Can you get unemployment if your business closes - NYS Department of Labor eligibility?
My restaurant had to shut down permanently last month due to rising costs and I'm wondering if I can file for unemployment benefits? I was the owner/operator but also paid myself as an employee through payroll. I've been paying into unemployment insurance for myself and my staff for years. Does NYS Department of Labor consider business owners eligible if they were on payroll? I'm really confused about this and need to know if I should even bother applying.
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Fatima Al-Mansour
Yes, you can potentially qualify! If you paid yourself wages and had unemployment taxes withheld, NYS Department of Labor treats you like any other employee when your business closes. You'll need to show you were paying UI taxes on your wages and that the business closure wasn't voluntary. Make sure you have your payroll records ready when you file.
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Giovanni Rossi
•Thank you! I do have all my payroll records. Should I mention that I was the owner when I file or just list myself as an employee?
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Dylan Evans
wait business owners can get unemployment?? i thought that was only for regular employees
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Sofia Gomez
•It depends on how the business was structured. If they were paying themselves as a W-2 employee and contributing to unemployment insurance, then they're eligible just like any other worker when the business fails.
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StormChaser
I went through this exact situation when my shop closed in 2023. NYS Department of Labor approved my claim but it took forever to get through adjudication because they had to verify that I wasn't just voluntarily closing to collect benefits. Be prepared for extra documentation requests - they wanted profit/loss statements, lease termination notices, everything. The whole process took about 6 weeks but I did get approved.
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Giovanni Rossi
•Six weeks sounds scary but at least you got approved! What kind of documentation did they ask for specifically?
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StormChaser
•They wanted my business bank statements for the last 6 months, notice from my landlord about lease termination, and a letter explaining why the business had to close. Also had to prove I was actively looking for work during my claim.
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Dmitry Petrov
The adjudication process for business owners is a nightmare! I've been waiting 3 weeks just to speak to someone at NYS Department of Labor about my eligibility. Every time I call the main number I get disconnected or put on hold for hours. Has anyone found a way to actually reach a real person there?
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Fatima Al-Mansour
•I had the same problem with getting through to NYS Department of Labor. Someone on here mentioned a service called Claimyr (claimyr.com) that helps you connect directly with unemployment agents. I tried it and actually got through to someone within 20 minutes. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Might be worth checking out if you're stuck in phone hell like I was.
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Dmitry Petrov
•Thanks I'll look into that! Anything is better than sitting on hold for 3 hours just to get hung up on.
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Ava Williams
Just be honest on your application about being the business owner. NYS Department of Labor will find out anyway when they verify your employment history. The key is showing that the closure was due to economic necessity, not choice. Good luck!
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Connor O'Neill
•@Giovanni Rossi This is great advice! I d'also suggest gathering any documentation that shows the business closure was involuntary - things like unpaid vendor bills, bank notices about insufficient funds, or correspondence with suppliers about payment issues. The more you can demonstrate it was economic necessity rather than a strategic decision, the stronger your case will be with NYS Department of Labor.
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