Can you collect unemployment while starting a business in NYS?

Yes, you can start a business while collecting unemployment in NY, but there are specific rules you need to follow. You must report ANY income you earn from the business on your weekly claims, even if it's just $1. The key is staying under the partial benefit threshold each week. You also need to remain available for full-time work and continue your job search activities. The NYS Department of Labor has a Self-Employment Assistance Program (SEAP) that might be worth looking into for your situation.

I tried this last year and it got complicated fast. You have to be really careful about how you report business income because they consider any work you do for your business as work hours, even if you don't make money yet. I ended up having issues because I was spending 30+ hours a week on my startup but only made like $200 the first month.

Whatever you do, DON'T try to hide any business activity from NYS Department of Labor. They WILL find out eventually and then you'll owe back everything plus penalties. Been there, done that, learned the hard way.

I've been trying to get through to NYS Department of Labor for weeks to ask about this exact situation and can never get anyone on the phone. The hold times are insane and half the time I get disconnected. Has anyone found a better way to reach them? I'm in the same boat as OP and need to talk to someone who actually knows the rules.

wait so if i'm doing like freelance work while unemployed thats the same thing as starting a business?? i've been doing some graphic design gigs and reporting the income but nobody told me there were special rules about being available for work

The system is so confusing honestly. I've been collecting for 8 weeks and still don't understand half the rules. Good luck OP, hopefully someone here can give you better guidance than the NYS website does!

I'm in a similar situation - got laid off from my tech job and considering freelance web development while on unemployment. From what I've researched, the key things to remember are: 1) Report ALL income from any business activity, even if it's just $50, 2) You still need to be actively job searching and available for full-time work, 3) Keep detailed records of your hours and earnings. I've been documenting everything in a spreadsheet just in case they audit later. The SEAP program mentioned above sounds promising - I'm going to look into that too. Thanks for asking this question, it's really helpful to see everyone's experiences!

I went through this exact situation about 6 months ago when I started my consulting business while on unemployment. Here's what I learned: The most important thing is to be completely transparent with NYS DOL from the start. I called them (eventually got through after many tries) and explained my situation before I even started taking clients. They told me as long as I report all income and stay under the earnings threshold each week, I'd be fine. I also had to confirm I was still actively job searching and available for full-time work if offered. The weekly certification asks specifically about any work performed and income earned, so don't try to get creative with the reporting. One tip - I found it helpful to schedule my business development work for evenings/weekends so it didn't interfere with my availability for potential interviews during business hours. Six months later, my business is doing well and I never had any issues with my benefits. Just be honest and follow the rules!

I actually went through the SEAP application process last year and can share some details about it. There is an application process - you need to submit a business plan, financial projections, and demonstrate that your business idea is viable. The program only accepts a limited number of participants each year (I think it's around 1,000 statewide), so there can be competition to get in. The good news is that once you're accepted, you can work full-time on your business without the job search requirements, and you still receive your full unemployment benefits for up to 26 weeks while developing your business. The application typically opens in the spring, so timing might work well for you. I'd recommend calling the SEAP coordinator directly rather than the general unemployment line - they're much more knowledgeable about the program specifics. Even if you don't get into SEAP, you can still start your consulting business as others mentioned, just with more restrictions on reporting and availability requirements.