Can unemployment take money back - NYS Department of Labor demanding repayment

Unfortunately yes, NYS Department of Labor can demand repayment if they determine you received benefits you weren't entitled to. This is called an overpayment notice. You have appeal rights though! Check the notice for the appeal deadline - usually 30 days from the date on the letter. Don't ignore it because they can garnish future benefits and even tax refunds if you don't respond.

Yes definitely appeal! I had the same thing happen to me last year for $1,900. NYS Department of Labor said I didn't meet job search requirements for certain weeks but I had all my documentation. The appeal process took 3 months but they ended up reducing it to only $400. You need to gather all your records - work search logs, any correspondence with NYS Department of Labor, proof of earnings if this involves working while claiming.

This exact thing happened to my brother and he couldn't get through to anyone at NYS Department of Labor to explain the situation. He ended up using this service called Claimyr (claimyr.com) that helped him actually reach a real person to discuss his overpayment. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. He was able to get clarification on why they thought he owed money and it turned out to be a mistake in their system.

OMG this is my worst nightmare! I've been terrified they'll come after me for something like this. How do they even decide to review old claims? Do they randomly audit people or what? I've been unemployed twice in the last two years and now I'm paranoid they're going to say I did something wrong.

The NYS Department of Labor overpayment system is completely broken. They send these letters out like candy without proper investigation. I know someone who got hit for $5K because their computer system couldn't properly match wage records. Meanwhile it takes MONTHS to get through their appeal process while they're threatening collection action. It's designed to scare people into paying even when they don't owe anything.

Whatever you do, don't just ignore it. Even if you think it's wrong, you have to respond within the timeframe or you lose your right to appeal. I learned this the hard way with a different issue.

I went through this exact situation last year with a $3,200 overpayment notice. The key thing is to immediately request all the documentation they used to make their determination - you have a right to see exactly why they think you weren't eligible. In my case, they had incorrect information about my work history that my previous employer never corrected with them. I appealed, provided payroll records and W-2s, and got the whole thing dismissed. The appeal process is intimidating but it's your best shot. Also, if you do end up owing something, they usually offer payment plans rather than demanding a lump sum. Don't panic - just act quickly within that 30-day window.