Can you do freelance work while on unemployment benefits from NYS Department of Labor?

Yes, you can do freelance work while on unemployment, but you MUST report all earnings on your weekly claim certification. NYS Department of Labor has specific rules - you can earn up to 25% of your weekly benefit rate without any reduction. Anything over that amount gets deducted dollar-for-dollar from your benefits. So if your weekly benefit is $400, you can earn up to $100 without losing any benefits.

be careful with this stuff because they audit freelance work all the time now. i got caught not reporting some side work last year and had to pay back like $2000 in overpayments. not worth the risk

I've been freelancing while on unemployment for months without issues. The key is being 100% honest on your weekly certifications. When you report freelance income, you'll need to indicate that you worked and report your gross earnings. NYS Department of Labor will automatically calculate any benefit reduction. Also make sure you're still actively looking for full-time work and keeping your job search log updated.

This is so confusing! I thought any work at all would disqualify you from unemployment. What if the freelance work turns into a regular thing? At what point do they consider you no longer unemployed?

I had trouble getting through to NYS Department of Labor when I had questions about reporting freelance income. Spent hours on hold and kept getting disconnected. Finally used claimyr.com to get connected to an actual agent - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. The agent was able to walk me through exactly how to report my consulting work properly.

just wanted to say thanks for asking this question! i've been wondering the same thing about my photography work

One thing to keep in mind is that you'll need to keep detailed records of all your freelance work - dates, hours worked, amount earned, and client information. NYS Department of Labor may ask for documentation during audits or if there are any questions about your claims. I'd recommend creating a simple spreadsheet to track everything. Also, don't forget that you'll need to pay self-employment taxes on your freelance income, so set aside about 25-30% of what you earn for taxes. The unemployment office doesn't withhold taxes from freelance earnings like they might from regular employment.

Great advice from everyone here! I'm a web developer who's been doing freelance work while on unemployment for about 3 months now. A few additional tips: 1) Save all your invoices and contracts - NYS Department of Labor can request these at any time, 2) If you have multiple small projects in one week, report the total earnings for that week, not each project separately, 3) Remember that the 25% earnings threshold applies to your gross weekly benefit amount, not your net amount after taxes. Also, even if you earn over the threshold and your benefits get reduced to $0 for a particular week, you can still certify and potentially get benefits the following week if your freelance income drops. The key is staying consistent with reporting - it's much better to report everything and have your benefits reduced than to risk an overpayment penalty later.

I'm also a graphic designer who's been in a similar situation! One thing I learned the hard way is to keep track of your hours worked, not just earnings. NYS Department of Labor considers you "unemployed" if you work less than 4 days or 30 hours per week. So even if you're earning within that 25% threshold, make sure you're not exceeding the hour limits. Also, when reporting freelance work, you'll answer "yes" to "did you work" but "no" to "did you refuse work" - those are separate questions that sometimes confuse people. I'd recommend calling them directly or using one of those callback services to clarify your specific situation since graphic design project timelines can be tricky to categorize week by week.

This thread has been incredibly helpful! I'm a freelance writer who's been nervous about taking on projects while collecting unemployment. Based on what everyone's shared, it sounds like the key is meticulous record-keeping and honest reporting. I'm going to create a tracking spreadsheet with columns for: date, client name, project description, hours worked, amount earned, and payment date. One question I have - for those of you who've been successfully freelancing while on benefits, do you find it affects your job search time? I'm worried that if I take on too many freelance projects, it might impact my ability to actively search for full-time employment, which I know is a requirement. How do you balance the two?

