Can I sue the NYS Department of Labor for unemployment claim mishandling?

Unfortunately, suing government agencies like NYS Department of Labor is extremely difficult due to sovereign immunity protections. You'd need to prove gross negligence or constitutional violations, which is a very high bar. Your best bet is to exhaust all administrative remedies first - file another appeal on the overpayment, request a hearing, and document everything. If you can prove they violated their own procedures repeatedly, you might have grounds for a Section 1983 civil rights claim, but you'd need a lawyer who specializes in government liability.

I went through something similar last year with the overpayment mess. Instead of thinking about suing right away, focus on getting through to someone who can actually fix your account. I know it's nearly impossible to reach NYS Department of Labor by phone, but I found this service called Claimyr (claimyr.com) that actually got me connected to a real person within a few days. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. It was way easier than spending weeks trying to call myself, and the agent was able to see exactly what went wrong with my overpayment calculation.

THE WHOLE SYSTEM IS BROKEN!!! I've been dealing with NYS Department of Labor for 6 months now and they've screwed up my claim at least 5 different ways. First they said I didn't work enough quarters, then they said I quit voluntarily when I was FIRED, then they approved me but never sent payments, now they're saying I owe them money too! It's like they're doing this on purpose to avoid paying anyone. We should all sue them together in a class action lawsuit.

honestly you probably can't sue them but maybe try contacting your state rep or something? my cousin had issues with his claim and called his assemblyman's office and they actually helped him get it sorted out faster than trying to deal with NYS Department of Labor directly

Before considering legal action, make sure you're keeping detailed records of every interaction with NYS Department of Labor. Save all emails, take screenshots of your online account, write down dates and times of phone calls and what was discussed. If they're truly violating due process or their own regulations systematically, this documentation will be crucial. Also check if your state has an unemployment insurance ombudsman or inspector general who handles complaints about the department's operations.

Same boat here. Been fighting an overpayment notice for 8 weeks now and it's like talking to a wall. The stress is killing me and affecting my job search too because I'm constantly worried about this hanging over my head.