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.
12 comments
Join the conversation
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.
0 coins
Saleem Vaziri
AuthorOh god this is exactly what I was afraid of hearing. How do I report it voluntarily? Will that help reduce the penalties?
0 coins
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
0 coins
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.
0 coins
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.
0 coins
Saleem Vaziri
AuthorThank you, this is helpful. Do you know what the fraud reporting number is? I can't find it on their website.
0 coins
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.
0 coins
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
0 coins
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.
0 coins
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.
0 coins
Sayid Hassan
I mean I get being frustrated but the rules about reporting income are pretty clear in the handbook they give you...
0 coins
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.
0 coins