Can I still collect unemployment if I owe unemployment money to NYS Department of Labor?
I just found out I have an overpayment from 2023 that I never knew about - apparently I owe the NYS Department of Labor around $2,800. I lost my job last week and really need to file for unemployment again. Can I still collect benefits if I owe money from a previous claim? Will they automatically take it out of my weekly payments or completely deny my new claim? I'm stressed because I need the money to pay rent but don't want to make things worse with the overpayment situation.
16 comments


Nathaniel Mikhaylov
Yes, you can still file a new claim even with an existing overpayment. NYS Department of Labor will typically allow you to collect benefits but they'll deduct a portion from each weekly payment to recover the overpayment. Usually it's around 25% of your weekly benefit amount that gets withheld. You should still file your claim right away since there's a waiting period anyway.
0 coins
Melody Miles
•That's a relief! So they won't completely block me from getting benefits? 25% is better than nothing. Do I need to mention the overpayment when I file or will they see it automatically?
0 coins
Eva St. Cyr
same thing happened to me, they took like $75 out of my $300 weekly payment but i still got the rest
0 coins
Kristian Bishop
The overpayment won't prevent you from filing a new claim, but you should be prepared for the offset. You can also request a hearing to dispute the overpayment if you believe it was incorrectly calculated. Sometimes there are errors in their system, especially with work reporting or benefit calculations from previous claims. Check your my.ny.gov account to see the details of why the overpayment occurred.
0 coins
Melody Miles
•I'll definitely check my account. I honestly don't remember doing anything wrong with my reporting back then, so maybe it is an error.
0 coins
Kaitlyn Otto
Oh no this is exactly what I'm worried about happening to me! How did you find out about the overpayment? Did they send you a notice or did you just see it online? I've been so careful with my weekly claims but now I'm paranoid they're going to say I owe money somehow.
0 coins
Melody Miles
•I got a notice in the mail a few weeks ago but honestly I thought it was some kind of scam at first. It wasn't until I logged into my account that I saw it was real.
0 coins
Kristian Bishop
If you're having trouble getting through to NYS Department of Labor to discuss your overpayment options, you might want to check out claimyr.com - they help people get connected to actual agents. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. I used it when I had questions about my own overpayment and was able to speak to someone within a few hours instead of calling for days.
0 coins
Melody Miles
•Thanks, I'll look into that. I tried calling yesterday and was on hold for 2 hours before getting disconnected.
0 coins
Axel Far
Just file your claim and don't worry about it too much. The system will figure itself out and you'll still get most of your money. Better to have something coming in than nothing while you're unemployed.
0 coins
Aurora St.Pierre
I went through something similar last year. You can definitely still file a new claim - the overpayment won't block you from getting benefits. In my case, they automatically deducted about 30% from each weekly payment to recover what I owed. It wasn't ideal but I was still able to get enough to cover my basic expenses. The key is to file as soon as possible since there's usually a waiting week anyway. Also, make sure to keep detailed records of all your job search activities and any part-time work you might pick up, because they're really strict about reporting requirements now and you don't want to create another overpayment situation.
0 coins
Connor Murphy
•That's really helpful to know about the 30% deduction - thank you for sharing your experience! I'm definitely going to file ASAP. Quick question - when you say they're stricter about reporting requirements now, what specific things should I be extra careful about? I want to make sure I don't mess up again and create another overpayment.
0 coins
Logan Greenburg
I'm in a similar situation but haven't filed yet because I wasn't sure if the overpayment would block me. This thread is super helpful! One thing I'm wondering about - if they take 25-30% from each payment, does that percentage stay the same until the overpayment is paid off, or do they adjust it based on how much you still owe? Also, has anyone had luck setting up a separate repayment plan so they don't have to take as much from your weekly benefits?
0 coins
Finley Garrett
•Great questions! From what I understand, the percentage they deduct usually stays consistent until the overpayment is fully recovered - so if they're taking 25%, they'll keep taking 25% of each weekly payment until you've paid back the full amount. As for separate repayment plans, yes, you can sometimes arrange that! You'd need to contact them directly to set up a payment plan, which might allow for smaller deductions from your weekly benefits. It's definitely worth asking about when you file your claim or speak to an agent.
0 coins
Sadie Benitez
I'm dealing with a similar overpayment situation right now - about $1,900 from 2022 that I'm still paying back through weekly deductions. Just wanted to add that when you do file your new claim, make sure to report ANY income accurately, even small amounts from odd jobs or gig work. That's how a lot of these overpayments happen - people forget to report something or don't realize certain income counts. The good news is that once you're in the system paying back the overpayment, they usually don't hit you with penalties or interest as long as you keep filing honestly. Also, keep copies of everything - your weekly certifications, any correspondence from DOL, etc. It helps if there are ever questions later.
0 coins
Ryder Greene
•This is exactly the kind of detailed advice I needed - thank you! I'm definitely going to be super careful about reporting everything this time. You mentioned keeping copies of weekly certifications and correspondence - do you recommend keeping physical copies or are digital screenshots enough? Also, when you say "certain income counts" that people don't realize, what are some examples of income that might get overlooked? I want to make sure I don't accidentally create another overpayment situation down the road.
0 coins