Can I do gig work while on unemployment benefits in New York?

Yes, you can do gig work while on unemployment but you MUST report all earnings on your weekly claim certification. NYS Department of Labor allows you to earn up to a certain amount before they start reducing your benefits. For 2025, you can earn up to $143 per week without any reduction. If you earn more than that, they'll deduct 25% of the excess from your weekly benefit amount. So if your weekly benefit is $400 and you earn $200 in gig work, you'd lose $14.25 from your benefit ($200-$143=$57, then $57 x 0.25 = $14.25).

i've been doing instacart while on UI for months, just make sure you report it when you do your weekly claim. the system will calculate how much to deduct automatically

The key thing is staying under that weekly earnings threshold if you want to keep your full benefit. I'd recommend tracking your gig earnings daily so you don't accidentally go over. Also remember you still need to meet your job search requirements - gig work doesn't count toward those 3 weekly job contacts you need to log in the system.

If you're having trouble reaching NYS Department of Labor to ask about this directly, I used a service called Claimyr (claimyr.com) to get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. It was super helpful when I had questions about reporting my freelance income and couldn't get through the phone lines.

Just be careful because some people think you can hide gig earnings but NYS Department of Labor will find out eventually. My cousin got hit with a huge overpayment notice because he wasn't reporting his Uber income properly. Better to be honest from the start.

One more thing to keep in mind - when you do gig work, you'll be considered self-employed for tax purposes, so you'll need to set aside money for taxes since gig companies don't withhold them. I learned this the hard way when I was doing DoorDash while on unemployment. Also, make sure you understand how NYS Department of Labor defines "available for work" - if you're doing gig work during typical business hours, they might question whether you're truly available for full-time employment. I'd recommend doing gig work mainly evenings and weekends to avoid any potential issues with your claim.

I've been doing gig work while on unemployment in NY for the past few months and wanted to share some practical tips. First, definitely use a spreadsheet or app to track your daily gig earnings - it makes reporting so much easier when you do your weekly certification. Second, I found it helpful to aim for staying just under that $143 threshold most weeks to keep my full benefits, then maybe go over occasionally when I really needed extra cash. The NYS Department of Labor system is pretty straightforward once you get used to reporting the earnings. Also, don't forget that your gig work expenses (gas, car maintenance, etc.) can be deducted when you file taxes, which helps offset some of the self-employment tax burden mentioned earlier. Just make sure you keep all your receipts!

I want to add one more important point that hasn't been mentioned yet - make sure you understand the difference between gross and net earnings when reporting to NYS Department of Labor. You need to report your gross earnings (what you made before expenses), not what you actually took home after gas, wear and tear on your car, etc. So if you made $100 doing DoorDash deliveries but spent $20 on gas, you still report the full $100 on your weekly certification. The expenses can only be deducted later when you file your taxes, not when you're calculating your weekly UI benefit reduction. I made this mistake early on and had to call to clarify with an agent. It's a common misconception that trips people up!

Another thing to consider is keeping documentation of your job search activities separate from your gig work schedule. I recommend using a calendar or planner to block out specific times for job applications, interviews, and networking - this way if NYS Department of Labor ever questions your availability for full-time work, you can show that you're actively dedicating substantial time to finding permanent employment. I typically spend mornings on job search activities and save gig work for afternoons/evenings. Also, when you do land interviews, make sure you're available and not committed to gig work during those times. It shows you're prioritizing your job search over the temporary gig income, which is exactly what unemployment benefits are designed to support.