As someone who's been freelancing while on unemployment for the past 4 months, I want to emphasize something that hasn't been mentioned yet - make sure you understand how NYS calculates your "available for work" status. Even if you're under the hour and earnings thresholds, if you take on a freelance contract that makes you unavailable during normal business hours for potential interviews or work opportunities, it could affect your eligibility. I learned this when I took on a rush project that required me to work during typical interview hours for three days straight. Fortunately it didn't cause issues, but it made me realize I need to be more strategic about which projects I accept. Now I always ask clients about flexibility and try to schedule intensive work periods during evenings and weekends when possible. Also, keep copies of all your freelance contracts and invoices in both digital and physical formats - I had a computer crash last month and almost lost important documentation that unemployment office requested during a routine review.

I've been freelancing as a photographer while on unemployment for about 2 months now and wanted to share a few practical tips that have helped me stay compliant. First, I created a simple Google Sheets tracker with columns for date, project type, hours worked, gross earnings, and client contact info - this makes weekly reporting much easier. Second, I set up a separate business checking account for all freelance payments, which helps keep things organized for both unemployment reporting and tax purposes. One thing I learned is to be very specific about your work dates when reporting - if you do a wedding shoot on Saturday but spend Monday and Tuesday editing, you need to report work for all three days, not just the shoot day. Also, don't forget that travel time to/from shoots counts as work hours! I'd strongly recommend getting everything in writing with clients, even for small gigs - a simple email confirming the scope, timeline, and payment terms can serve as your contract documentation if unemployment office requests it. The most important thing is to be completely transparent in your weekly certifications. I'd rather lose a few dollars in benefits than risk having to pay back thousands later.

This has been such an informative discussion! As someone who's been hesitant to start freelancing while on unemployment, reading everyone's experiences has really helped clarify the process. I'm a freelance copywriter and have been turning down potential projects because I was afraid of jeopardizing my benefits, but now I understand that it's totally doable with proper reporting and record-keeping. I'm going to set up that tracking spreadsheet that several people mentioned and start small with a few projects to get comfortable with the reporting process. One quick question for those who've been doing this - do you report your freelance work under "employment" or is there a separate category for self-employment/freelance work when you're doing your weekly certification? I want to make sure I'm selecting the right options when I fill out my claim. Thanks everyone for being so generous with your advice and experiences!

I'm a freelance web developer who's been successfully balancing unemployment benefits with freelance work for about 5 months now. One thing I haven't seen mentioned yet is the importance of understanding how quarterly earnings reviews work. NYS Department of Labor will periodically review your total earnings over a quarter, and if your average weekly freelance income consistently approaches or exceeds your weekly benefit amount, they may determine you're no longer "unemployed" even if you're reporting everything correctly. This happened to a friend of mine who was earning just under the weekly threshold each week, but over 3 months it added up to significant income. The key is to think long-term, not just week-to-week. Also, I'd recommend keeping a backup fund from your freelance earnings because there can sometimes be delays in benefit payments when you're reporting variable income - having a small cushion helps avoid financial stress during those gaps. One more tip: if you're doing ongoing work for the same client (like maintaining a website), make sure you're not accidentally creating an employer-employee relationship, which could affect your unemployment status differently than true freelance work.

I've been freelancing as a UX designer while on unemployment for about 3 months and wanted to add a few practical tips that have really helped me. First, I always send clients a brief project summary email after we agree on work - it doesn't need to be a formal contract, but having the scope, timeline, and payment terms in writing has saved me multiple times when unemployment office requested documentation. Second, I learned to be very conservative with my time estimates when deciding whether to take on projects. What seems like a 20-hour project often becomes 30+ hours when you factor in revisions, client calls, and administrative time. Since NYS tracks both hours and earnings, it's better to underestimate your availability than to accidentally exceed the 30-hour weekly limit. Finally, I keep a running tally of my quarterly freelance earnings on my tracking spreadsheet - this helps me see the bigger picture that Malik mentioned about quarterly reviews. If I notice I'm consistently earning close to my weekly benefit amount, I can be more selective about future projects to avoid triggering a review. The mental shift from "maximizing income" to "optimizing for long-term benefit eligibility" took some getting used to, but it's been crucial for maintaining my benefits while building freelance experience.