Can an employer fight unemployment benefits claim through NYS Department of Labor?
My former employer just contacted me saying they're going to contest my unemployment claim with NYS Department of Labor. I was laid off due to budget cuts but now they're claiming it was for poor performance. Can they actually fight my claim after I've already been approved? I've been getting benefits for 2 weeks now and I'm worried they'll make me pay everything back. Has anyone dealt with an employer trying to challenge their unemployment after the fact?
17 comments


Natalia Stone
Yes, employers can absolutely contest unemployment claims even after initial approval. They have up to 10 days from when NYS Department of Labor notifies them to respond to the claim. If they contest it, your case will go into adjudication and they'll investigate both sides. You'll get a questionnaire asking for your version of events and any documentation you have. Keep filing your weekly claims during the investigation process.
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Nolan Carter
•So I won't lose my benefits immediately? How long does the adjudication process usually take with NYS Department of Labor?
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Natalia Stone
•You'll keep receiving benefits during adjudication unless they determine you're not eligible. Then you might have to pay back what you received. The process can take anywhere from 2-8 weeks depending on how complex your case is.
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Tasia Synder
this happened to me last year!! my boss tried to say i quit when i was actually fired. had to gather all my text messages and emails to prove what really happened
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Nolan Carter
•Did you win your case? What kind of evidence did NYS Department of Labor want to see?
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Selena Bautista
Start gathering your documentation now - any emails about the layoff, your termination letter, performance reviews, witness contact info if coworkers saw what happened. NYS Department of Labor will want evidence from both parties. If this was truly a layoff due to budget cuts, you should have documentation supporting that. Don't let them intimidate you with false claims about poor performance if that wasn't the real reason.
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Nolan Carter
•I do have the email about company-wide layoffs that went out the same day. Should I submit that proactively or wait for them to ask?
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Mohamed Anderson
If you're having trouble reaching someone at NYS Department of Labor about this, I used a service called Claimyr (claimyr.com) that helped me get through to an actual agent when my employer contested my claim. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Was super helpful for getting real answers about my adjudication timeline instead of just waiting and worrying.
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Nolan Carter
•Thanks, I'll check that out. I've been trying to call NYS Department of Labor for days but keep getting disconnected.
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Ellie Perry
Employers contest claims all the time to try to keep their unemployment insurance rates low. Even if they laid you off they might claim it was for cause to avoid paying higher premiums. It's frustrating but just stick to the facts - if you were laid off due to budget cuts and have proof, you should be fine. The adjudication officer will review everything and make a determination.
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Landon Morgan
ugh employers are the worst about this stuff... they fire people then try to screw them out of benefits too
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Sara Unger
Document everything you can remember about your layoff - dates, who told you, what exactly they said, any witnesses present. If there were multiple people laid off at the same time, try to get contact info for them as they could be witnesses. Also check if you have any performance reviews or emails that show you were meeting expectations before the layoff. The key is showing this was truly a budget-related layoff and not performance-based termination. NYS Department of Labor will want to see a clear timeline of events from both sides.
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Admin_Masters
•This is really helpful advice! I'm realizing I should probably reach out to the two other people who were laid off the same day as me. We were all told it was budget cuts in the same meeting. Do you think their testimony would carry weight with NYS Department of Labor if my employer is now changing their story to performance issues?
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Malik Johnson
•Absolutely! Having witnesses from the same layoff meeting is huge evidence in your favor. NYS Department of Labor definitely considers witness testimony, especially when multiple people can confirm the same story about budget cuts. If your employer told all of you it was budget-related in that meeting, it would be very hard for them to suddenly claim it was performance-based for just you. I'd reach out to those coworkers ASAP and ask if they'd be willing to provide a statement about what was said in that meeting. The more consistent testimony you have, the stronger your case becomes.
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Javier Morales
Keep detailed records of all communication with your former employer about this contest. If they're changing their story from layoff to performance issues, that inconsistency will work in your favor during adjudication. Also check your employee handbook - many companies have progressive discipline policies that require written warnings before termination for performance. If you never received formal warnings or a performance improvement plan, that supports your case that this was truly a layoff. NYS Department of Labor adjudicators are experienced with employers who try to reframe layoffs as terminations for cause to avoid paying higher unemployment insurance premiums.
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Javier Cruz
•That's a great point about the progressive discipline policy! I never thought to check my employee handbook for that. Now that I think about it, I never received any written warnings or performance improvement plans - my last review was actually positive just 3 months ago. The fact that they're suddenly claiming poor performance after telling me and two others it was budget cuts definitely seems suspicious. I'll make sure to mention the lack of any formal disciplinary process when I respond to NYS Department of Labor's questionnaire.
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Nora Brooks
I went through something similar last year when my employer contested my claim after approving it initially. The key thing that helped me was keeping a timeline of everything - dates, conversations, who was present, etc. Since you mentioned this was a company-wide layoff due to budget cuts, that's actually really strong evidence in your favor. NYS Department of Labor looks at patterns - if multiple people were laid off on the same day for the same reason, it's much harder for your employer to claim yours was performance-related. Make sure to keep filing your weekly claims during the adjudication process and respond quickly to any requests for information. The fact that they're changing their story from budget cuts to performance issues will likely raise red flags with the adjudicator. Stay calm and stick to the facts - you've got this!
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