Can you drive for Uber and collect unemployment benefits in NY?
I've been unemployed for about 6 weeks now and my savings are running low. I'm thinking about signing up to drive for Uber while I look for a full-time job, but I'm worried this might mess up my unemployment benefits. Does anyone know if you can drive for Uber and still collect UI? I don't want to lose my benefits but I need some extra income to cover my bills. My weekly benefit amount is $504 and I really can't afford to lose that right now.
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CosmicVoyager
Yes, you can work part-time including gig work like Uber while collecting unemployment in NY, but you MUST report all earnings on your weekly claim. The NYS Department of Labor will reduce your benefits based on what you earn. If you earn less than your weekly benefit rate, you'll still get partial benefits. Just make sure to report every dollar you make or you could face an overpayment.
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Isabella Ferreira
•Thanks! Do you know how much they reduce the benefits? Like if I make $200 driving Uber one week, how much would my $504 benefit be reduced?
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Ravi Kapoor
The formula is they subtract your earnings minus $50 from your benefit amount. So if you earned $200, they'd subtract $150 from your $504 benefit, leaving you with $354. But remember, as an independent contractor for Uber, you'll need to save money for taxes since they don't withhold anything.
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Freya Nielsen
•Wait, I thought there was no work deduction anymore? I've been reporting my part-time work but still getting my full benefit amount.
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Ravi Kapoor
•You might be thinking of the pandemic rules that ended. The current NY rule is earnings over $50 reduce your weekly benefit dollar for dollar.
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Omar Mahmoud
BE CAREFUL about job search requirements though! You still have to be actively looking for full-time work and be available for interviews. If you're driving Uber 40+ hours a week, NYS Department of Labor might question whether you're truly available for other employment. Keep your driving schedule flexible so you can attend interviews.
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Isabella Ferreira
•Good point, I hadn't thought about that. I was planning to just drive evenings and weekends anyway so hopefully that won't be an issue.
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Chloe Harris
I've been trying to get through to NYS Department of Labor for weeks to ask about this exact same thing but their phone lines are always busy. Has anyone actually gotten through to confirm these rules? I don't want to mess up my claim by assuming.
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CosmicVoyager
•I had luck using Claimyr.com to get through to an actual NYS Department of Labor agent. They have a service that calls for you and connects you when they reach someone. There's a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of trying to call myself.
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Chloe Harris
•Thanks, I'll check that out. I've been calling for 3 weeks straight with no luck getting through.
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Diego Vargas
Just started driving for uber last month while on UI. The key is being HONEST about your earnings. I made the mistake of not reporting $300 one week and got hit with an overpayment notice. Now I owe back $800 plus penalties. Don't try to hide anything from NYS Department of Labor - they will find out eventually.
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NeonNinja
wait so if I make like $600 driving uber one week would I lose ALL my unemployment for that week?? that seems crazy
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Ravi Kapoor
Yes, if you earn more than your weekly benefit amount plus $50, you get zero unemployment that week. So with a $504 benefit, if you earned over $554 in a week, no UI payment. But you can still certify and your claim stays active for the following week.
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Henry Delgado
I've been driving for Uber while collecting UI for about 3 months now. A few things to keep in mind: 1) Track ALL your expenses (gas, car maintenance, phone mount, etc.) because you'll need them for taxes, 2) The $50 deduction Ravi mentioned is correct - it's called the "partial benefit credit", and 3) Consider driving during peak hours (Friday/Saturday nights, rush hour) to maximize your earnings in fewer hours. This way you can still dedicate most of your time to job searching. Also, keep detailed records of your job search activities because NYS Department of Labor can audit your work search requirements at any time.
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Connor O'Neill
•This is really helpful advice! I'm curious about the expense tracking - do you use a specific app or just keep receipts? And when you say "peak hours," roughly how many hours per week are you driving to stay within that sweet spot where you're earning decent money but not jeopardizing your job search availability?
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