and can't provide paid leave, they should be honest about that rather than suggesting illegal workarounds. There may be legitimate ways to structure unpaid leave with partial income replacement through proper channels. Document everything about these conversations and consult with an employment attorney if needed. Your employer putting you in this position is problematic on multiple levels.

As someone who's dealt with similar employer pressure in the past, I want to emphasize how important it is to trust your instincts here. You already know this feels wrong, and you're absolutely right to be concerned. What your employer is suggesting isn't just risky - it's a federal crime. Unemployment fraud can result in criminal charges, hefty fines, and having to repay benefits with penalties and interest. The fact that they're explicitly telling you to lie about your pregnancy makes this even more serious. I'd recommend taking these steps immediately: 1. Document everything - follow up any verbal conversations with emails "confirming what we discussed" 2. Review your employee handbook and benefits package for any short-term disability coverage 3. Research your state's pregnancy/disability benefits programs 4. Consider consulting with an employment attorney, especially since your employer is pressuring you to commit fraud Remember, a good employer should be helping you find legitimate solutions, not asking you to break the law. The fact that they've suggested this before shows a pattern of problematic behavior that could put other employees at risk too. Your financial needs during maternity leave are valid and important, but there are legal ways to address them. Don't let your employer's "solution" jeopardize your future financial security and legal standing.