Can you go to jail for claiming unemployment while working in NY?
I'm really stressed out right now. My friend told me someone she knows got arrested for unemployment fraud and now I'm panicking. I've been getting unemployment benefits since August and I did some cash work here and there but didn't report it because I thought it would mess up my claim. The work was only like 2-3 days a month, maybe $400 total. But now I'm scared I could actually go to jail? Does anyone know if NYS Department of Labor actually prosecutes people for this kind of thing? I know I should have reported it but I was afraid they'd cut off my benefits completely.
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Kayla Morgan
Yes, unemployment fraud is a serious crime in New York and can result in criminal charges including jail time. The NYS Department of Labor actively investigates fraud cases and works with prosecutors. You need to stop working unreported immediately and consider reporting the income voluntarily before they discover it. The penalty is usually repayment of overpaid benefits plus interest and fines, but criminal prosecution is possible especially for willful fraud.
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Saleem Vaziri
•Oh god this is exactly what I was afraid of hearing. How do I report it voluntarily? Will that help reduce the penalties?
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James Maki
i think ur overreacting a bit... they usually only go after big fraud cases like people making thousands while collecting. $400 over several months probably won't land you in jail but you should definitely stop and figure out how to fix it
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Kayla Morgan
•That's not accurate advice. Any unreported income while collecting unemployment is considered fraud regardless of the amount. The NYS Department of Labor has prosecution agreements with district attorneys statewide.
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Jasmine Hancock
You need to contact NYS Department of Labor immediately and report the unreported income. Call their fraud reporting line or use the online portal. Yes, you'll probably have to pay back benefits plus penalties, but voluntary disclosure usually results in civil penalties rather than criminal prosecution. The longer you wait, the worse it gets. Document everything about the work you did - dates, amounts, employer info.
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Saleem Vaziri
•Thank you, this is helpful. Do you know what the fraud reporting number is? I can't find it on their website.
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Jasmine Hancock
•I had trouble getting through to NYS Department of Labor when I needed to fix an issue with my claim. Someone on here recommended this service called Claimyr (claimyr.com) that helps you get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out since this is urgent.
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Cole Roush
Same thing happened to my neighbor last year except he was working full time and collecting for 6 months. They made him pay back like $8000 plus fines but no jail time. Still ruined his credit though and now he can't get approved for anything
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Scarlett Forster
•Wait was he working full time the whole time or just some days? That makes a huge difference in how they handle it.
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Arnav Bengali
THE SYSTEM IS DESIGNED TO TRAP PEOPLE!! They make the rules so confusing that honest people make mistakes and then they treat you like a criminal. Meanwhile rich people steal millions and get away with it. This whole unemployment system is a joke and they use fear tactics to keep people scared.
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Sayid Hassan
•I mean I get being frustrated but the rules about reporting income are pretty clear in the handbook they give you...
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Christopher Morgan
I understand you're scared, but you need to act quickly. Contact the NYS DOL fraud hotline at 1-888-598-2077 or report online through their website. Be completely honest about all the unreported work - dates, amounts, who paid you. Yes, you'll likely owe money back plus penalties, but voluntary disclosure almost always keeps it civil rather than criminal. The key is acting before they discover it themselves. Also, stop any unreported work immediately. Document everything and consider consulting with an employment attorney if the amounts get significant. The sooner you come forward, the better your outcome will be.
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Layla Mendes
•This is really solid advice. I've been in a similar situation and can confirm that being proactive makes a huge difference. When you call that fraud hotline, be prepared to provide specific details about every instance of unreported work - they'll want exact dates, amounts earned, and employer information if possible. Also, keep records of your call and any correspondence with them. The voluntary disclosure really does help - they view it much more favorably than discovering unreported income during an audit. Don't let fear paralyze you into waiting longer, because that only makes things worse.
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Aisha Hussain
I went through something similar last year and want to share what I learned. First, take a deep breath - while this is serious, it's not the end of the world if you handle it correctly. The $400 over several months puts you in a much better position than someone who was working full-time while collecting. Here's what you should do: 1) Call the fraud hotline immediately at 1-888-598-2077 as others mentioned, 2) Gather all documentation about the cash work (dates, amounts, who paid you), 3) Be completely honest when you report - they can tell when people are still hiding things, and 4) Stop any unreported work right now. In my case, voluntary disclosure resulted in repaying the overpayment plus a 15% penalty, but no criminal charges. The key is acting before they find out through other means like tax records or employer reports. Yes, it's stressful and expensive, but it's much better than the alternative of them discovering it during an audit.
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Dmitry Ivanov
•Thank you so much for sharing your experience - this actually makes me feel a bit more hopeful. The 15% penalty sounds manageable compared to what I was imagining. Can I ask how long the whole process took once you reported it? I'm worried about how this might affect my ability to collect unemployment in the future if I need it again. Also, did you have to deal with multiple agencies or was it all handled through the NYS DOL?
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Beatrice Marshall
•@Aisha Hussain Your experience gives me hope too. I m'in almost the exact same situation as the original poster - small amounts of unreported cash work while collecting benefits. I ve'been paralyzed by fear for weeks but your post convinced me I need to call that fraud hotline tomorrow. Can you share any tips for what to expect during that first phone call? Like do they immediately start an investigation or give you time to gather documentation first? I m'worried I ll'say something wrong and make my situation worse.
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