Can you get unemployment if you own a business in NY - NYS Department of Labor eligibility question
I've been running a small consulting business for the past two years but work has completely dried up since the beginning of this year. I haven't had any clients in 3 months and I'm struggling to pay my bills. Can I apply for unemployment benefits through NYS Department of Labor even though I technically own my business? I've heard mixed things about this and I'm not sure if being self-employed disqualifies me automatically. Has anyone been in a similar situation with their own business and still qualified for UI benefits?
12 comments
Join the conversation
Ezra Bates
This is actually more complicated than most people think. For NYS Department of Labor purposes, business ownership doesn't automatically disqualify you, but there are specific criteria you have to meet. You need to show that you're truly unemployed and not just having a slow period. The key factors they look at are: 1) Whether you're actively operating the business 2) If you have employees 3) Your level of control over work availability 4) Whether you're available for other employment. If your business is essentially dormant and you're genuinely seeking other work, you might qualify.
0 coins
Keith Davidson
•Thanks for the detailed response! My business doesn't have any employees, it's just me, and I haven't had any income from it in months. I'm definitely looking for regular employment now because the business isn't sustainable. Do I need to officially close the business or can I just show it's inactive?
0 coins
Ana Erdoğan
i think you have to close the business completely to get benefits but im not 100% sure on that
0 coins
Sophia Carson
Actually, you don't necessarily have to close the business entirely. What matters more to NYS Department of Labor is whether you meet the 'able and available' requirement. If your business is inactive and you're genuinely seeking employment elsewhere, that can work. However, you'll need to be very careful about how you report this on your weekly claims. Any income from the business, even minimal amounts, must be reported. I'd recommend calling NYS Department of Labor to discuss your specific situation before filing.
0 coins
Elijah Knight
•Good luck getting through to anyone at NYS Department of Labor by phone though! I've been trying for weeks about my own claim issue. The wait times are insane and half the time they just hang up on you.
0 coins
Brooklyn Foley
•If you're having trouble reaching NYS Department of Labor by phone, I recently discovered this service called Claimyr (claimyr.com) that helps you get through to actual agents. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I used it last month when I needed to resolve an adjudication issue and actually got connected to someone within an hour instead of spending days trying to call. Might be worth checking out for your business owner situation since you'll probably need to speak with someone directly about the specifics.
0 coins
Jay Lincoln
Wait, I'm confused about something related to this. If you own a business, don't you have to pay into the unemployment system as an employer? Or is that only if you have employees? I'm thinking about starting my own freelance work but want to understand all the implications first.
0 coins
Ezra Bates
•That's a different issue entirely. If you're self-employed without employees, you typically don't pay into the UI system, which is part of why claiming benefits as a business owner can be complicated. You'd need to have prior covered employment to establish a benefit year.
0 coins
Jessica Suarez
The whole system is so confusing and seems designed to keep people from getting help. I had my own business fail during covid and the hoops they made me jump through were ridiculous. Even when I qualified they kept questioning every little thing.
0 coins
QuantumQuest
•I totally understand your frustration with the system. The process can be really overwhelming when you're already stressed about finances. For anyone dealing with business closure situations, one thing that helped me was keeping really detailed records of everything - when the business stopped generating income, any job search activities, etc. NYS Department of Labor seems to want documentation for everything. Also, if you do get approved, be prepared for them to potentially audit your claim later. They're pretty thorough about business owner cases.
0 coins
Miguel Ramos
I went through something similar last year when my photography business basically collapsed. The key thing that helped me get approved was being completely transparent about the business status and showing that I was genuinely available for other work. I had to provide documentation showing no active clients, no marketing efforts for the business, and proof that I was applying for regular jobs. NYS Department of Labor did approve my claim, but they made me do a phone interview specifically about the business ownership issue. My advice would be to gather all your business records showing the decline in work and start documenting your job search efforts now, even before you apply. The process took longer than a regular claim but it worked out in the end.
0 coins
Nolan Carter
•This is really helpful to hear from someone who actually went through the process successfully! The phone interview part makes me a bit nervous - what kinds of questions did they ask during that? I'm wondering if I should start preparing answers about why my consulting work dried up and how I'm transitioning to looking for regular employment. Also, when you say "proof that I was applying for regular jobs" - did they want like screenshots of applications or something more formal?
0 coins