THE WHOLE SYSTEM IS RIGGED!!! Companies will say ANYTHING to avoid paying claims even though they've been paying unemployment taxes for years. It's not like the money comes directly out of their pocket at that point - it's already been paid to the state. But they still fight every single claim because it affects their experience rating and future tax rates.

I went through something similar last year. The key thing to understand is that your employer's obligation to pay unemployment taxes is completely separate from whether your specific claim gets approved. If they've been in business and meet the basic requirements (which sounds like they do), they've been paying quarterly unemployment taxes all along - that money is already in the system. What they're probably disputing is the reason for your separation, not their tax obligations. Document everything about your layoff and be patient with the adjudication process. NYS Department of Labor will investigate both sides and make a determination based on the facts.

I've been trying to get through to NYS Department of Labor for weeks about a similar eligibility question and their phone lines are impossible. If your cousin needs to talk to someone directly about her specific situation, I recently used a service called Claimyr (claimyr.com) that actually got me connected to an agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of calling and getting disconnected.

Just wanted to add that even if someone isn't eligible for regular unemployment, there might be other programs available. NYS Department of Labor has different types of assistance and the eligibility rules can vary. Also worth checking if any of the freelance clients incorrectly classified her as 1099 when she should have been W-2 - that happens more than people think and can affect benefit eligibility.

UPDATE: For anyone who finds this thread in the future - my claim was approved after exactly 18 days from when I first applied. I received a text notification and an email directing me to check my account. The funds were on my KeyBank card the next day after approval. I did have to keep certifying weekly while waiting for approval.

Congratulations on getting approved! This is such a helpful thread for people going through this process. I'm currently in week 2 of waiting after receiving my KeyBank card, so reading about your 18-day timeline gives me hope. Did you have to submit any additional documentation during the review period, or was it pretty straightforward once you submitted your initial application? Also wondering if you got the full backpay for the weeks you certified while waiting for approval?

Most common reasons for overpayment are not reporting work income correctly or being disqualified after the fact (like if they find out you quit instead of being laid off). If you're being honest on your weekly claims and have proper documentation you should be okay. The key is keeping good records of everything just in case.

I totally understand your anxiety about this! I was in the same boat a few months ago, constantly worrying about getting hit with an overpayment notice. What really helped me was setting up a simple system to track everything. I created a basic spreadsheet with tabs for my weekly claims (screenshots and dates), job search activities, and any work/income I report. For the job search piece, I log way more than the minimum 3 contacts per week - usually 5-6 just to be safe. Each entry includes company name, position, application date, method (Indeed, company website, etc.), and any responses. It takes maybe 10 minutes per week but gives me huge peace of mind. Also, I check my payment history on my.ny.gov every few weeks to make sure there are no flags or issues. The system does show pending determinations or problems if there are any. As long as you're being honest and thorough with your reporting, you should be fine. The horror stories usually involve people who didn't report work income or made genuine mistakes with the confusing rules.

I went through this EXACT situation about 8 months ago and it was such a headache! Your payment is definitely stuck in limbo right now since the system tried to deposit to your closed account. Here's what you need to do: 1. Call Key Bank at 1-866-295-2955 first to confirm your account status and get a reference number - this usually takes 15-20 mins on hold which is way better than NYSDOL 2. Then you absolutely MUST speak to someone at NYSDOL to have them manually reissue the payment. There's no automatic process when accounts are closed due to overdrafts vs just expired cards 3. While you have them on the phone, ask to switch to direct deposit for future payments so you never have to deal with Key Bank again 4. Your money isn't lost - they hold it for about 30 days before potentially sending it back, so you have time but don't wait too long I know the phone situation is impossible, but if regular calling doesn't work, I honestly had success with that Claimyr service others mentioned. Cost me like $25 but saved my sanity and got me connected within an hour. Once I actually talked to someone at NYSDOL, they reprocessed my payment in 2 days since the original approval was already there. Hang in there - I know it's stressful when rent is due, but this IS fixable! Document everything and get those reference numbers. You got this! 💪

I just went through this exact same nightmare last month! Your payment is definitely stuck right now because the system tried to deposit to your closed Key Bank account. Here's what worked for me: First, call Key Bank at 1-866-295-2955 to get official confirmation your account is closed and ask for a reference number - this usually only takes 15-20 minutes on hold (way better than NYSDOL). Then you absolutely HAVE to speak with someone at unemployment to manually reissue the payment. Since your account was closed due to overdrafts (not just expired), there's no automatic card replacement. Your money isn't lost though - they hold it for about 30 days before potentially returning it to the state. For actually getting through to NYSDOL, I tried calling during the 8:05-8:30am window on weekdays but honestly had better luck with that Claimyr service people mentioned. Cost me $20 but got me connected in under an hour when I'd been trying manually for over a week. Once you get someone on the phone, ask them to switch you to direct deposit for future payments so you never have to deal with Key Bank again. When I did this, they were able to redirect my stuck payment straight to my bank account within 48 hours. I know it's super stressful when rent is due, but this IS fixable! Get that Key Bank reference number first, then tackle the NYSDOL call. You got this! 💪